Most investors think dividends are one of the safest and smartest ways to create retirement income.

But are they really?

Ordinary dividends have some significant drawbacks that are often overlooked:

• They’re a forced withdrawal you don’t control
• They can create unnecessary taxable income
• They can increase OAS and GIS clawbacks
• Dividend portfolios are often concentrated in slower-growth sectors
• They can cause you to miss many of the world’s best growth companies

There’s another option: self-made dividends.

Instead of relying on companies to decide when and how much income you receive, you create your own cash flow by selling small portions of a broadly diversified, total-return portfolio.

In my latest article, I explain why self-made dividends are better than ordinary dividends in every way — from taxes and diversification to flexibility and control.

CLICK THE LINK BELOW TO READ THE ARTICLE BY JOANNA LEWIS 

Ed Rempel, CFP, Explains Why Self-Made Dividends Are Better Than Ordinary Dividends, In Every Way

For decades, income-focused investors and retirees have treated ordinary dividends as the holy grail of financial security. The narrative seems simple and comforting: buy shares in established blue-chip companies that pay reliable dividends, collect the quarterly payouts, and live off the yield without ever touching the capital. However, Ed Rempel CFP, Toronto, argues that relying strictly on traditional dividend-paying stocks is an old and heavily flawed income strategy for modern investors. Instead, a comprehensive analysis of portfolio mechanics reveals that self-made dividends (generating predictable cash flow by selling small portions of a broadly diversified, total-return growth portfolio) are superior to ordinary dividends in every measurable way.

To evaluate both investment methods, financial analysts point to how share prices behave on distribution dates. When a corporation issues a cash dividend, the company’s stock price decreases by the exact amount of the payout on the ex-dividend date. In practical terms, an ordinary dividend functions as an automatic, mandatory withdrawal of capital, determined by corporate executives rather than the individual investor.

“Dividends are not ‘free money,” says Rempel. “When a company pays a dividend, the stock price drops by the exact amount of the dividend on the ex-dividend date. Dividends are just a forced cash withdrawal.”

Conversely, self-made dividends operate by holding a portfolio optimized for global market expansion and selling off precise dollar amounts on a monthly or quarterly basis using a Systematic Withdrawal Plan (SWP). This shifts the primary investment goal from immediate yield generation to total portfolio return, providing investors with complete authority over the timing and size of their distributions.

A primary drawback of traditional dividend strategies involves taxation. When corporations distribute dividends, investors incur taxable income in that calendar year, regardless of whether they require the liquidity. For high-earning individuals or retirees, eligible and non-eligible dividends can inflate taxable income due to Canadian gross-up formulas, potentially triggering higher marginal tax rates and benefit clawbacks, such as the Old Age Security (OAS) or Guaranteed Income Supplement (GIS).

By contrast, self-made dividends help investors control their taxable event. Because liquidating a portion of an investment yields a return of original capital with capital growth, only the capital gain portion is subject to taxation. In Canada, where capital gains receive favourable tax treatment compared to ordinary income or grossed up dividends, this structure minimizes overall tax liability.

“In your retirement plan, it is actually cash flow that you need, not income,” says Rempel. “Income is taxable. Cash flow is sometimes taxable and sometimes not. Self-made dividends give you the cash flow you want in your retirement, while having only a small portion of it be considered taxable income.”

For instance, if an investor holds a portfolio that has doubled in value from $500,000 to $1,000,000 and requires $40,000 in annual retirement income, selling $40,000 worth of shares results in $20,000 of returned capital (tax-free) and $20,000 of capital gains. Under standard tax rules where 50% of capital gains are taxable, only $10,000 enters the investor’s taxable income calculation for the year.

Beyond tax considerations, financial advisors highlight severe sector concentration as a major risk associated with dividend-focused portfolios. In Canada, high-dividend mutual funds and exchange-traded funds (ETFs) remain heavily weighted in Canadian stocks, as well as cyclical, lower-growth industries like telecommunications, utilities, energy, and financial institutions. Consequently, investors who filter strictly for dividend yield routinely exclude major international growth sectors, particularly global technology, healthcare, and broad-market innovations.

Focusing strictly on yield can also lead investors into “dividend traps”, holding mature or financially strained companies that maintain high dividend yields to attract capital despite stagnant earnings. Should market conditions deteriorate, corporations can reduce or eliminate payouts, disrupting an investor’s income stream.

Rempel notes that a total-return approach avoids these constraints by enabling broad geographic and sector exposure without requiring individual companies to pay dividends.

“Smart investors never pay extra for dividends on their investments,” Rempel emphasizes, citing legendary investor Warren Buffet’s view that investors should remain agnostic about dividends. “Invest based on fundamentals like risk, return, and growth potential, and invest for the highest, reliable long-term total return after tax.”

This is the key point. The long-term success of your investing and retirement plan is based on the highest, reliable long-term total return after tax. Whether or not there is a dividend payout is a minor technical heavier tax factor.

From an operational standpoint, financial planners emphasize that self-made dividends offer a level of flexibility that corporate dividends cannot match. Retirees can set exact monthly distributions to match their budget, increase withdrawals for major expenses, or pause cash flows entirely during years when secondary income streams are sufficient.

By prioritizing total return over dividend yield, investors retain full ownership over their financial plan, insulating their cash flow from corporate board decisions while maximizing long-term portfolio growth.

Ed

The post iWatchMarkets article: Ed Rempel, CFP, Explains Why Self-Made Dividends Are Better Than Ordinary Dividends, In Every Way appeared first on Ed Rempel.

A practical, emotionally grounded guide to sorting out post-separation debt, protecting cash flow, and rebuilding one clear step at a time.

The debt is not your identity

There is a specific, heavy feeling that can come with debt after a separation. It is not just financial. It is emotional, personal, and often tied to grief, fear, anger, uncertainty, and pure exhaustion.

You log into your banking app and see a negative balance. Credit cards are higher than you expected. Legal fees keep adding up with every email. Maybe debt that used to feel shared now feels like yours alone to carry.

In those quiet moments, the numbers can stop feeling like numbers. They can start sounding like a personal judgment:

·       I completely messed up my life.

·       I should have seen the warning signs.

·       How did I let myself get here?

This is the trap of post-separation finances. A balance on a screen can start to feel like a story about your worth. But a negative balance does not make you a negative person. Debt is a math problem that needs a timeline. It is not a verdict on your character, your future, or your ability to rebuild.

Infographic: Post-separation debt becomes easier to manage when it is separated into practical categories.

The core shift: from shame to structure

Debt that builds up during a separation is often caused by the situation itself, not by poor character or a lack of effort. Legal fees, two households, moving expenses, frozen accounts, delayed support payments, and unclear joint liabilities can all hit at the same time.

The most important shift is this: stop treating debt like a moral failure and start treating it like a problem that needs structure. Shame leads to avoidance. Structure gives you options.

Breaking it down: three types of post-separation debt

Try not to lump everything into one scary total right away. First, understand what each balance actually represents. Then decide what needs legal separation, what needs repayment prioritization, and what needs a realistic cash-flow plan.

Example: Carla’s survival bridge

After her separation, Carla went through a very difficult ninety-day period where her household income dropped by roughly 60%. She used her credit card for groceries, utilities, and basic supplies for her children. At first, she saw the balance as proof she had failed.

Once she separated the debt into categories, the story changed. This was not lifestyle debt. It was survival debt. She had used credit as a temporary bridge to keep her household stable. That did not erase the balance, but it did remove the shame that was making it harder to face.

Why panic is your most expensive mistake

Debt can make everything feel urgent. But urgent feelings do not always lead to the best financial decisions. Panic can push people to avoid statements, accept payment terms they cannot sustain, borrow at worse rates, or fight expensive legal battles for emotional relief instead of practical progress.

Infographic: Panic multiplies pressure. Structure creates a repeatable next step.

The audit: face the numbers without the noise

Before making extra payments, create a clean debt list. Do not start with one overwhelming total. List every liability separately so each balance can be handled with the right strategy.

Once the information is visible, the debt often feels less frightening. It may still be serious, but it is no longer vague or endless. It has names, rates, payments, and possible timelines.

Example: Jason’s ‘infinite’ debt became finite

Jason was convinced his debt was impossible. Because he had avoided the statements for months, his mind filled in the blanks with worst-case numbers. When he finally built a debt list, the total was about $16,000: two credit cards, a legal balance, and a line of credit. It was not easy, but it was knowable. Once it was knowable, he could make a plan.

Four post-separation blind spots to watch for

Five rules for regaining financial control

Infographic: The sequence matters. Stabilize first, then accelerate.

