Most Canadians expect to be in a lower tax bracket in retirement. 

But many end up paying more tax than they expect. 

How do tax brackets change after age 65 and why can common assumptions about RRSPs and retirement income lead to higher lifetime taxes?

Here are practical strategies to reduce tax over time, including how to use RRSPs, TFSAs, income timing and how to plan for a tax-efficient retirement.

This might be a real eye opener for some people because I think a lot of people that do some basic tax planning are doing it all wrong.

In my latest video, podcast episode, and blog post I’m going to give you tax planning made easy using tax brackets. Some basics of tax brackets, and briefly how tax planning is done, so you can get the concept. 

Then we’re going to talk about why tax brackets for seniors are way different than you think – and how this completely changes tax planning. And how to plan for low tax through your retirement.

You’ll learn:

• Tax planning made easy using tax brackets. 
• Why are tax brackets for seniors way different? 
• What are the three main clawbacks on seniors? 
• What are the actual effective tax brackets for seniors?
• How is tax planning very different with the actual effective tax brackets?
• Which is better for you – TFSA or RRSP?
• How can you plan for your retirement income to be taxed at only 22% or less? 
• How does your financial plan become the GPS for your life? 

Tax planning made easy using tax brackets.

– Much of tax planning is based on marginal tax brackets. These are the tax on the next dollar of taxable income – which is different from the average tax rate you pay on all your income.

– Tax planning is about being able to plan for or control your taxable income. You can plan ahead to see what it will be or often you can control it based on decisions you make about your income or tax deductions.

– For example, if you have a corporation, you can decide how much salary or dividend to withdraw from your corporation. If you are contributing to RRSP or TFSA, you can decide how much to contribute to which and how much to deduct on your tax return.

– Your taxable income can be very different from your cash income – especially if you are self-employed, have a corporation, or are retired. For example, you pay no tax on cash you withdraw from your TFSA and only pay tax on any capital gains triggered when you withdraw from non-registered investments.

– Here are the basic tax brackets before age 65:

– Let’s look at some tax planning ideas based on tax brackets.

– When you have options on income, try to keep your income from being taxed at higher tax brackets. When you have options on deductions, try to get the largest refund by trying to keep your deductions from giving you refunds based on lower tax brackets.

– Example 1: Business owner can decide how much to withdraw from his company. Try to make it $54,000 to have all of it taxed at 19% or less. Or make it $117,000 to avoid paying 43% tax or more.

– Example 2: If you are deciding between contributing $10,000 to RRSP or TFSA and you have a salary of $65,000, contribute $3,500 to TFSA and $6,500 to RRSP to get a 39% refund on all of your RRSP contribution and avoid getting only a 23% refund.

– Note that actual effective tax brackets for parents can be dramatically different because of the clawback on the Canada Child Benefit. I have a video with details.

– Focus on the tax brackets that are a large tax increase from the previous bracket and the brackets that cover a larger range of income. Here are the main brackets to focus on:

Why are tax brackets for seniors way different? 

– Seniors have many government benefits clawed back based on their taxable income. These are exactly the same as a tax. It is the government taking money from you based on your taxable income.

– The 3 main clawbacks are the GIS clawback of 50% on low-income seniors, the age credit reduced by 15% for middle income seniors, and the OAS clawed back by 15% for higher income seniors.

– Note how tax brackets change when you include the clawbacks. These are for a single person and are different for married:

What are the actual effective tax brackets for seniors?

– Tax brackets after age 65 are way different than before.

– The GIS clawback is massive, the age credit clawback is small, and the OAS clawback is relatively large.

– People with a very low income below $22,500 are in a 50% tax bracket! One of the highest.

– Most seniors with incomes up to $152,000 will be in a higher tax bracket if they retire with the same income they had before they retire.

How is tax planning very different with the actual effective tax brackets?

– You save for retirement with one set up tax brackets, but then you have a different set after you turn 65 with higher tax brackets.

– For example, people with very low incomes may contribute to an RRSP and get a 19% tax refund, but then pay 50% tax in lost GIS income after they retire. In that case, the RRSP was a bad idea for them.

– Most incomes up to $152,000 are taxed at higher brackets after age 65. If you expect to retire close to the income you have before age 65, then you need a closer look at your current taxable bracket and the tax bracket you expect to be in after you retire to make smart decisions, such as about your RRSP contributions. For example, people making $110,000 and retiring at the same income would get a 34% tax refund when they contribute but pay 44% tax when they withdraw years later.

Which is better for you – TFSA or RRSP?

– You can invest the same in both and you are not taxed on either for investments while you hold them inside the RRSP or TFSA. The difference is your marginal tax bracket when you contribute vs. when you withdraw. If you will withdraw at a lower tax bracket, then RRSP is probably the best strategy for you. If not, then TFSA is probably better.

– For example, many people get a 40% refund when they contribute and then withdraw decades later paying only 20% tax. Then RRSP is a good thing for you and better than TFSA.

– Most Canadians can plan to pay only 22% or less on their retirement income. If your taxable income before you retire is over $54,000, then you are in a higher marginal tax bracket.

