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).

Who gets the Porsche — you or your investment firm? … Fees Matter! Introducing FWB TV

Posted By Jonathan Chevreau | September 30, 2015

The Financial Independence Hub is excited to unveil a new Internet video project on investing made possible by FWB TV, a unit of Toronto based Financial Wealth Builders Securities.

Starting today and on a regular basis, the Hub’s sister site, Findependence.TV, will be housing video content provided by FWB TV Paul Philip CLU, CFP and his associates. These high-quality videos generally run between two and four minutes and focus on investment strategies that are quite consistent with the content normally run on the Hub blogs.

You can find the first one by clicking on this headline: Who gets the Porsche — you or your investment firm? … Fees Matter! Expect the next instalment in a week or two.

Q&A on the rationale for FWB TV

To introduce the series and explain the rationale, here is a Q&A between myself and FWB TV owner Paul Philip CLU, CFP:

Weekly Wrap: Horizons escalates ETF price war, Questrade expands active ETFs, CSA to review robo advisers

Posted By Jonathan Chevreau | September 25, 2015

Three significant developments in the ETF and robo-adviser space late this week, the full recap of which can be found in my new Weekly Wrap that may run online Fridays in the Financial Post. You can find the link for the first one here.

Horizons ETFs has rejigged fees on its popular Canadian equity fund, Horizons S&P/TSX 60 Index ETF [ticker HXT,] to just 0.03% or three basis points (plus taxes, down from the previous 0.05%. Previously the low-fee threshold was 0.05%, shared with three other providers.

Meanwhile, Questrade Wealth Management launched two actively managed ETFs, a global equity fund plus a fixed income ETF subadvised by institutional money manager, Jarislowsy, Fraser Ltd. These expand the lineup of six Questrade Smart ETFs launched in March.

On Thursday, the Canadian Securities Administrators (CSA) issued CSA Staff Notice 31-342 directed at portfolio managers providing online advice, popularly known as robo advisers. The CSA says it may conduct compliance reviews of online advisors within one or two years following launch, particularly as operations become more complex than the first generation that had basic ETFs or mutual funds as its underlying investments, and “uncomplicated” asset allocation models.

Millennial is mortgage free at 31. Next goal: Findependence Day by 35

Posted By Jonathan Chevreau | September 25, 2015

Sean Cooper in front of his paid-for home

My latest MoneySense blog features 30-year old millennial and financial writer Sean Cooper, who is having a mortgage-burning party tonight to celebrate his paying off his mortgage in just three years. See Mortgage free by 31.

In an early guest blog here at the Hub, Cooper credited my financial novel, Findependence Day, with inspiring him to seek early financial independence himself. See also a second millennial’s story at Two millennials well on the way to achieving early Financial Independence.

The book argues in particular that “the foundation of financial independence is a paid-for house.”

Cooper apparently took this message to heart because. He doesn’t even turn 31 for a few more months and has set his next goal to achieve a net worth of $1 million within four years. Well done, Sean, may you serve as an inspiration to your generation!

Click on the above link at MoneySense to find the full Q&A I conducted with Sean, or see this mirror blog at sister site FindependenceDay.com.

How to cope with stormy markets

Posted By Financial Independence Hub | September 25, 2015

By Adrian Mastracci

KCM Wealth Management

Special to the Financial Independence Hub

The top question directed my way these days is: “What do I do in these markets?”

Investors constantly fret about surviving stormy markets, like the present.
Rising some days then slipping on others.

For example, the Dow trimmed over 12% from its 52-week high.
Similarly, the TSX has fallen more than 14%.

Financial history repeats itself all too frequently.
Price swings of this size should be expected as normal by every investor.

The absence of global growth is felt in all markets.

Some questions

Many questions arise, such as: Continue Reading…

Plain-Sight Strategy #3: Controlling Costs — Don’t spend more than you need to

Posted By Financial Independence Hub | September 24, 2015

By Paul Philip CLU, CFP Financial Wealth Builders Securities.

Special to the Financial Independence Hub

In the first two installments of our three-part “Hidden in Plain Sight” investment strategy series, we’ve covered the importance of staying invested to earn market returns, while managing the risks involved. We’ll conclude with what may be the most obvious and powerful piece of advice of all, even if it does not seem to receive the attention it deserves.