Tag Archives: Retirement

How to Prepare for Retirement as a Midwife

Midwives play a rather important role in maternal healthcare. They provide crucial support to expectant mothers before, during, and after childbirth. While the focus of midwifery is on delivering excellent care to patients, it’s equally important for midwives to have a financial plan in place for themselves. Here’s a look at how midwives can prepare.

Adobe Stock Image courtesy logicalposition.com

By Dan Coconate

Special to Financial Independence Hub

Retirement planning is a critical step in ensuring Financial Independence and peace of mind after years of dedication to a meaningful career.

For midwives, who are often focused on caring for others, planning for their own future can sometimes take a backseat. This guide emphasizes how to prepare for retirement as a midwife so that you can build a solid plan that focuses on future financial strategies, career development, and truly golden years.

Get Familiar with your Financial Landscape

To plan effectively for retirement, you need a clear understanding of your financial situation, goals, and needs. Start by calculating your current income, savings, and any existing retirement benefits. Many midwives work as independent contractors or part-time employees, which can often mean fluctuating income. Identify what portion of your earnings you can set aside monthly for retirement savings.

Review any benefits offered by your employer, such as pensions or retirement savings programs, such as 401(k). If these aren’t included, consider opening a traditional or Roth IRA. Understanding your financial opportunities and constraints will form the foundation of your retirement strategy.

Explore Savings Plans and Investment Opportunities

Midwives often face unique challenges in saving for retirement due to irregular salaries or periods of self-employment. That’s why exploring diverse savings plans and investment opportunities is critical.

Consider options, such as SEP IRAs, which allow self-employed midwives to contribute higher amounts than personal IRA plans. Diversifying investments can also bolster your long-term savings. Look into index funds, bonds, or low-risk mutual funds to create a balanced portfolio. Remember, the earlier you start, the more time your compounding interest will grow your nest egg. Continue Reading…

Was retiring 35 years ago at age 38 worth it?

By Billy and Akaisha Kaderli, RetireEarlyLifestyle.com

Special to Financial Independence Hub

During one of our private two-hour lunches, Akaisha brought up the topic: “Was retiring early at the age of 38 worth it?”

Wow! What a question.

We each have had our share of personal ups and downs in life – before and after we retired. It was a subject worthy of discussion.

Beaches, babes and boys in Boracay, Philippine Islands

If we had stayed in our careers until the “normal” twenty years of service in the corporate world, that would have us retiring in 2006 at the age of 54. This still would have qualified us for “early retirement” by most definitions. Assuming things would have been the same, financially we would be much better off had we continued working.

With a house and our cars paid for, living near a beautiful beach with great weather in California, a corporate pension, plenty of stock market assets and cash, it would seem that we would be wanting for nothing.

 

 

Lakeside treasure home, Lago Atitlan, Guatemala

Health wise, who knows? The stress of working high pressure jobs for those extra years most likely would have taken a toll on our physical health. And two decades later with the aches, pains and caution that ageing brings, would we still be as adventurous and willing to try new things in a retirement that was just beginning?

And then there is the question of whether or not we would still be together. Many of our friends are on their second marriages, and this could possibly have happened to us as well.

Of course these are all hypothetical notions as this is not the way it happened.

However, had we retired from the workplace in 2006 with a greater portfolio, “traveling in style, having the good life and livin’ large,” we would have been sitting pretty until the markets took one heck of a fall in 2008. With the S&P, Dow Jones Industrial Average and the NASDAQ all dropping over 38%, the shingles of our financial house would have been heartily shaken, making us ponder if we did the right thing by leaving work early.

Is there ever the perfect time to retire? And how do you know?

Experiences vs. Assets

Traveling the world for as long as we have, we have garnered a wide range of experiences and have tested our mettle. How do you put a price on first-hand education and thirty years of living around the globe? Continue Reading…

Financial industry’s forecasting is a mug’s game, especially under Trump

By John De Goey, CFP, CIM

Special to Financial Independence Hub

Around the middle of December, advisory firms and the people who work for them start putting out their retrospectives regarding the year that is just about to end and / or offer their forecast for the new year. I have long argued that forecasting is a mugs game. To the extent that I have grudgingly participated in the exercise previously, I have found it to be humbling. As such, I want to stress that what follows is not so much a forecast as it is a concern for what may – and I stress MAY – come to pass in light of what we already know about the incoming administration south of the border.

To begin, the President-elect is a criminal. He has literally been convicted of 34 felonies. This is in addition to two impeachments, various infidelities, an attempted insurrection, and the stealing of highly classified state secrets. We now have a good sense of what his cabinet will look like: assuming most of his forthcoming nominees are ultimately appointed. This is a man who is quite willing to appoint incompetent sycophants who will help him expand his ongoing criminal activity at the expense of more traditional character traits like relevant education, experience, and character. The notion of traditional public service seems to be foreign to many would-be cabinet appointees.

Will Trump manufacture a Recession?

Early in December, I was in Southern California and spoke with the founder of an AI company in Silicon Valley. He told me there is a theory making the rounds that Donald Trump intends to do something highly unconventional in his longstanding pursuit personal self-interest. The executive told me that a number of thought leaders are of the opinion that Trump intends to deliberately manufacture a recession immediately upon taking office.

Their view is that, given the experiences of both the global financial crisis and the COVID crisis, it has become apparent that when the economy is severely threatened and bailouts are required, billionaires and plutocrats end up doing very well. Meanwhile, ordinary middle-class people and those even lower on the social spectrum fall further behind.

