Tag Archives: Financial Independence

Weekly Wrap: Happy Financial Independence Day! Eternal Truth # 7 completes series

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Independence day conceptBy Jonathan Chevreau

Financial Independence Hub

To 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 this year several are using the phrase Financial Independence Day. For instance, Forbes.com just published a blog titled Financial Independence Day for Millennials.

In fact, a year ago, Richard Eisenberg of Next Avenue and Forbes.com did just that, writing 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 is titled Declare Your Financial Independence.

And a few days ago, the Energy & Capital Site alos used the same phrase in an online commentary: Financial Independence Day. However, the piece merely outlines 55 trading rules and doesn’t get into the topic the way the Hub does.

The trend is clear and it seems from our vantage point that the next logical step is to use our contraction and call it Findependence Day!  It’s not exactly a new term any more: the original book bearing that name was published in 2008 (more about which  below).

So for those for whom the term may still be unfamiliar,what exactly is Findependence?

It’s simply a contraction for Financial Independence.

And Findependence Day? That’s the day you achieve Financial Independence. Continue Reading…

How “Findependence” differs from “Retirement”

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Road signs to savings and financial independenceHere’s my latest MoneySense Financial Independence blog, titled How ‘findependence’ differs from retirement.

This is of course the ongoing theme of the Financial Independence Hub, aka FindependenceHub, and the reason it’s not called the Retirement Hub.

For convenience and one-stop shopping purposes, the piece can also be found below: Continue Reading…

You think accumulating wealth was hard? Try this.

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By Doug Dahmer, Emeritus Retirement Income Specialists

Special to the Financial Independence Hub

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How you deploy your accumulated assets to fund the second half of your life is much harder than how you built them up in your accumulation years.

Read this again if you need to, but be sure you get this point.

 

First build an asset pool under the spell of “Dollar Cost Averaging over the long-term” — the favorite aphorism of the investment management salesperson. For the 30-odd years of your prime saving and accumulation years this mantra encourages you to keep giving money to them, disguises bad performance and promises you future success. Given enough time, however, let’s hope you have more than when you started.

That’s the easy part.

The hard part: making it last a lifetime

Continue Reading…

The parable of the twins (RRSP vs TFSA)

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By Robb Engen, Boomer & Echo

Special to the Financial Independence Hub

Fashionable girls twins walk in the street

There’s a popular story told by banks and financial authors to encourage people to start saving for retirement at an early age. It’s called the Parable of the Twins and it goes something like this:

One twin puts aside $3,000 every year into his tax-free savings account starting at age 22, and stops at 32 – never adding another penny to the account. His sister starts saving $3,000 annually at age 32, and continues until 62. Who has the larger nest egg?

Related: How much of your income should you save?

You know how this story goes by now. Assuming an annual return of eight per cent, the twin brother wins hands-down. He ends up with $437,320 in his TFSA, compared to his sister’s $339,850, even though he contributed $60,000 less than his sister.

It’s a ubiquitous tale, but one that resonated with me at a young age. I was drawn to the awesome power of compounding – how money grows exponentially over time. Continue Reading…

Financial planners and eldercare professionals targeting aging Boomers

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Real-estate agent giving house keys to senior couple

Here’s my latest MoneySense blog, which it titled Is your advisor retirement ready? It came out of a conference I attended in Niagara Falls last week: the National Elder Planning Issues Conference.  I had delivered the keynote address on why Longevity changes everything — a theme you’ll often see in the Hub’s Longevity & Aging section — but also sat in on a couple of sessions on which this blog is based. As you’ll see it’s also quite relevant to our Decumulation & Downsizing section.

For archival and one-stop shopping purposes, here’s the blog below, with a few photos and subheadings added: Continue Reading…