1. Perform financial triage first

Separate joint and individual finances before making aggressive payments. Pull credit reports from both Equifax and TransUnion, identify every shared liability, and contact financial institutions to freeze, close, or require two signatures on joint credit where possible.

2. Secure your base camp

Protect the basics first: housing, food, utilities, insurance, childcare, and transportation. A debt plan that leaves no room for real life usually pushes people right back into credit.

3. Choose one repayment method

Use the debt snowball if early wins will help you stay motivated. Use the debt avalanche if you want the most mathematically efficient route and can stay consistent. The best method is the one you can realistically follow for the next six months.

4. Lower the temperature on legal fees

Do not ignore legal bills. Ask whether a structured monthly payment plan is available. Many firms are used to working with clients who are navigating financial transitions.

5. Enforce a no-new-damage policy

Stop the bleeding. Remove saved cards from online accounts, keep credit cards out of daily reach, and use debit or cash for discretionary spending while the plan stabilizes.

Snowball or avalanche? A practical example

A simple 30-day reset plan

This is a season, not a sentence

Rebuilding after separation is rarely a straight line. Some months will feel slow. Unexpected expenses may still come up. That does not mean the plan has failed. Financial recovery is less about doing everything perfectly and more about staying consistent.

Post-separation debt can carry a lot of guilt, anger, grief, and fear. But it can also be seen as a record of a chapter where you had to make hard choices under pressure. It may show what it cost to get through the transition. It does not have to define what happens next.

Example: Daniel’s financial reset

Daniel left his marriage with credit card debt and legal fees. For months, he avoided the mail because every envelope felt like proof of failure. His turning point came when he changed the rule: “I am allowed to have debt. I am not allowed to avoid it.”

He opened the statements, automated minimum payments, and used the snowball method. The debt did not disappear overnight, but the fear started to shrink because he had a process. His confidence started to come back before the balances were fully gone.

Client checklist: debt after separation

·       I have listed every debt separately.

·       I know which debts are joint and which are individual.

·       I have pulled or requested both Equifax and TransUnion credit reports.

·       I have contacted institutions about freezing, closing, or restricting joint accounts.

·       I know my baseline monthly survival costs.

·       I have chosen either snowball or avalanche for the next six months.

·       I have a no-new-damage rule for discretionary credit use.

·       I have asked for advice before withdrawing registered assets or changing mortgage debt.

— Sabiha

The post Debt After Separation: How to Regain Control Without Panic appeared first on Ed Rempel.

As equity investors, we put our money into companies through the stock market because we believe in the power of innovation, competition, and long-term growth.

But for the stock market to deliver strong returns over time, we need economic freedom and free enterprise.

When people can freely start businesses, invest, trade, hire, and compete without excessive government barriers or favoritism, capital flows to the best ideas, companies create real value, and investors are rewarded with compounding wealth.

Without that freedom, markets become distorted, innovation slows, and returns suffer. That’s why defending economic freedom isn’t just good policy – it’s essential for anyone who owns stocks or wants a prosperous future.

Yet stubborn myths keep blaming free markets for problems and pushing more government control. These stories ignore the hard numbers. Here’s the truth about the seven biggest myths, backed by the clearest evidence.

I constantly read books. “The Triumph of Economic Freedom” by Phil Gramm & Donald Boudreaux is a wonderful eyeopener! I believed a couple of these myths.

Read the book to see the evidence is clear.

You will learn:

• Why economic freedom and free enterprise are essential for strong, long-term stock market returns and widespread prosperity.
• How persistent myths blaming free markets for society’s problems distort history and policy.
• The real evidence showing how free markets – not government intervention – have driven the greatest gains in living standards in human history.
• Practical reasons why protecting open markets benefits investors, workers, and families alike.

Myth 1: The Industrial Revolution made workers poorer and more miserable.

People still picture dark factories and ruined lives in the 1800s. The facts say otherwise. Real wages (after inflation) for ordinary workers more than doubled in Britain between 1840 and 1900. Life expectancy jumped (men from about 40 to 48 years, women from 42 to 52). Literacy soared. People chose factory towns over farms because pay and opportunities were better. This was the start of the greatest rise in living standards in human history.

For nearly all of human history before the 1800s, living standards were essentially stagnant. The industrial revolution in the 1800s in Britain and the United States marked the most transformative and historically unprecedented improvement in living standards up to that point – and the foundation for all subsequent gains.

Myth 2: Robber-baron monopolies jacked up prices until antitrust laws saved consumers.

The story claims big oil and steel companies crushed rivals and gouged buyers until the government stepped in. Look at the actual prices. When Standard Oil began in 1870, kerosene cost 26 cents a gallon. By 1885 it had fallen to 8 cents, and by the 1890 Sherman Antitrust Act it was down to just over 7 cents. Steel-rail prices dropped 30% from 1870 to 1880 and then another 53% by 1890. Output in these industries grew faster than the rest of the economy, and prices fell faster than the overall price level. After the regulations hit, many rates (especially rail shipping) actually rose.

Antitrust laws were supposed to prevent monopolies from gouging consumers, but in reality, have mostly been used to protect weaker competitors and keep prices higher, not to deliver lower prices to consumers.

“Based on 90 years of hard evidence that reveals the overwhelming failure of this regulation, a bipartisan consensus was reached … in the 1970s and 1980s to bring that regulatory approach to an end.” It was finally repealed or reformed to focus only on clear harm to consumers.

Myth 3: A stock market crash caused the Great Depression & big government cured it.

Greedy markets crashed the economy; only heavy intervention fixed it. The evidence points the other way. A normal market downturn turned into a catastrophe by policy errors.

The Great Depression was prolonged into a decade of high unemployment primarily by government and central bank policies. The Federal Reserve allowed the money supply to shrink by about one-third between 1929 and 1933 while failing to act as a lender of last resort during bank panics and runs – causing thousands of bank failures and a severe credit crunch. Then, the Smoot-Hawley Tariff Act of 1930 raised tariffs sharply, triggering retaliatory trade barriers worldwide that crushed exports and international commerce. Finally, the New Deal’s interventions—such as wage controls (preventing wage cuts needed for adjustment), pro-union regulations that raised labor costs, and other price/wage rigidities – made it far more expensive and risky for companies to hire workers, discouraging job creation and slowing recovery for years. Unemployment remained extremely high – close to or above 20% for much of the 1930s.

These policy errors caused the longest and deepest depression in U.S. history.

Fed official Ben Bernanke later admitted the truth to Milton Friedman: “Regarding the Great Depression. You’re right, we did it. We’re very sorry. But thanks to you, we won’t do it again.” Tariffs, wage controls, and prolonged interventions created the pain and made it last a decade.

Free markets did not fail – policy errors did.

Myth 4: Free trade hollowed out American manufacturing.

Imports, especially from China, supposedly killed factory jobs and left the country weak. The numbers show manufacturing is still strong. U.S. industrial production capacity sits at all-time highs – well above levels from decades ago. Output has kept rising even as employment shifted. A careful study found that 88% of the manufacturing job losses from 2000 to 2010 came from productivity gains and better technology, not trade. We make more goods with fewer workers because machines and methods have improved.

Consumers enjoyed lower prices, and the country’s manufacturing industry – factories, machines, equipment, and infrastructure – grew dramatically.

Myth 5: Deregulation caused the 2008 financial crisis.

Wall Street ran wild without enough rules. Government policies fueled the fire. Easy money from the Federal Reserve, pressure on banks to make riskier home loans, and the special role of Fannie Mae and Freddie Mac created the housing bubble.

Government mandates on low-income lending rose steadily, requiring 30–40% of loans to be for low/moderate-income borrowers in the early 1990s. In the 2000s, this was pushed to 50–55%+, with tougher subgoals for very low-income borrowers. These quotas, especially via Fannie and Freddie, drove riskier subprime lending.

The crisis was not the result of free markets left alone; it was the result of distorted incentives created by public policy.

Myth 6: Income inequality is exploding under capitalism.

The rich race ahead while everyone else falls behind. Official figures hide the full picture. Census data claim the top 20% earn 16.7 times more than the bottom 20%. However, the official stats ignore 88% of the government programs for the poor. Once you count all government transfers (food stamps, Medicaid, housing aid, tax credits – most of which the Census ignores) and subtract taxes paid, that gap shrinks to about 4 times.

A significant factor in the income difference is that in the bottom 20% of households, only about .3-.5 people per household are working. In the top 20%, on average 2.0 people per household are working.