In the aftermath of the election on November 5th, American capital markets responded favorably based on the presumption that lower taxes and less regulation would be highly stimulative and favourable for the economy. This view held sway even though the President-elect campaigned on a platform of indiscriminately-high tariffs, mass deportations, and a draconian cutting of government services via the department of government efficiency (DOGE).

There are some who fear that the promise to rein in the debt will be used as an excuse to cut back on government programs that ordinary Americans rely on. As it stands, approximately three quarters of all U.S. annual expenditures are fixed in law and allocated toward entitlements such as Medicare, Medicaid, and Social Security, as well as interest on the national debt.

Cutting US$2 trillion from the budget is simply impossible without encroaching on at least some of these programs. Stated differently, even if Trump were to cut all other programs (including the CIA in the SEC) to zero, the savings would still be less than the $2 trillion a year he pledged to cut. He will, of course, blame Joe Biden for “the mess he inherited” either way.

No fiscal Conservatives left in America

Meanwhile, the evidence shows that for over half a century, the U.S. accumulated debt has been growing under both major parties. It seems there are no fiscal conservatives left in America. Again, I stress, this is not a forecast, but rather a recounting of a narrative that several thoughtful people who live south of the border believe to be plausible. If you think wealth inequality and income inequality are a problem now, you could be in for a rude awakening if anything close to this narrative comes to pass.

As many people know, I have long been a proponent of efficient capital markets. Any person who espouses this view believes that prices reflect all available information to the point where it is impractical to think that mispricings are sufficiently large and identifiable so as to allow people to engage in trading that would allow that person to make material profit. The American stock market clearly does not subscribe to the narrative I’ve just outlined. Of course, consensus opinions can be wrong. In this instance, perhaps more than any other in my lifetime, I actively want the consensus to be correct. Continue Reading…

5 things you can do now to gain control over your financial future

By Billy and Akaisha Kaderli

Special to the Financial Independence Hub

No matter what goes on in the news, Washington or the world, to build a stable tomorrow, we must take control of our own lives. Even with all the current upheaval, here are five things you can do today to empower yourself.

Track spending

This is the number one most useful financial technique to implement today. Imagine if businesses did not track their expenses. How would they know the financial health of their enterprise? It is no different for you and me. It is paramount to know where your money is going and what percentage of your net worth you are spending.

Know your net worth

Assets minus Liabilities equals Net Worth. Place a value on everything you own and subtract what you owe. This figure is your net worth. Now divide how much you spent last year by your net worth number and you will have your percentage of spending to net worth. Continue Reading…

Hello 2025: Investing in the Zero Visibility Age

 

By Dale Roberts, cutthecrapinvesting

Special to Financial Independence Hub

While there is only one trading day left in 2024, it is clear that it is another year that fooled everyone. The year 2023 fooled economists and market prognosticators with U.S. stocks up over 26% in U.S. Dollars (and up more in Canadian Dollars). 2024 is shaping up as a carbon copy in performance and in big swing and miss predictions. Canadian stocks are looking to finish the year up over 20%. Good luck making predictions as we enter 2025: a zero visibility age. Trump economic ‘policy’ will likely shape the year. There’s just no tellin’ what will happen.

But before we move on to 2025, some Santa stock market rally housekeeping.

Here’s the history of Santa rallies from 2000 on Seeking Alpha.

As can be seen from the chart, a Santa rally has successfully occurred 18 times out of 24 in the 2000s. One year saw a flat performance, while five years saw a decline, including as recently as 2023.

But so far, Santa read the Trump economic policy and went back into Santa’s house to have a nice hot chocolate. Here’s the equal-weight S&P 500 (RSP), more representative of broader market sentiment.

Or maybe Santa went inside for something a little stronger, perhaps a few hot totties.

And more holiday fun …

Did a rally start last Tuesday? Who knows. True, US and Canadian markets took a big hit down yesterday  with the Dow down 418.5 points or 1% and Nasdaq fell 1.2% (Monday, Dec. 30th). But it doesn’t really matter it’s obvious that 2024 was a wonderful year for investors who stayed the course, stayed invested; for investors who stuck to their investment plan. The final returns for stock markets will simply be statistics for the record books.

Trumpenomics and 2025

In the Globe & Mail John Rapley did a nice summary of the battle between the Fed, bond markets and Donald Trump’s economic ‘policy’. I put policy in quotes because the incoming U.S. President’s platform is currently more threats than anything else.

Here’s a key paragraph …

But it now looks like the Fed may be girding for a battle with the administration, with some governors hinting that they’re beginning to factor the inflationary impact of his policies into their own projections. If they decide to counterbalance a loose fiscal policy with a tight monetary one, the economic prognosis may well change.

Translation: proposed Trump tax cuts and looser regulations will battle with inflationary tariffs and deportations. Add in crippling U.S. debts and deficits. The bond market has been moving rates higher. The stock market (other than the magnificent tech) is moving lower over the last month. Both stocks and bonds are repricing Trump. But Trump is like a box of chocolates – you don’t know you will get.

The zero visibility age

Ian McGugan (also in the Globe & Mail) frames why forecasts are likely to be wrong (again) in this zero visibility age …

The simple explanation for these forecasting failures is that the world has entered some very odd economic territory. Lingering effects of pandemic weirdness, manic exuberance around artificial intelligence and a surprising resurgence of strongman politics are helping to create a thick fog of uncertainty.

It’s a weird mix of optimism, fear and uncomfortable uncertainty that can make you make all kinds of strange (and uncomfortable screwed-up) expressions. Continue Reading…