Building Wealth

For the first 30 or so years of working, saving and investing, you’ll be first in the mode of getting out of the hole (paying down debt), and then building your net worth (that’s wealth accumulation.). But don’t forget, wealth accumulation isn’t the ultimate goal. Decumulation is! (a separate category here at the Hub).

How to turn a Little Money into a Lot of Money

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Alain Guillot in Cascais, Portugal, a rich neighborhood.

By Alain Guillot

Special to Financial Independence Hub

Learning how you can turn a little bit of money into a lot of money is a great way to get your finances on the right track. After all, this can help with everything from paying off debt and credit card bills to growing your savings.

With that in mind, here are some top tips that you can use to do exactly that!

 

Add money to your savings immediately after getting paid

Don’t wait until the end of the month (i.e., when you have spent all your money) to think about transferring cash into your savings account. Instead, transfer a pre-designated amount of money into your savings account each payday. This way, you are reducing the chances of spending money you’d originally wanted to save!

By regularly adding to your savings account, you put yourself in the best possible position to improve your finances in the long term. When setting up a savings account, make sure you choose one with a great interest rate!

Start investing

Whether you’re going to buy and sell Cyrpto currency or going down a more traditional investment pathway, investing money is a great way to turn a little cash into a lot of cash. This can also be a great way to earn passive income, as a lot of the work is out of your hands once you’ve made the initial investment.

Of course, you should make sure to do plenty of research ahead of time so that you are protecting your best interests as much as possible. Remember, while no investments are risk-free, some are more stable than others, and you should not invest money you cannot afford to lose.

Turn your hobby into a side-hustle

Turning your hobby into a side hustle can also help you to turn your finances around, and could even become a real money-maker over time. While it may not seem that way to begin with, you can monetise just about every hobby. Whether you’re a painter or a writer, you simply need to be willing to put the work in to refine your craft and get your name out there. Continue Reading…

AI Bubble Worries? Read This

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By Ariel Liang, BMO Global Asset Management

(Sponsor Blog)

If you’ve ever felt nervous about the stock market ups and downs, you’re not alone. Most investors want their money to grow steadily without the wild swings: especially if you’re thinking about retirement. Lately, worries about an AI bubble and changing interest rates have shown just how quickly things can get unpredictable.

That’s why building the right portfolio is important to help you stay calm and stay invested, even when markets get a little rocky.

Low-volatility investing, and specifically using funds such as BMO Low Volatility Canadian Equity ETF (ZLB) and BMO Low Volatility US Equity ETF (ZLU), are designed to give you a smoother experience. These strategies help you stay invested with confidence no matter what the markets are doing.

What does Low Volatility mean for your Investments? 

Imagine low-volatility investing as playing it smart in baseball: not trying for risky home runs, but focusing on steady singles and doubles. This way, you keep making progress, scoring runs over time, and avoiding big losses. It’s all about reliable growth, not wild swings that could set you back.

ZLB and ZLU are designed to help your investments stay on track, even when markets get unpredictable. They pick companies that don’t jump around as much as the overall market: think of them as the steady players on the team. By steering clear of those big ups and downs, your money can grow more smoothly, and you can benefit from compounding over time.

Building a Smoother Ride with Low volatility

ZLB and ZLU focus on defensive sectors like utilities, consumer staples, and healthcare. These ETFs can act as financial shock absorbers, reducing risk from market swings and limiting exposure to more volatile sectors like technology. Position and sector caps further protect against over-concentration, while the selection of low-beta1 companies means the portfolio is designed to cushion losses during downturns.

The disciplined construction of ZLB and ZLU helps you stay on course regardless of market conditions. This approach isn’t about chasing the latest trends but about building steady, long-term growth through stability and diversification, letting compounding work its magic over time.

Low volatility cushioned the blow with stability

Chart 1

Note: Data as of September 30, 2025. Source: BMO AM Inc. Bloomberg Sector allocation subject to change without notice.  Chart compares sector allocations of BMO Low Volatility Canadian Equity ETF and S&P/TSX Composite Index as of September 30, 2025, and shows Consumer Staples outperforming Energy in Canada from 2011 to 2024.

Common Myth: Low-Volatility ETFs reduce Return

Low volatility doesn’t mean you have to settle for lower returns. In fact, Canadian low-volatility investments have consistently outpaced the S&P/TSX Capped Composite Index since inception, offering strong returns while helping to reduce risk.

Chart 2

Note: Data as of September 30, 2025. Source: BMO AM Inc. Bloomberg Sector allocation subject to change without notice.  Chart compares sector allocations of BMO Low Volatility US Equity ETF and S&P 500 Index as of September 30, 2025, and shows Technology outperforming Utilities from 2013 to 2025.