When poverty is measured properly – counting all government transfers that the official Census largely ignores – the deep or “intense” poverty rate (the kind involving real material hardship) falls to roughly 2–3% of the U.S. population.

The most visible and persistent cases of extreme hardship today, such as chronic homelessness and street poverty, are disproportionately driven by severe mental illness, drug addiction, and related issues (often co-occurring), not widespread material destitution or large traditional slums. Studies consistently show 30–70%+ of the chronically homeless population struggles with these problems, which create barriers to stability even when aid is available. This is very different from the mass urban poverty or shantytowns many people imagine from history or other countries.

Real income after inflation for the bottom fifth, including transfers, has risen roughly 300% since the 1960s, faster than the gains at the top. Consumption and material living standards for the bottom 20% are much closer to middle quintiles than official income numbers suggest.

Markets create wealth that is then shared through both wages and transfers.

Myth 7: Poverty remains stubbornly high because capitalism fails the poor.

Markets leave millions trapped with no way out. Adjusted numbers tell a different story. The official poverty rate hovers around 11–12% because the government refuses to count most of the $2.8 trillion in annual transfer payments as income. Include those benefits and the poverty rate falls to 2–3%. The remaining hard cases are mostly people struggling with addiction or severe mental illness whom the programs cannot easily reach.

Lower-income Americans today have far better housing, cars, appliances, and medical care than previous generations. Economic freedom reduces poverty by creating jobs and lowering the cost of everyday goods.

Free Enterprise Built Our High Living Standards

Every one of these myths collapses under the data. When people can freely invent, invest, trade, and compete, wages rise, prices fall, and ordinary lives improve. The stock market is one of the purest expressions of that system—it lets millions share in the gains.

Government overreach – through bad money policy, protectionism & tariffs, price-raising regulations, or distorted incentives – creates or worsens the very problems it claims to solve. Our comfortable modern lives exist because of economic freedom, not despite it. Protect that freedom, keep markets open, and living standards will keep climbing for the next generation.

Conclusion: Invest in the Future of Freedom

From my own experience seeing the full finances of thousands of people, the people with money are usually the ones that invested in stock market “equity” investments or in their own businesses.

By embracing economic freedom, we create the conditions for innovation, growth, and opportunity. As equity investors, we can all benefit by putting capital to work in the stock market – backing the companies that deliver better products, more jobs, and higher living standards – and participating in their growth. When free enterprise thrives, your portfolio and society both win. Protect that freedom, invest confidently, and help build a more prosperous world for everyone.

Ed

The post Why Economic Freedom and the Stock Market Make Us All Richer appeared first on Ed Rempel.

The Habit That Builds Wealth Not the Amount

A -friendly guide to using your first corporate paycheque with confidence, clarity, and a system that protects your future self.

The first paycheque is exciting. The real opportunity is what you automate before lifestyle creep takes over.

Your First Paycheque: What Actually Matters

There is a moment you will never forget. You open your banking app, the screen loads, and there it is: your first real corporate paycheque.

For a second, you feel completely unstoppable. You worked for this. You survived the interviews. You earned this. You are finally stepping into the driver’s seat of your own life.

Then the real-world math hits: rent, groceries, phone bill, Wi-Fi, transportation, maybe a student loan payment. Suddenly, the number that felt big starts to feel smaller.

The 10% Rule: A Small Act of Self-Respect

Before you stress over complicated spreadsheets, restrictive budgets, or tracking every single coffee, start with one simple move: save 10% of every paycheque from day one.

• Not when you make more money.
• Not when life finally settles down.
• Not when you finally feel ready.
• Right now.

This is not only about the math. It is about the psychological message you send yourself: “My future matters just as much as my current bills.”

A 10% cut is small enough that you won’t even notice it’s gone, but meaningful enough to create real momentum over time. If 10% is too much at first, start with 5% or even 2% and increase it with each raise. The most important part is starting the habit.

Automating the first 10% turns saving from a monthly decision into a default setting.

Two Paths: Same Income, Different Futures

Let’s look at two people who started at the same starting line.

Profile 1: Aisha – The Quiet Saver

• The setup: Aisha gets her first full-time job at 22. Her take-home pay is $3,600 per month.
• The move: She sets up an automatic transfer so $360 moves to a separate savings or investment account the morning her pay hits.
• The lifestyle: She still goes to concerts, travels on long weekends, and orders takeout when it fits her spending plan.
• The result at 27: She has an emergency fund, a growing investment account, and the confidence that she can handle a curveball.

Profile 2: Jason – The “I’ll Save Later” Strategy

• The setup: Jason has the same job, same company, and same $3,600 per month take-home pay.
• The move: He genuinely wants to save, but every month life happens: a weekend trip, a phone upgrade, a nicer apartment, and a few more subscriptions.
• The mindset: He tells himself he will start investing when he gets the next promotion.
• The result at 27: He has no savings, a credit card balance that never quite hits zero, and a background anxiety that he is falling behind.

The Real Paycheque Breakdown

Here is an illustrative example for someone earning roughly $70,000 per year and taking home about $3,800 per month after income tax and payroll deductions. Actual take-home pay will vary by province, benefits, pension contributions, and personal tax credits.

The point is not that every person should use these exact numbers. The point is the order: pay your future self first, then make the remaining money fit your real life.

Where to Put Your 10%: The Three Pools Strategy

Do not leave your 10% sitting in the same chequing account where you spend from. If it sits there, it is too easy to accidentally spend it.

Instead, divide your savings into three pools based on when you will need the money. The timeline matters because short-term money should be kept safer, while long-term money may have more room to grow.

Pool 1: Short-Term Goals – 0 to 2 Years

• Purpose: Emergency fund, sudden travel, moving costs, or near-term purchases.
• Where it fits: High-interest savings or cash-equivalent options.
• Why: You cannot risk the stock market dropping right before you need the money.

Pool 2: Medium-Term Goals – 2 to 5 Years

• Purpose: A down payment, wedding, relocation, or major life transition.
• Where it fits: FHSA if eligible, TFSA where appropriate, and a more conservative or balanced approach.
• Why: You may want growth, but you still need a smoother ride than a full equity portfolio.

Pool 3: Long-Term Goals – 5+ Years

• Purpose: Financial independence, long-term investing, and serious wealth building.
• Where it fits: TFSA, employer retirement plan, RRSP where suitable, or long-term investment account.
• Why: If you do not need the money soon, you may be able to ride out market ups and downs and benefit from compounding.

Two Mental Frameworks to Protect Your Cash

1. The 24-Hour Rule for Impulse Buying

To protect your lifestyle cash from quick-tap payments, social media ads, and emotional spending, use the 24-hour rule. See something you love online? Add it to your cart, close the tab, and walk away for 24 hours.

If you still want it tomorrow and it fits your guilt-free spending cash, buy it without shame. You may be surprised how many impulse purchases lose their appeal once the dopamine spike fades.

2. How to Handle a Raise

What happens when you kill it at work and your monthly take-home increases by $300, you have a choice. You can let lifestyle creep absorb the entire raise, or you can split the difference.

By splitting every raise, you upgrade your current lifestyle and accelerate your future at the same time.

What Actually Matters vs. What Is Hype

Your Next Move

Your first real paycheque is not going to buy a house or fund a permanent beach vacation tomorrow. But the psychological muscle you build right now can determine whether you feel financially stressed five years from now or completely in control.

You do not need a massive executive salary to build a massive future. You need to protect the first slice of every paycheque, divide it cleanly by timeline, automate the transfers, and let time do the heavy lifting.

Be like Aisha. Give your future self respect, put your wealth on default, and spend the rest completely guilt-free. You earned it.

What’s Next

In the next breakdown, we are replacing old-school budget rules with a cash-flow framework that works for real life. No restriction, no guilt – just a system that lets you spend on the things you love while still getting ahead.

Disclaimer

This article is for general educational purposes only and should not be treated as investment, tax, legal, or personalized financial advice. Investment choices, registered account eligibility, savings rates, and cash-flow priorities depend on your income, province, debt, benefits, goals, and risk tolerance. Speak with a qualified professional before making major financial decisions.

— Sabiha

The post Your First Real Paycheque: A Smart Money System for Young Professionals appeared first on Ed Rempel.

He has nearly $1 million invested, a $1.5 million debt-free home and an employer pension, but he is still significantly short of what he would need to fully fund the retirement lifestyle he wants.

What makes his situation especially interesting is the number of different paths available to him.

