Tag Archives: Financial Independence

Millennials can learn from Boomers’ reinvention of Retirement

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dcitizen2
Digital Citizen Show. Left to right: Hugh Reilly, Norman Evans, Jon Chevreau

By Kollin Lore, Hub Staff

We are edging nearer to 2031, the year when all Baby Boomers will be age 65 and above, and most will at least be contemplating some form of Retirement or Semi-Retirement.

It will also be a time when the millennials will have pretty much all grown up and taken over the workforce.

Next month Jonathan Chevreau and Mike Drak’s Victory Lap Retirement will be published, a perfect time considering the age we are headed towards. However, though the book concerns the older generation, there is much to learn for millennials too.

Earlier in July, Chevreau discussed his upcoming book on Digital Citizen’s ThatChannel with creative director, Norman Evans, Laura Tyson, and host, Hugh Reilly. Click on the highlighted link to access the YouTube video: Get Ready to Earn Your “Playcheque.”

“The Boomers have reinvented every stage in life they have gone through,” said Chevreau. “Now they are going to reinvent retirement, by starting with the word ‘retirement’ because they are not ready to stop … That’s why Mike and I created the phrase Victory Lap.”

This titular ‘Victory Lap’ concerns finding that balance between stress and boredom following retirement. It means staying active and can include anything from travelling the world, to part time jobs, to volunteering to more time with family.

Of the many activities in which to partake during the Victory Lap, volunteering is an especially valuable past time to consider. Continue Reading…

Canada ranks 10th in global Retirement Security

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Global investments and international finance business symbol with four blue eggs with the maps of the world in a nest as a concept of savings and money management in many regions as Asia North America Europe and Latin America.While it ranks ahead of the United States and the United Kingdom, Canada ranks in tenth place in a global retirement security survey being released today (Tuesday).

Several countries in northern Europe and Scandinavia rank higher in the study by Natixis Global Asset Management. Norway is number one, followed by Switzerland and Iceland. However, because of a revised methodology, Canada’s 2015 ranking is two spots higher than under the 12th place spot it had under the survey’s older methodology. The Natixis Global Retirement Index was introduced in 2013, and bases its overall retirement security scores on four factors affecting the lives of retirees.

A central component is of course finances but three sub-indices measure well being, health and quality of life, providing a more holistic view of retirement than mere financial considerations.

Low interest rates a drawback for Canadian retirees

Continue Reading…

Young, saving, and hopefully one day buying a house

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IMG_7264By Helen Chevreau

Hub Staff

The cover story of this month’s Toronto Life magazine caught my eye straight away. “Young, Rich, and Totally Not Buying a House” it boldly claims.

As a young, not-yet-rich millennial who has no immediate plans to get into the housing market, I was intrigued. The article is written by 31-year-old Tony; a pharmacist who lives with his parents and eschews the traditional rites of passage of his peers, like home ownership.

Before I actually read the article, I was sure I wouldn’t like Tony, wouldn’t relate to him. Growing up in Toronto I’ve seen his type countless times. Money is no object, and he’s not shy to show it. A common defence from this kind of person is that ‘normal’ or ‘rational’ people who are judging him are jealous or boring (or both).

What I found interesting about this piece is that Tony seems very self-aware about his spending and lifestyle choices. He’s accepting of his friends who do choose to be “shackled to a monstrous mortgage for the next 30 years,” and he understands that sometimes it just isn’t possible to have it all.

Though much of what Tony talks about in this article is out of reach for most normal millennials (last minute trips to Asia, $200 bottles of wine), I appreciate the sentiment. Continue Reading…

Happy (Financial) Independence Day!

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Depositphotos_8101987_s-2015To all our American readers, the Findependence Hub wishes a happy  Independence Day, or  as we like to say around here, Findependence Day.

Bloggers are fond of building posts around the July 4th celebration, and several are using the phrase Financial Independence Day. For instance, a year ago Forbes.com published a blog titled Financial Independence Day for Millennials.

In fact, on June 21st, 2016, Richard Eisenberg of Next Avenue and Forbes.com did just that, re-running a similar piece entitled How to Declare Your Financial Independence. And he did make an explicit reference to Findependence Day, more on which below.

This weekend’s Motley Fool Money podcast, as it was a year ago, is titled Declare Your Financial Independence. It features interviews with authors and radio personalities Dave Ramsey and Clark Howard. Continue Reading…

Weathering the retirement storm

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Retirement crisis concept as a couple of adirondack chairs sinking in the ocean during a thunder storm as a metaphor for financial investment problems for retiring seniors who lost their savings or broken dreams symbol.By Sandy Cardy

Special to the Financial Independence Hub

Retirement is not just a destination; a time in the future. It’s also a journey; one that requires planning and nurturing along the way — not unlike your health.

While I’m not going to pretend saving money is easy, joining the ranks of those who have comfortable retirement savings may be a more realistic goal than you think. Achieving your savings goals requires a steady income, a commitment to saving, short-term sacrifices, and a smart investment strategy.

The climate

A 2013 study by the BMO Wealth Institute shows that Canadians – especially baby boomers — are falling short of their retirement income goals. Some 46 per cent of people asked expressed doubts about their ability to retire comfortably. (Source)

In the US, the outlook is equally bleak, according to the National Institute on Retirement Security (NIRS) report: The Retirement Savings Crisis: Is it Worse Than We Think?  “The average working household has virtually no retirement savings. When all households are included— not just households with retirement accounts—the median retirement account balance is $3,000 for all working-age households and $12,000 for near-retirement households.” (Source) Continue Reading…