The U.S. market is highly concentrated in the Magnificent 72 and generally information. Because ZLU invests more in stable sectors like utilities and healthcare, it provides steady, long-term returns, though it might not keep up with the S&P 500 when the market is booming, as it has more recently with the growth dominated in the Tech sector. Even with this more cautious approach, ZLU still delivers strong annual returns for investors by emphasizing stability and value rather than jumping into the latest tech trends.

Balanced Growth, Less Stress: Blending ETFs for Smoother Returns

If you want steady growth for your portfolio without taking on too much risk, you may not have to choose between safety and strong returns. By combining BMO Low Volatility US Equity ETF (ZLU) with BMO NASDAQ 100 Equity Index ETF (ZNQ), you can get the best of both worlds: reliable stability and exciting growth. This mix has delivered higher returns and lower risk than simply investing in BMO S&P 500 Index ETF ( ZSP) as shown in Chart 3. Continue Reading…

Real Estate Investing in Canada can be Profitable but It’s no sure thing

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Here’s what we think about real estate investing in Canada — and it may surprise you

TSInetwork.ca

We’re constantly asked about real estate investment in Canada (or investment in Florida real estate, for that matter), and we understand the appeal. Even though today’s house prices still remain high in most markets (i.e., Toronto and Vancouver) mortgage interest costs are expected to fall as inflation comes back down. And owning your own home has a number of advantages.

In terms of real estate investment, owning your house is a great tax shelter. That’s because gains on your principal residence are exempt from capital-gains taxes. Note, though, that this benefit only applies to your principal residence, and not investment in Florida real estate as a second home or income property. You must still pay tax on gains on the sale of a recreational property, such as a cottage or a ski chalet. But these properties generally appreciate at a much slower rate than, say, a home in a major urban centre. That’s a key consideration with any real estate investment.

What are the best real estate investment strategies in the current market?

Given Canada’s diverse real estate landscape in 2025, the most effective strategy is to focus on suburban multi-family properties in growing secondary markets like Hamilton, Halifax, or Kelowna, where prices remain relatively affordable while offering strong rental demand and potential for appreciation.

What are the potential risks of investing in real estate right now?

The primary risks include rising interest rates affecting mortgage payments, potential market corrections in overvalued areas, and stricter regulations on foreign buyers and short-term rentals in major Canadian markets.

Capital-gains taxes are also applicable to gains on real estate investment, such as rental properties you buy for investment purposes.  Moreover, this type of real estate investing in Canada (or investment in Florida real estate) involves a number of other commitments that can make it feel more like running a small business than, say, investing in stocks. With stocks, you only have to tell your broker to buy: everything else is done for you.

By contrast, when you own rental property, you have to spend time finding and dealing with tenants, arranging for maintenance, doing the accounting and so on. You can hire others to do these tasks for you, but that can get very expensive.

Moreover, real estate investing in Canada can entail higher levels of risk than stocks. That applies to investment in Florida real estate and other U.S. sunshine destinations. Simply put, all real estate investment must contend with the fact that real estate is less liquid, more expensive to manage and to buy or sell, and highly geographically concentrated. Rising crime, unpleasant neighbours and other changes on the street or in your property’s neighbourhood can make it hard to find tenants or buyers. So can physical problems, like adverse traffic patterns, backed-up sewers and zoning changes that allow undesirable development, or limit what you can do with your real estate investment property.

Many real estate investing enthusiasts say that if you buy a property with a 20% down payment (which is the Canadian government’s proposed new minimum to qualify for government-backed mortgage insurance on a property that is not your principal residence), then a 20% rise in the property’s value means you have doubled your money.

However, that claim neglects the costs of selling (up to 5% or 6% for real-estate commissions, plus lawyer’s fees and related costs). It also overlooks any negative cash flow you may have experienced while you owned the property, because rents failed to cover expenses. When you’re less familiar with the market, such as with Canadian investment in Florida real estate, that kind of unfavourable outcome is more likely.

How can I prepare my real estate investments for potential economic downturns or unexpected events?

Maintaining substantial cash reserves (ideally 6-12 months of expenses per property), keeping conservative loan-to-value ratios, and diversifying across different property types and locations provides the strongest protection against market volatility.

What is the best long-term investment strategy for building wealth through real estate?

The most reliable strategy is buying and holding cash-flowing multi-family properties in growing metropolitan areas while systematically paying down the mortgages to build equity over time.