In the article, I look at:

• Why he is significantly short of his desired retirement, and the very different options he has to close the gap.
• When he should access his RRSP, employer pension, CPP and OAS, based partly on the projected rates of return from each decision.
• Why taking his employer pension about 10 years earlier may make sense, even though the annual pension would be less than half as much.
• How he can structure his withdrawals to try to stay in the lowest tax bracket possible.
• Why delaying his property taxes in B.C. is probably not worthwhile for him.
• Whether leaving his $1.5 million home to his children should really be the priority.
• How to get the least expensive financial plan that actually helps you make these decisions, and why a real financial plan needs to be interactive.

Kevin has enough resources to create several possible retirement futures. The important question is deciding which future he actually wants to live.

CLICK THE LINK BELOW TO READ THE ARTICLE BY MARY TERESA BITTI:

Everything changed when Kevin’s wife died. He now wants to retire next year, at 54, but can he afford to?

Kevin* has reprioritized life choices since his wife passed away recently. “We spent a lot of time delaying everything we wanted to do. All of those plans have disappeared.” 

Kevin is now ready to make new plans. Specifically, he would like to retire next year, when he turns 54, to spend as much time as he can with his two children, who are both in university. “I haven’t decided what retirement will look like. I’ve never stopped working. I may decide to take a part time position, but I don’t want to have to work fulltime anymore.”

Kevin earns $135,000 a year before tax. His annual expenses are between $40,000 and $45,000. His target annual income in retirement is approximately $80,000 before tax. If he does choose to work part time, he expects he’ll be able to earn about $20,000 a year before tax. 

His hybrid employer contribution-defined benefit pension will pay a minimum of approximately $30,000 a year at 65. He can take it as early as age 55, but it would be reduced to less than half per year. When his wife died, Kevin claimed the one-time death benefit of $2,500. He also receives a Canada Pension Plan Survivor benefit of $8,000 a year. 

He is trying to decide when to take his employer pension, CPP and Old Age Security to ensure he has the cash flow he needs, while maximizing tax efficiency and government benefits. 

Kevin lives in British Columbia, is debt-free and owns a home valued at $1.5 million. He has no immediate plans to downsize. Ideally, he would like to leave the home to his children as their inheritance.

His investment portfolio is valued at $900,000 and includes $700,000 in registered retirement savings plans invested in bank-managed growth oriented mutual funds, $150,000 in a tax-free savings account invested in a low-fee managed portfolio ($130,000) and equities ($20,0000). He also has an unregistered account with $20,000 invested in individual stocks and $30,000 in cash equivalents.

He plans to start working with a retirement planner, but would like advice on how to go about choosing a credible advisor. “What questions should I ask? Should I hire a fee-only advisor? Or should I use the financial planning services offered by my bank?”

While he wants to enjoy life now, Kevin is concerned about ensuring his savings will last throughout his lifetime.  He’d like his retirement income plan to extend to age 95 and end up with zero.

“How much can my portfolio safely generate each year? Is it reasonable to attempt to retire comfortably but responsibly next year? What is the best scenario in terms of when to start drawing from RRSPs, take my employer pension, CPP and OAS, keeping in mind the ceiling for combined CPP (survivor and personal)?” he asked.

“Are there tax strategies I can take advantage of? I’ve heard of delaying property tax as a strategy in BC. Will I be able to leave the family home to my children?”

Financial Plan

“How much can my portfolio safely generate each year? Is it reasonable to attempt to retire comfortably but responsibly next year?

To fully retire next year, Kevin would need about $1.4 million in investments. He is projected to have about $960,000, so he is 31% or $440,000 short of his desired goal.

If he would work part-time earning $20,000/year until age 65, he would need about $1.2 million by next year, so he is still 19% short.

He has a variety of life options to achieve his desired retirement income, such as working full-time until age 59, working full-time to age 58 and then part-time to age 65, downsizing his home so he can invest $450,000 more, or retiring next year with only $64,000/year income.

Having a full financial plan and interactively looking at all his options should help him decide which of these possible future lives he wants to live.

Questions:

Portfolio allocation

Kevin’s investments are about 67% equity and 33% fixed income. The fixed income is in the cash equivalents and portions of his 2 managed portfolios. His expected return over time is expected to be about 6.76%/year. He would only be $270,000 or 22% short if he invested all in equities.

His hybrid employer contribution-defined benefit pension will pay a minimum of approximately $30,000 a year at 65. He can take it as early as age 55, but it would be reduced to less than half per year.

His hybrid employer pension plan likely earns a lower return than his investments, so it is best for him to start his pension when he retires, even if it is less than half of what it would be at age 65. That would allow his investments to continue to grow for 11 more years.

What is the best scenario in terms of when to start drawing from RRSPs, take my employer pension, CPP and OAS, keeping in mind the ceiling for combined CPP (survivor and personal)?” he asked.

Deferring CPP from age 60 to 65 gives him an implied return of 10.4%/year on investments they would have to withdraw to provide the same income. Deferring to age 70 gives him an implied return of 6.8%/year. Since his investments are about 2/3 equity investments, they should provide roughly the same as 6.8% while giving him more flexibility with his income, but would be quite unlikely to beat 10.4%. It is probably best for him to start CPP and OAS at age 65.

He would likely still get about 75% of the maximum CPP if h retires next year. He should only lose a small amount of his CPP survivor benefit when he starts his own CPP at age 65.

“Are there tax strategies I can take advantage of?

He could optimize his tax rate on withdrawing his taxable income if he withdraws less from his RRSPs and more from his non-registered investments or his TFSAs to target a taxable income after he retires of $58,000/year. If he can do that, all his income will be taxed at 22% or less. If he withdraws the same proportion from each of his accounts, his taxable income would be about $71,000/year, so he would need to withdraw a smaller percentage from his RRSP and larger from his non-registered investments or TFSA.

He should ideally not withdraw from his TFSA and continue to maximize it every year, using his non-registered investments both for cash flow and for TFSA contributions. He should completely deplete his non-registered investments before touching his TFSA, since it is all tax-free.

I’ve heard of delaying property tax as a strategy in BC.

It is not worthwhile for Kevin to delay his property tax, especially with the new changes for 2026. The interest rate has been increased from prime -2% to prime +2%. With prime today at 4.45%, he would be charged 6.45% interest. If he withdrew less from investments and deferred his property tax, the investment return is a similar amount but he would have to pay tax on it.

In addition, there is some administration and they put a lien on his property, which can limit his ability to use his home for any other type of financing.

A less expensive and more flexible option is to just put a secured credit line on his home. That is usually at prime +.5% and can be borrowed and repaid any time. It can also be used in any amount and for any reason.

Will I be able to leave the family home to my children?”

If Kevin can make his retirement plan work without using his home equity, then he can leave that for his children. He is significantly short of his goal and has $1.5 million equity on his home, so he can retire far more comfortably if he accesses his home equity in some way. He can have the retirement he wants just by downsizing his home or borrowing against his home equity either to spend or to invest. He would need professional advice, discipline and a plan if he wants to consider accessing his home equity.

It may sound nice to him to leave his home for his children, but if he lives an average lifetime, his kids will likely be almost retired and grandkids likely adults before he passes away. His home equity would be a one-time bonus at that point in their lives. Meanwhile, Kevin could retire far more comfortably if he accesses his home equity in some way to improve his lifestyle. He has $1.5 million in equity. It’s worth thinking through what is important to him.

He plans to start working with a retirement planner, but would like advice on how to go about choosing a credible advisor. “What questions should I ask? Should I hire a fee-only advisor? Or should I use the financial planning services offered by my bank?”

Kevin needs a real financial plan, which is really a life plan for him, to make the right decisions now. He is significantly behind his retirement goal and has a variety of life & financial options to give him the life he wants. A real plan should allow him to interactively look at each of these options to see how they work out to decide what is best for him. Work longer, work part-time, retire on less, downsize, access his home equity, and many other options.

Usually, only a fee-for-service financial planner or fee-only financial planner does this type of interactive financial plan. His free financial plan is usually worth what you paid for it. My insight here from experience is that the cheapest financial plan is the one you actually pay for. The financial and life benefits to Kevin from making these decisions right over his life could easily be 10 times or more the cost of a professional interactive financial plan.

Ed

The post National Post article: Everything changed when Kevin’s wife died. He now wants to retire next year, at 54, but can he afford to? appeared first on Ed Rempel.

A guide to achieve continuity, clarity, tax efficiency, and family harmony.

Beyond the Will: How Canadian Couples Can Use Trusts to Protect Each Other

Most Canadian couples believe their estate plan is complete once they have wills, powers of attorney, and beneficiary designations in place.

