Hub Blogs

Hub Blogs contains fresh contributions written by Financial Independence Hub staff or contributors that have not appeared elsewhere first, or have been modified or customized for the Hub by the original blogger. In contrast, Top Blogs shows links to the best external financial blogs around the world.

Wealthsimple moves its Robo Adviser service upmarket

Posted By |
Wealth simple founder and CEO Michael Kitchen

My latest Financial Post blog looks at Tuesday’s announcement by Wealthsimple of a new premium service it calls Wealthsimple Black. See Robo-adviser Wealthsimple targeting more sophisticated investors with premium service.

Wealthsimple Black is aimed at investors who have accumulated at least $100,000 in assets with them and brings down the previous annual management fee of 0.5% to 0.4%: a threshold previously reserved for those with $250,000 invested in the automated online investment service (popularly known as Robo Advisers).

The new “premium” service includes personalized financial planning, tax-loss harvesting, tax-efficient accounts and access to more than a thousand airline lounges around the world.

The company now calls the previous version of the service available to investors with less than $100,000 “Wealthsimple Basic.” It charges the 0.5% management fee but manages the first $5,000 for free, and provides automatic portfolio rebalancing and dividend reinvestment, plus “on-demand” advice from portfolio managers.

Wealthsimple is largely a company founded by and targeting Millennials but the new premium service makes it clear it won’t say no to more affluent investors, including soon-to-retire Baby Boomers who are shifting from wealth accumulation mode to so-called Decumulation. In a press release, Wealthsimple founder and CEO Michael Kitchen (pictured above) made it clear the company is now targeting not just young beginning investors but “all investors, no matter how far along they are toward reaching their financial goals.”

Introducing the inaugural winner of the Victory Lap Retirement [VLR] Award

Posted By |
Author Ernie Zelinski

Picking the first winner of the VLR [Victory Lap Retirement] Award was easy for me. Some might consider me a little biased, but how could I not give the award to my friend and mentor Ernie Zelinski?

After all it was Ernie’s books How to Retire Happy, Wild and Free and The Joy of Not Working that basically salvaged my life and gave me the courage to leave a 36-year banking career that was slowly killing me.

If I had read Ernie’s book earlier, I would have probably exited my corporate job even sooner than I did.

Ernie is an interesting guy, who learned early in life that he wasn’t cut out for the corporate world.

He’s a true free spirit, always has been, always will be and I just love his personal story. At the age of 29 he bailed (some might say was fired) from his job as a professional engineer. I say bailed because subconsciously we sometimes do things that will end up giving ourselves the result that we really want, as in “I know if I do this they will probably fire me” and in Ernie’s case they actually did.

In Ernie’s own words: “I Truly believe that had I not left corporate life, I would either be dead today, or suffering from some serious stress-induced illness.” Yours truly was also on this path. Thanks for showing me the way Ernie!

Continue Reading…

My RRSP playbook for 2017: Ready for prime time

Posted By |

Welcome to 2017.

The annual 2-month RRSP “season of madness” has arrived. I made my list, checked it twice so ready-set-go.

Understanding the RRSP regime makes it easier to stickhandle your planning marathon.
This workhorse has delivered on retirements since its intro in 1957, now a 60-year old boomer.

The RRSP has transformed over the years. For example, RRSP room carry forward was introduced in 1991. RRSPs really fit two groups of investors like a glove: those without employer pension plans and the self-employed.

Some investors still shun RRSP deposits. I see three solid reasons to pursue RRSP accumulations:

  • Long-term, tax-deferred investment growth.
  • Future withdrawals ideally at lower tax rates.
  • Contributions provide immediate tax savings.

Stay focused on how the RRSP dovetails into your total game plan. The power of tax-deferred compounding really delivers.

Your RRSP mission is three-fold:

  • Keep it simple.
  • Treat it as a building block.
  • The journey lasts a long time.

My updated RRSP playbook summarizes these seven vital planning areas:
Continue Reading…

How to avoid Fraud in your Retirement Plan

Posted By |

By Jeanine Skowronski

Special to the Financial Independence Hub

Believe it or not, your retirement plan can be at risk for fraud. In fact, in the 2015 fiscal year, the (US) Department of Labor closed 2,441 civil investigations into retirement plans and recovered US$696.3 million for direct payment to plans, participants and beneficiaries. Retirement fraud can occur in several ways: employees with access to your workplace benefits may skim from the top. Or, beyond that, you may be tricked into taking on risky or non-existent investments outside of your day job.

For businesses, avoiding fraud all comes down to implementing solid internal controls — that’s per the Internal Revenue Service, which actually has an Employee Plans Compliance Unit (EPCU). For consumers, it comes down to vigilance. Here are some personal finance insights to help you avoid fraud in your retirement plan:

1.) Check your Retirement accounts regularly

Most employees set up their employer-sponsored 401K account and forget it. Or they give their quarterly statements a passing glance before chucking them aside. (Note: It’s important to shred all sensitive financial documents before discarding.) However, failing to log into your account regularly means you’re missing out on spotting potential red flags.

Continue Reading…

3 simple techniques for overcoming financial stress in Retirement

Posted By |

Senior Couple Were Disappointed While Reading Letter On TableBy Leigh Marcos

Special to the Financial Independence Hub

We all look forward to retirement: complete freedom. We can do what we want, when we want, and don’t have to traipse into an office every day to join the rat race that dominates younger people’s lives.

Unfortunately, the transition to not working can come with a different set of pressures, not least the financial stress triggered by your drop in income. Current statistics show that 68% of working-age people in the U.S. don’t participate in an employer-sponsored pension plan, so this is a common anxiety that affects much of today’s retired populace.

Luckily, there are ways to combat financial stress and still relish what should be some of the most enjoyable years of your life. Here are three simple steps to help you do so:

Value yourself, and act like it

All too often, the change of routine involved in retiring after a lifetime of work can cause us to drift into a kind of daily limbo where time starts to lose meaning, and so as a consequence does our everyday life. Combat this lack of direction by actively redefining who you are without your job. What do you stand for? What do you still want to achieve? What do you enjoy doing? How do you spend your time? Take some time to reflect on these questions: brainstorming can help, as can physically writing things down or discussing them with a friend.

Make sure to avoid isolation by getting involved in regular, structured activity that enriches your life and brings you into contact with people who have a positive influence on you. This will help you keep financial worries in perspective and remind you that there are other important and valuable things in life.

Stay healthy

Continue Reading…