We continue to believe that ownership of a primary residence is all the real estate exposure most investors need. Still, we get many questions about real estate investment beyond that. If you want to add to your real estate holdings, one good way to do it is through real estate investment trusts, or REITs.

Real estate investment trusts invest in income-producing real estate, such as office buildings and hotels. Some may even focus on investment in Florida real estate or other key U.S. markets for vacationers. Generally, that’s a segment of the market that is difficult for most investors to access through direct ownership of property. Moreover, real estate investment trusts save you the cost, work and risk of owning investment property yourself.

If you’re interested in real estate investing in Canada through a REIT, we still recommend RioCan Real Estate Investment Trust (symbol REI.UN on Toronto). It, like all REITs, continues to suffer fallout from the COVID-19 pandemic. Still, RioCan continues to benefit from an increasingly solid portfolio of properties now focused on Canada’s biggest markets. It is also working to diversify its portfolio beyond malls (these malls feature large stores that are usually part of a chain). We cover RioCan in our Successful Investor newsletter. Continue Reading…

’Tis the season for a broad Emerging Markets core and a dash of Dynamic Tilts

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Image courtesy Franklin Templeton

By Dina Ting, CFA, Franklin Templeton ETFs

(Sponsor Blog)

It’s that time of year again. Holiday shoppers know the secret: start with a meaningful primary gift that makes an impression. Add smaller delights for a personal touch. Asset allocators can do the same: anchor portfolios with a broad emerging market (EM) core and use dynamic tilts1 for the perfect stocking stuffers.

The broad EM equity rally has now entered a more structurally supportive phase rather than a pure sentiment bounce. EM equities have advanced for 10 straight months, now up more than 30% year to date, outpacing U.S. large caps, which returned slightly less than half that over the same period.2 We believe this outperformance is likely to continue through year‑end amid a weaker US dollar, improving earnings and growing demand for geographic diversification.

Valuation gaps remain wide: EM equities recently traded at nearly a 40% discount versus US peers: one of their lowest forward price-to-earnings (P/E) differentials in over a decade. Meanwhile, early macro indicators suggest modest expansion among EM manufacturing sectors.

Adding to this tailwind, the recent decline in the US dollar is easing financial conditions across EMs. The weaker greenback makes it cheaper for EM borrowers to service dollar-denominated debt, while the Federal Reserve’s pivot toward interest-rate cuts is fueling renewed demand for local-currency bonds that still offer attractive real yields. Meanwhile, deepening trade and manufacturing linkages between the United States and Mexico underscore how supply-chain rerouting is boosting multiple EM hubs — not just one market — reinforcing the case for a broad EM core. These forces of less dollar pressure, falling US rates and stronger regional trade flows are creating what we see as a more favorable backdrop for EMs.

 

In terms of portfolio construction, a diversified EM allocation anchors exposure to global easing, demographic growth and digital transformation, while selective country tilts reflect conviction-driven opportunities. Such an approach helps investors look beyond short-term noise and stay invested through the macro cycle. With valuations still moderate, we believe the risk-reward for EMs broadly remains compelling.

Why broad core + dynamic tilts works now

Global supply-chain remapping triggered by tariffs has created more stark standouts and laggards across the EM universe and we believe a broad EM core can help capture the multiplicity of growth vectors, while dynamic tilts allow investors to capture standout growth pockets when dispersion widens. South Korea’s equity market, for example, has emerged as a clear leader this year, up nearly 70% year-to-date: the strongest returns for any major market globally.3 Continue Reading…

2026 shaping up to be a difficult year for financial assets

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iStock/Pixabay

By John De Goey, CFP

Special to Financial Independence Hub

As you know, I have frequently expressed concerns about high valuations for stocks. The concern has been expressed vehemently, yet so far, no serious risk has presented itself in terms of market drawdowns.

The narrative of U.S. public markets being risky has not proven to be accurate over the past few years. That said, what was once a minority view is becoming increasingly mainstream, as valuations remain stretched. The adage of ‘markets can remain irrational for longer than you can remain solvent’ has proven to be prescient and problematic for those who raised their cash positions. It has also caused certain commentators (including myself) to feel like Chicken Little. Despite our breathless admonitions, the sky has not fallen: yet.

Reallocate to more reasonably priced Asset Classes

Some people chose to exit public securities, but not capital markets. Private assets where there are likely to be pockets of more realistic valuation, as well as traditional inflation hedges like infrastructure and gold, have all performed relatively well in 2025. Rather than engage in market timing, this approach is more akin to an active reallocation toward being fully invested in asset classes that are more reasonably priced.

Continue Reading…