Those documents matter, but they do not always solve the questions that create real stress later:

• What happens if one spouse loses capacity?
• Will the survivor have immediate access to funds?
• Will probate delay the family?
• Could a blended family create conflict?
• Will taxes force the sale of important assets?

This is where trust planning becomes powerful.

A trust is not simply a legal structure. Used properly, it is a coordination tool—one that can bring investments, real estate, family structure, business interests, and long-term intentions into alignment.

For Canadian couples, the goal is not complexity. It is continuity, clarity, tax efficiency, and family harmony.

At-a-Glance: Matching the Right Tool to the Right Problem

The best trust strategy starts with a clear planning question. Different structures solve different problems, and the right answer depends on the couple’s assets, ages, family dynamics, tax exposure, and long-term goals.

1. When the Goal Is Lifetime Continuity: Joint Partner Trusts

A Joint Partner Trust (JPT) can be one of the most effective tools for couples—when structured correctly.

For couples where the person creating and transferring assets into the trust—the settlor—is age 65 or older, a Joint Partner Trust may allow qualifying assets to move into the trust on a tax-deferred basis, while both spouses retain access to the income during their lifetimes.

Why couples consider it

• Continuity: The trust can continue if one spouse becomes incapacitated or dies.
• Access: Both spouses can receive income during their lifetimes.
• Estate efficiency: Assets properly held in the trust may reduce probate exposure.
• Privacy: Assets passing through the trust are generally more private than assets that pass through a probated estate.

2. When One Spouse Needs Their Own Structure: Alter Ego Trusts

An Alter Ego Trust is similar in tax treatment but structurally different. It is designed for one individual age 65 or older.

During that individual’s lifetime, the settlor must be entitled to all income, and no one else can receive or use the trust’s income or capital while the settlor is alive.

Where it fits

• One spouse owns most of the assets.
• There is a desire for incapacity planning and continuity.
• A joint structure is not yet possible or not appropriate.

3. When the Goal Is Family Harmony: Spousal Trusts

A Spousal Trust is typically created through a will and comes into effect after death. It is one of the most important tools for blended-family planning.

What it is designed to do

• Support the surviving spouse during their lifetime.
• Preserve the remaining capital for specific beneficiaries, often children from a prior relationship.

Without a trust, assets left outright to a spouse may later be redirected unintentionally, affected by remarriage, or exposed to conflicting family interests. A Spousal Trust helps align two priorities: care for the surviving spouse and protection of the original inheritance plan.

4. When the Goal Is Long-Term Legacy or Business Planning: Family Trusts

Family trusts are among the most flexible tools in Canadian planning, but they are also among the most complex.

Where they help

• Succession planning: Shifting future growth to the next generation.
• Estate freezes: Locking in current value while transferring future upside.
• Tax planning: Potential access to the Lifetime Capital Gains Exemption (LCGE), where available and properly structured.

The 21-year rule

Most trusts are deemed to dispose of their assets at fair market value every 21 years. That means the plan should include a long-term strategy for distributing, reorganizing, or otherwise managing trust assets before the deemed disposition date.

5. When the Goal Is Clean Ownership: Bare Trusts

A Bare Trust is not really a tax strategy. It is an administrative arrangement. The trustee holds legal title, but has no discretion and acts only on instructions from the beneficial owner.

Key points

• There are no automatic tax advantages.
• Income and gains are generally reported by the beneficial owner.
• Bare trusts are commonly used in real estate nominee or administrative ownership arrangements.

Updated reporting reality

• Bare trusts are not required to file T3 returns for the 2024 and 2025 taxation years, unless the CRA requests it.
• Certain bare trusts may become reportable again for taxation years ending in 2026 and later years, depending on enacted rules and CRA guidance.

6. When the Goal Is Liquidity: Insurance Used Carefully

One of the largest risks in Canadian estate planning is the final tax bill. At death, certain assets may be treated as if they were sold, including investment portfolios, rental properties, cottages, and private company shares.

This can create a significant tax liability at a difficult time.

Where insurance fits

Insurance does not eliminate tax. Its role is to provide liquidity—cash available when tax is due.

When it may make sense

• The estate is large and illiquid, such as land, a cottage, or a private business.
• Assets cannot easily be sold, or the family wants to keep them.
• The projected tax exposure is clear enough to justify premiums and policy design.

Cross-Border Warning: U.S. Connections

What a Coordinated Plan Looks Like

For many couples, no single tool is enough. A well-designed approach may combine several planning elements so the family’s legal documents, investment accounts, tax strategy, and liquidity planning all work together.

The objective is not perfection. It is alignment.

Final Thoughts

Trust planning is not really about documents. It is about protecting the life two people built together.

Done well, it gives a surviving spouse continuity instead of confusion, gives children clarity instead of conflict, and provides a family with structure, privacy, and peace of mind.

A well-designed plan does not make life more complicated. It makes the future more secure.

The Ultimate Act of Protection

At the end of the day, this level of planning is not about making life more complicated. It is about creating stability, protecting what you have built from unnecessary tax exposure, and creating peace of mind.

When we strip away the legal terminology and CRA guidelines, trust planning is rarely about the money itself. It is about what that money represents: a lifetime of shared sacrifices and the quiet promises you made to each other.

It is an act of love to make sure that if the unexpected happens, your partner does not have to navigate financial chaos while mourning a loss. It is also a gift to your children to leave them a legacy of family harmony rather than avoidable administrative confusion.

True wealth is not just what you gather. It is the security you cultivate for the people who matter most.

Before implementation, confirm

• Who owns each asset and whether the asset should be moved, designated, insured, or left alone.
• Who will act as trustee, alternate trustee, executor, attorney, and decision-maker if capacity changes.
• Whether the intended rollover, probate, liquidity, and tax outcomes are actually available in the facts.
• Whether registered accounts, beneficiary designations, insurance ownership, corporate structures, and wills all align.
• Whether any spouse, child, beneficiary, or trustee has U.S. or other cross-border connections.

— Sabiha

The post Secure Your Future Together: The Power of Trust Planning for Couples appeared first on Ed Rempel.

As we hit the halfway point of 2026, it’s the perfect moment to step back and talk about what really builds lasting financial freedom: staying focused on your long-term plan amid all the noise.

Think of your financial plan as the GPS for your life. It’s not a dusty document – it’s a dynamic, living tool that evolves with your goals, family changes, dreams, and circumstances. It guides decisions around retirement, education, major purchases, risk protection, legacy – and your financial freedom. It gives you clarity and confidence to enjoy the present while preparing for the future.

Your Financial Plan is really a life plan.

At our practice, we specialize exclusively in financial planning. We don’t manage investments in-house. Instead, we partner with elite independent portfolio managers and all-star fund managers who have exceptional long-term track records and processes we deeply trust. This allows us to focus 100% on what we do best: building and maintaining interactive financial plans tailored to your life.

Our Unchanging Principles

We are goal-focused, plan-driven, long-term investors working over years and decades to help you achieve your most important financial goals.

Our process is always the same:

• Clearly quantify your goals.

• Build a rational, in-depth plan to achieve them.

• Align a well-diversified portfolio (managed by our trusted partners) that’s suited to support that plan.

• Track your progress and all the actions needed for you to achieve the life you want.

Unless your goals change, the plan stays steady – and so does the overall investment approach. We don’t react to daily headlines, economic forecasts, or market swings.

We believe that the economy can never be consistently forecast, nor the markets consistently timed (except maybe taking advantage of the buying opportunity after a large market decline.) So we’ve decided that to capture the full long-term returns of our equity portfolio, we must remain fully invested in it in “good” markets and “bad.”

From experience, this works exceptionally well long term.

What a Wild First Half of 2026!

This has been one of the most eventful six-month periods in recent memory. We’ve seen geopolitical tensions, energy market swings, shifting interest rate expectations, heavy market concentration, dramatic plunges in assets like Bitcoin and precious metals, and even the largest IPO in history – centered around spacecraft, of all things!

How do we make sense of this chaos for your portfolio? The answer is: we don’t try to. None of these short-term storms change your long-term goals or your Plan. That’s actually something to celebrate – because it has nothing to do with our disciplined strategy.

We remain broadly diversified global equity investors – and stay invested. The markets have consistently provided strong gains over long time periods and we want to fully participate in the growth. It’s the opposite of what many investors do – chasing whatever’s already run up the most.

What really stands out is the continued strength underneath the surface: the earnings growth of high-quality companies, expanding profit margins, rising dividends, and ongoing innovation. These are the fundamental drivers that matter over time.

Of course, markets can – and likely will – experience sharp corrections when least expected. We can’t time them, so we plan to ride through them as we always have, supported by strong businesses and our trusted investment partners.

Exciting Tailwinds Ahead

Beyond the turbulence, there’s a lot to feel optimistic about:

• Strong growth in the earnings of high-quality companies continues to create opportunities across many sectors. Huge gains for our clients in the last 6 months – and earnings are rising just as fast!

• Artificial Intelligence (AI) is transforming industries and daily life, driving productivity gains we’re only beginning to see. I’ve been part of a business coaching group with many other business owners. They are all struggling with how to get the maximum benefits from AI.

• The longevity revolution, powered by AI and medical breakthroughs, points toward healthier, more active lives for much longer – a gamechanger for retirement and lifestyle planning. I have been very active in this longevity movement.

• The restart of space exploration is igniting innovation, new industries, and possibilities that seemed like science fiction just a few years ago.

These powerful trends reinforce why staying invested and plan-focused is so powerful.

The Bottom Line

Staying invested through volatility is like taking your “behavioural Vitamin C” – it protects you from emotional decisions that derail most investors and keeps you moving steadily toward financial freedom.

Your interactive financial plan is the foundation. It keeps you grounded, purposeful, and prepared no matter what headlines appear. It keeps you focused on your progress to the life you want – so you can fully participate in the long-term growth of the market.

Here’s to a strong second half of 2026 and continued progress toward the life you want!

Stay focused. Stay invested.

Ed

The post Stay Invested – Your “Behavioural Vitamin C” to Build Real Financial Freedom appeared first on Ed Rempel.

A Practical Guide to Building Credit Confidence in Canada

Based on a previous article framework by Sabiha Mukadam, CFP

Credit can feel intimidating when no one has explained it clearly.

Many people grow up hearing warnings like:

·       Do not ruin your credit.

·       Credit cards are dangerous.

·       You need credit to get credit.

·       Your score affects everything.

Those warnings may be well-intentioned, but they often create fear instead of understanding.

The truth is that credit is not something to fear. It is a financial tool.

When used carefully, credit can help you qualify for better interest rates, rent a home, access financing when needed, and build more financial flexibility over time. When misunderstood, credit can lead to stress, unnecessary interest costs, and limited options.

The goal is not to borrow more. The goal is to understand how credit works so you can use it with confidence, control, and clarity.

Credit Is a Tool, Not Extra Income

One of the most important things to understand is this: credit is access to borrowed money. It is not extra income.

A credit card limit is not money you have earned. It is money you are allowed to borrow and must repay.

Used wisely, credit can help you build a strong financial reputation. Used carelessly, it can quickly become expensive and stressful.

A simple rule is this: only use your credit card for purchases you already have the cash to pay for.

Why Credit Matters in Real Life

Credit is not just about borrowing money. Your credit profile may affect:

·       Whether you are approved for a credit card, line of credit, car loan, or mortgage

·       The interest rate you are offered

·       Whether a landlord feels comfortable approving your rental application

·       Your ability to access financing in an emergency

·       Certain applications where credit history is relevant and permitted

A strong credit profile gives lenders and other decision-makers more confidence that you manage financial obligations responsibly. That does not mean your credit score defines you. It simply means your credit history is one part of your broader financial picture.

The No-Credit Problem

Some people avoid credit completely because they are afraid of debt. That instinct is understandable, especially if you have seen debt causes stress for others. But avoiding credit altogether can create a different problem.

Having no credit history is not the same as having bad credit history. However, it can still make approvals harder because lenders have less information to assess how you manage borrowed money.

A small, well-managed credit history is usually better than no credit history at all. You do not need to take on debt to build credit. You simply need to show a pattern of responsible use.

Credit Reports vs. Credit Scores

Your credit report and credit score are related, but they are not the same thing.

Your credit report is the detailed history. It may include information such as credit cards, loans, lines of credit, payment history, balances, credit limits, collections, inquiries, and public record information where applicable.

Your credit score is the summary number created from that information. Think of your credit report as the full story and your credit score as the headline.

In Canada, the two main credit bureaus are Equifax Canada and TransUnion Canada. Credit scores often range from 300 to 900, with higher scores generally viewed more favorably by lenders.

However, there is not just one single score that every lender uses. Different lenders, banks, apps, and credit bureaus may use different scoring models. The score you see through your bank or a free credit monitoring app is helpful, but it may not be exactly the same score a lender uses when making a decision.

Use your score as a guide, not as a permanent label.

Credit Myths That Cause Unnecessary Stress

Myth 1: Checking your own credit score lowers it

This is false. Checking your own credit is considered a soft inquiry. It does not hurt your score. You can check your own credit report or score regularly without losing points.

Myth 2: You need to carry a balance to build credit

This is also false. You do not need to pay interest to build credit. Paying your statement in full every month can help build excellent credit without interest charges. Carrying a balance only makes borrowing more expensive.

Myth 3: Being an authorized user always builds your credit

In Canada, being added as an authorized user on someone else’s credit card does not always build credit in your own name. It may help you practice responsible card use, but to build your own credit history, you generally need accounts reported under your own name.

Myth 4: Closing old accounts is always a good idea

Not always. Closing an old no-fee credit card can shorten your average credit history or reduce your available credit, which may affect your score. If an old card has no annual fee and you can manage it responsibly, keeping it open may help preserve your credit history.

The Five Habits That Shape Your Credit

1. Payment History: Pay on Time

This is the foundation of your credit profile. Lenders want to know whether you pay your bills when they are due. Even one missed payment can hurt your score, especially if it is reported as late.

The best habit is simple: pay at least the minimum amount by the due date and pay the full balance whenever possible. Paying the full balance avoids interest. Paying at least the minimum protects your payment history.

2. Credit Utilization: Keep Balances Manageable

Credit utilization measures how much of your available credit you are using. For example, if your credit card limit is $1,000 and your balance is $300, your utilization is 30%.

As a general guideline, try to keep your credit card balance below 30% of your limit when your statement is issued. You can still use your card during the month. The key is to pay it down before the statement date if your balance is getting high.

Think of your credit limit as breathing room, not spending room.

3. Length of Credit History: Time Helps

The longer you manage credit responsibly, the stronger your profile may become. Older accounts can help because they show a longer track record. Credit rewards consistency over time.

4. Credit Mix: Variety Can Help, But Do Not Force It

Lenders may like to see that you can manage different types of credit, such as a credit card, student loan, car loan, line of credit, or mortgage. But this does not mean you should take on unnecessary debt just to create variety. Credit mix can develop naturally over time. Focus on what you actually need.

5. New Credit Inquiries: Apply Intentionally

When you apply for credit, the lender may perform a hard inquiry. One hard inquiry is usually not a big issue. However, many applications in a short period can make you look financially stretched or risky. Apply for credit when it fits your plan, not because of impulse offers, store discounts, or pressure at checkout.

A Note on Buy Now, Pay Later Plans

Buy Now, Pay Later services can feel convenient because they break purchases into smaller payments. However, they can also create confusion.

The payments may seem small on their own, but several plans at once can quickly strain your cash flow. Depending on the provider and situation, missed payments may lead to fees, collections, or credit damage.

Before using Buy Now, Pay Later, ask yourself:

·       Would I still buy this if I had to pay the full amount today?

·       Do I already have the cash available?

·       Will this payment interfere with rent, groceries, debt payments, or savings?

·       Do I fully understand the fees and consequences of missing a payment?

Convenience should not come at the cost of control.

How to Build Credit If You Are Starting From Scratch

Building credit does not require a high income or a complicated strategy. You can start small.

Option 1: Get a no-fee credit card

A no-fee credit card can be a simple first step. Use it for one or two predictable expenses, such as groceries, gas, a phone bill, or a streaming subscription. Then pay it off in full every month.

Option 2: Consider a secured credit card

If you are not approved for a regular credit card, a secured card may help. With a secured card, you provide a cash deposit upfront. That deposit usually becomes your credit limit. For example, a $300 deposit may give you a $300 credit limit.

Option 3: Put a phone plan in your own name

Some phone plans may report payment history to the credit bureaus. If you are paying for a phone anyway, having the account in your own name and paying on time may help build your profile.

Option 4: Explore rent reporting carefully

Rent reporting can be useful for renters, especially if you have limited credit history and consistently pay rent on time. Some services allow your rent payments to be reported to a credit bureau.

Before signing up, check whether there is a fee, which credit bureau receives the information, whether landlord verification is required, whether late or missed rent payments could also be reported, and whether the service makes sense for your situation.

Rent reporting can be helpful, but it is not magic. It is one possible tool.

Simple Rules That Protect Your Credit

Be Very Careful with Co-Signing

Co-signing is one of the most misunderstood credit decisions. When you co-sign, you are not just helping someone get approved. You are legally agreeing to repay the debt if they do not.

If the other person misses payments, your credit can be affected. If they stop paying entirely, the lender can come after you.

Before co-signing, ask yourself:

·       Could I afford to pay this entire debt myself?

·       Would paying it affect my own mortgage, retirement, or savings goals?

·       Am I prepared for this to affect the relationship?

·       Do I understand the full legal responsibility?

If the answer is no, be very cautious. Helping someone emotionally is not the same as taking on legal debt.

If Your Credit Has Been Hurt, You Can Rebuild It

A damaged credit history can feel discouraging, but it is not permanent. Credit is built through repeated behavior over time. If you have missed payments, collections, high balances, or past financial difficulty, start with stability.

1. Bring accounts current where possible

If you are behind, try to catch up on essential accounts first. If you cannot catch up immediately, contact the lender to discuss options. Avoiding the problem usually makes it worse.

2. Stop new damage

Before trying to improve your score, stop anything that could make it worse. That may mean pausing new credit applications, avoiding unnecessary borrowing, setting up automatic payments, creating a simple bill calendar, or reducing spending temporarily.

3. Lower high balances

If your credit cards are close to their limits, paying them down can help. Start with the highest-interest debt first, while still making minimum payments on everything else.

4. Deal with collections

Do not ignore collection notices. Review the details carefully. Make sure the debt is valid. Keep written records of all communication. If you negotiate payment, get the agreement in writing.

5. Rebuild with a small credit product

If needed, a secured credit card can help you restart. Use it lightly, pay it on time, and keep the balance low.

6. Give it time

Credit rebuilding does not happen overnight. Progress is usually measured in months and years, not days. But every on-time payment matters.

How Long Information May Stay on Your Credit Report

Credit setbacks do not last forever. Different types of information may remain on your credit report for different lengths of time. Timelines can vary depending on the province, the credit bureau, and the type of item.

Common examples include:

·       Late payments: often up to 6 years

·       Hard inquiries: often several years

·       Closed positive accounts: may remain for several years

·       Consumer proposals: generally, for a period after completion

·       Bankruptcy: generally, for several years, depending on the situation

The key message is this: negative information can stay on your report for a while, but it becomes less defined as you build newer, stronger habits. Your future behavior still matters.

How to Check Your Credit for Free

You do not need to pay for an expensive subscription to stay informed. Many Canadian banks and free credit monitoring platforms allow you to view a version of your credit score. You can also request your credit report directly from Equifax Canada and TransUnion Canada.

Checking your own credit does not hurt your score. When reviewing your report, look for:

·       Accounts you do not recognize

·       Incorrect balances

·       Payments marked late that were paid on time

·       Old collections that should be updated

·       Personal information errors

·       Signs of identity theft

If you find an error, contact the credit bureau and the lender to start a dispute. Your score matters, but your report tells the story behind the score.

Your 3-Step Action Plan

Step 1: Check your credit

Log into your online banking or use a free credit monitoring platform to see what information is available to you. Then review your credit report for errors.

Step 2: Set up one automatic payment

Choose one important bill, such as a credit card or phone bill, and set up an automatic minimum payment. This creates a safety net.

Step 3: Use credit like a debit card

Before using your credit card, ask: do I already have the cash to pay this off? If the answer is yes, the purchase may fit your plan. If the answer is no, pause. This one habit can protect you from unnecessary interest and long-term debt stress.

Final Encouragement

Your credit story is not defined by where you start. It is shaped by what you do consistently.

Every on-time payment, every lower balance, every avoided impulse application, and every smart decision move you forward.

You do not need to be perfect. You need a simple system.

Pay on time. Keep balances manageable. Check your report. Use credit only when it supports your real life.

You are not behind. You are building.

And with clarity, consistency, and confidence, your credit can become a tool that supports your future instead of something that causes fear.

— Sabiha

The post Understanding Credit Without Fear or Confusion appeared first on Ed Rempel.

For decades, the bedrock of mainstream financial planning has been built on a comforting, two-part rule: diversify your wealth between stocks and bonds, and steadily shift toward the safety of fixed income as you grow older. But according to Toronto-based veteran tax accountant & fee-for-service financial planner, Ed Rempel, this time-honoured tradition might actually be putting your long-term financial security at risk.

Drawing on pioneering academic research, Rempel is challenging conventional retirement wisdom by advocating for a bold alternative: keeping a 100% equity portfolio throughout your entire life.

CLICK THE LINK BELOW TO READ THE ARTICLE BY DENNY JONES:

Get Financial Freedom Tips Article: Rethinking Retirement: Why Ed Rempel Backs a 100% Equity Strategy for Life

The catalyst for this change is a landmark study titled “Beyond the Status Quo: A Critical Assessment of Lifecycle Investment Advice,” authored by finance professors Aizhan Anarkulova, Scott Cederburg, and Michael S. O’Doherty. By analyzing long-term data from 39 developed nations in vast investment horizons, the researchers arrived at a conclusion that matches what Rempel has observed over his decades-long career. An all-equity approach vastly outperforms traditional stock-bond splits.

The study highlights an optimal lifetime framework consisting of 33% domestic stocks, 67% international stocks, and absolutely zero percent bonds or cash. For many everyday savers, the idea of abandoning bonds entirely sounds reckless. However, Rempel explains that long-term math paints a completely different picture.

“The optimal allocation avoids fixed income investments and chooses an all-equity strategy,” Rempel notes. “This result may seem surprising given the vaunted diversification potential and safety offered by bonds. However, bonds become riskier and more correlated with domestic stocks as the investment horizon grows.”

Over a short timeframe, bonds do exhibit lower volatility. But over a 30-year retirement window, their real returns are routinely eaten away by inflation. The study found that bonds offer a meager average real return after inflation of just 0.95% annually, compared to 7.03% for international stocks. Additionally, while international stocks maintain their diversification benefits over time, bonds actually become more closely tied to domestic stock performance during prolonged periods, failing to provide the safety net investors expect.

Sticking to the traditional, conservative path comes with a steep price tag during your working years. According to the study’s data, an investor utilizing a standard balanced portfolio must save nearly twice as much money (19.3% of their income) to achieve the exact same retirement lifestyle as someone saving just 10% of their income in a 100% equity portfolio. Those relying on popular age-based target-date funds still have to save 61% more.

The benefits of the all-equity approach carry over into retirement itself, directly challenging the notion that retirees must pivot to cash and bonds to avoid running out of money. Under a standard 4% retirement spending rule, a couple using a traditional balanced stock-bond strategy faces a 16.9% chance of exhausting their funds. For target-date funds, that risk climbs to 19.7%. In stark contrast, the all-equity framework drops the probability of financial ruin to a mere 7%.

“There is no economically meaningful gain from holding bonds at any point during their lifetimes,” Rempel states, echoing the study’s findings. “The long-horizon return data suggest that diversifying with international stocks, rather than with bonds, improves investor results for long-term appreciation and capital preservation.”

Of course, the biggest hurdle to a 100% equity strategy isn’t the math, but human psychology. Watching a portfolio fluctuate wildly during a market downturn can test the resolve of even the most disciplined investor. Rempel acknowledges that while market drawdowns cause intense psychological strain, retreating to fixed income out of fear is often a math error disguised as safety.

“Our results, as a whole, do not suggest that the all-equity strategy is safe; they merely suggest that it is safer than the common alternative,” Rempel writes in reference to the study. “Given the relative safety and strong growth potential of equities, retirement savers and retirees would likely benefit from adopting a ‘set it and forget it’ strategy that fully invests in domestic and international stock.”

Ultimately, Rempel’s message to investors is clear: true long-term safety doesn’t come from avoiding market ups and downs. It comes from owning high-growth assets that outpace inflation and protect your purchasing power over a lifetime. By replacing bonds with broad international equities, savers can build more wealth, enjoy a higher retirement income, and minimize the risk of outliving their money.

The post Get Financial Freedom Tips Article – Rethinking Retirement: Why Ed Rempel Backs a 100% Equity Strategy for Life appeared first on Ed Rempel.

Starting Over Financially After Loss or Divorce

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When life changes and you suddenly have to handle it all

Part 1: Finding Your Floor Before Making Big Decisions

There is a moment many people do not talk about.

It does not arrive with a clear signal. It is much quieter than that. It may hit on a random Tuesday while you are staring at a stack of mail on the kitchen counter, trying to remember an account password you did not create, or looking at a bank statement that suddenly has only one name on it.

Sometimes it follows a profound loss, the kind that changes the shape of your daily life overnight. Other times, it comes after a separation or divorce, when everything may look intact on the surface but feels fundamentally altered underneath.

After the conversations end, after the paperwork is signed, or after the initial shock begins to settle into a quiet reality, a massive shift occurs:

You realize you are now responsible for everything.

Financially.

Not just the emotional weight of keeping the household together. Not just the logistics of the calendar. The full weight of keeping life steady may now be resting on your shoulders.

And that realization can feel entirely overwhelming. Not because you are not smart, and certainly not because you are not capable, but because this may not have been a room you ever stood in alone before. Maybe you handled the day-to-day bills but left the big-picture strategy to someone else. Maybe you handled some pieces, but not all of them. Or maybe you did not handle the finances at all.

So you sit there, looking at a screen, a spreadsheet, or a pile of unopened envelopes, wondering: Where do I even begin?

This Is Not Just About Money

If we are being honest, this moment is not really about math. If it were just about numbers, you could use a calculator and the anxiety would vanish.

This is about the heavy pressure of carrying a solo safety net. It is the fear of clicking the wrong button, signing the wrong form, missing the wrong deadline, or making an irreversible mistake. It is that voice in the back of your mind whispering that you might already be falling behind.

Take a breath. If your chest feels tight when you open your banking app, that does not mean you are bad with money. It means you are experiencing a major life transition under high stakes. The overwhelm is not proof of incompetence. It is proof that this matters.

The emotional weight can look different depending on how you arrived here:

·      After a loss, there may be grief layered into every task. Even opening a utility bill can feel like reopening a wound you are still trying to process.

·      After a divorce or separation, there may be tension, urgency, uncertainty, or a new pressure to understand finances that were previously shared, uneven, or unclear.

In both cases, the underlying fear is often the same: I cannot afford to get this wrong.

Cutting Through the Financial Noise

When you step into solo financial management after a life upheaval, you are not just learning a new skill. You are learning it in a pressure cooker.

Advice can start coming from every direction:

·      Well-meaning friends tell you what they did during their own transition.

·      The internet pushes investment tips, budget hacks, and urgent-sounding financial rules.

·      Legal, administrative, estate, insurance, or household tasks can make every decision feel like an emergency.

When there is too much noise, most of us default to one of two survival modes:

·      Hyper-action: trying to fix your entire financial life by Friday night.

·      Avoidance: putting the bank statements in a drawer and pretending they do not exist.

Neither response makes you wrong. They are both human. But neither one gives you the steadiness you need. So let us try a third option: pause, simplify, and name what is true today.

Step One: Finding Your Floor

At this stage, your job is not to optimize, cut back, invest, or project your retirement. Your job is to steady the ground beneath you.

If you are navigating an estate, there may be delays, paperwork, and uncertainty around timelines. That is normal. If you are navigating a separation, cash flow may feel inconsistent, temporary, or subject to change. That is also normal.

Stability does not come from having all the answers right now. It comes from understanding what is real today.

If you were sitting across from me with a cup of coffee, I would not start by opening a complicated spreadsheet or lecturing you about investment strategy. I would tell you this: You do not need a five-year plan today. You need to look at what is sitting right in front of you.

Think of it as turning on the lights in a dim room so you stop tripping over the furniture. Do not try to change everything yet. First, gather the facts by identifying three basic things:

1. The Inflow

What money actually arrives this month? Focus only on what is coming in now, not what might arrive later, what used to arrive, or what someone told you may eventually be sorted out.

·      After a loss, this might include employment income, survivor benefits, pension income, life insurance proceeds, government benefits, or temporary support from an estate.

·      After a divorce or separation, this might include employment income, spousal support, child support, temporary support payments, or income from assets you now control.

2. The Essentials

What are the absolute non-negotiables required to keep your physical world safe and functioning?

·      Think mortgage or rent, utilities, groceries, transportation, minimum debt payments, basic insurance, childcare, medication, and anything required to keep your household stable. Everything else can wait for a second pass.

3. The Landscape

Where does the money live?

·      At this point, you do not need perfect balances. Start by naming the places: bank accounts, credit cards, loans, lines of credit, investment accounts, insurance policies, pensions, workplace benefits, or any account you know exists even if you do not yet know the details.

Just listing the names of the banks, cards, accounts, or institutions is progress. You are not budgeting yet. You are removing the mystery.

The Power of the Pause

Big decisions can feel incredibly urgent right now. You might find yourself asking: Should I sell the house? Should I invest this settlement money immediately? Should I move accounts, cancel policies, pay off debt, or make a major financial decision just to feel in control again?

You do not need to rush. In times of deep transition, clarity protects you far more than speed.

Decisions made out of panic usually create more chaos. If you sell an asset, lock yourself into a product, cancel coverage, or make a permanent move because you feel cornered, anxiety is driving the car.

A pause is not avoidance. A pause is a protective boundary. When a banker, an ex-spouse, a well-meaning relative, or even your own racing thoughts try to push you into a decision, having a clear view of your immediate reality allows you to say:

That sentence can be a lifeline. It creates space between pressure and action.

The Solo Mental Load

There is a unique loneliness to making financial choices alone. The silence of solo decision-making can feel different depending on how you got here:

·      If you have lost a partner, the silence can feel heavy, like something is missing from every choice.

·      If you have come through divorce or separation, the silence can feel unfamiliar, like you are suddenly expected to know things that were not fully yours to manage before.

Either way, the result is the same: you are now the final decision-maker.

That does not mean you need perfect answers. It means you are learning how to trust your own. For years, your money decisions may have included a built-in second opinion. Now, the gavel is in your hand. If the water heater breaks, the car insurance goes up, or an unexpected form arrives in the mail, you may feel like the sole shock absorber.

If you find yourself lying awake at 2:00 a.m. wondering, Am I ruining my future? or Would someone else handle this better?, please hear this clearly:

You are not lacking competence. You are getting used to the quiet of solo decision-making.

Confidence is not born overnight. It is built in tiny, repeatable increments: one account named, one bill understood, one decision paused until you are ready.

Stability First, Strategy Later

The financial industry loves to talk about growth. It wants you to maximize, optimize, accelerate, and outperform. Right now, your first goal is not growth. It is stability.

·      After a loss, stability may mean creating a sense of financial safety while everything else is shifting emotionally.

·      After a separation or divorce, stability may mean building consistency and independence on your own terms.

If letting transition funds sit somewhere simple, safe, and easy to access for a short period helps you sleep through the night, that may be exactly the kind of temporary stability you need before making bigger decisions. Do not let anyone shame you out of a reasonable pause.

There will be a time for strategy. There will be a time to decide what should be invested, paid down, consolidated, sold, protected, or changed. But strategy works best when it is built on a floor that feels solid.

When to Get Help

Some decisions should not be made alone, especially when they involve taxes, legal agreements, estate paperwork, insurance proceeds, pensions, support payments, debt restructuring, beneficiary designations, or selling a home.

Getting support does not mean surrendering control. A good professional should help you understand your options, explain trade-offs in plain language, and give you room to decide without pressure. The right help should make you feel steadier, not smaller.

You do not need a full team on day one. But you may eventually need the right people in the right places: a financial planner, accountant, estate professional, lawyer, mortgage specialist, or counsellor. The key is not to rush into advice before you understand your immediate floor.

You Are Not Starting from Zero

It is easy to look at this new chapter and feel as though you have been knocked back to the starting line. But that is not the truth.

·      You are not starting from zero after a loss. You are carrying forward a shared life while learning how to anchor it in a new way.

·      You are not starting from zero after a divorce or separation. You are stepping into a version of independence that belongs entirely to you.

This is not a restart. It is a rebuild. And you are rebuilding with more awareness than you had before.

A strong foundation does not get built in a rush. It gets built with patience, clarity, support, and self-trust, one day and one decision at a time.

If you do not have it all figured out today, that is exactly as it should be. You are not behind. You are not failing. You are standing in a new room, turning on the lights one switch at a time.

Your Action Step for Today

Before you close this page, open a blank note or take out a plain piece of paper. Write down three headings: Inflow, Essentials, and Landscape.

Fill in only what you know right now. Do not log into every account if it makes your chest tighten. Do not chase every missing number today. Just name what you can name.

Do not solve anything today. Just name what you know.

Save this three-heading list. In the next part, we will look at how to gather the missing pieces calmly, clearly, and without letting the process take over your life.

— Sabiha

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