– The general rule of thumb is that people with taxable incomes over $58,500 should usually contribute to RRSP and those with lower incomes should usually contribute to TFSA.

– There are many exceptions to this, though. For example, very low-income seniors with little or no retirement savings should contribute to TFSA, instead of RRSP, since they may lose 50% GIS income on RRSP withdrawals after they retire. People who expect to retire with the same income as before they retire should probably focus on TFSA, as well.

– The only way to know what your tax bracket is now and what it will be after you retire with the lifestyle you want is with a Financial Plan. It figures it out for you and shows you how to plan for the life you want.

How can you plan for your retirement income to be taxed at only 22% or less?

– The important point is not what your taxable income is, but what you can plan it to be. This can be very different from your cash income – which is your lifestyle.

– For example, you can pay 22% or less on all your income if you retire with a taxable income below $54,000.

– Here are 3 examples of how to structure your retirement income to all be taxed at 22% or less:

– How do you get non-registered investments? Most people only contribute to RRSP and TFSA, since it is a challenge just to maximize your contribution room for both. However, some people are big savers and save much more than the limits. The extra savings that are not RRSP or TFSA are all non-registered.

– Many people also use strategies of borrowing to invest, such as the Smith Manoeuvre. If you maximize the Smith Manoeuvre, you can typically have non-registered investments as large as your RRSP and TFSA. This is true even though you contributed your cash flow to RRSP and TFSA, since the Smith Manoeuvre generally does not require your cash flow.

– The Smith Manoeuvre also gives you a tax deduction, which might be your only tax deduction after you retire.

– This example assumes that you use “self-made dividends” for your retirement cash flow from your non-registered investments. “Self-made dividends” just mean you sell a bit of your investments each month to give you the exact amount of cash flow you want. You pay tax only on any capital gains you triggered. This allows you to continue to invest for growth through your retirement and focus on triggering as little taxable income as possible. Focusing on deferred capital gains that are triggered when you eventually sell over time is the most tax-efficient way to structure your retirement income.

– Self-made dividends are better than ordinary dividends in every way.

– Many people think you need to invest for income after you retire. You don’t. You need cash flow, not income.

– Many dividend investors think they are paying the lowest tax, but they almost always pay more than with self-made dividends. I have a video with details: Dividend Investing Perfected with Self-Made Dividends .

How does your financial plan become the GPS for your life? 

– To eventually be financially free living the lifestyle you want and an optimal lower taxable income, you need a Financial Plan.

– Rough estimates in your head can easily be far wrong and may lead you to make wrong decisions from not knowing your future tax bracket.

– You have many options for how to live your life now and after you retire, plus many possible decisions on how to structure your finances. Therefore, you need an “Interactive Financial Plan” where you look at a wide variety of options while deciding on how you actually want to live. You need to be able to see very quickly what effect various life decisions will have on your future life and your tax.

– Your Financial Plan is the GPS for your life. The first thing you do when you start a trip is put your destination into your GPS so you know exactly the best way to go. Life is the same. The first thing you should do is get your Financial Plan so you know exactly how to achieve the life you want.

– Make it your goal – not something you think people typically end up with.

– Life feels completely different when you are financially independent. You are free to make whatever life choices you want.

– Live life intentionally. Real freedom is financial freedom.

Ed

The post Retirement Tax Shock: Why Many Canadians Pay More Tax Than Expected appeared first on Ed Rempel.

Let’s make money make sense.

Let’s be honest for a second… Nobody really cares about banking—until that first real paycheck hits.

Whether it’s from a part-time job, tutoring, lifeguarding, or just money coming in more regularly, suddenly you’ve got cash. But just as quickly as it arrives, it’s gone. Between your phone bill, Spotify, Uber rides, and grabbing food with friends, it adds up fast.

At some point, you catch yourself thinking: “Wait… where did all my money go?”

That’s where banking comes in. Not to make life complicated, but to give you a system so your money doesn’t just disappear on you.

So… What Does a Bank Actually Do?

The easiest way to think about a bank? It’s basically a tech company that protects your money and helps you move it around. Everyday activities happen seamlessly through your bank:

• Getting paid via direct deposit
• Tapping your card at a store
• Sending money to friends
• Paying your monthly subscriptions

You’re probably using a bank multiple times a day without even thinking about it.

But Here’s the Thing—Banks Are Businesses

And that’s completely normal. They make money in a few main ways:

1. Lending out your money: When you put $100 in the bank, it doesn’t just sit there. The bank lends it to someone else—like for a car or a house—and charges them interest.
2. Charging fees: This includes account fees, ATM fees, or penalties if you don’t meet certain account requirements.
3. Credit card interest: When people don’t pay their full monthly balance, the bank charges interest on what’s left over.

The Takeaway: This doesn’t mean banks are “bad.” It just means you want to use them smartly. Choosing a no-fee student account, using the right ATMs, and paying your cards on time can save you a surprising amount of money. The goal isn’t to avoid banks—the goal is to make them work for you.

The Only 2 Accounts You Actually Need

Here’s some good news, especially if you’re under 18 or in school: most banks offer free youth or student accounts. Right now, you shouldn’t be paying monthly fees.

You don’t need a complicated setup. Just start with these two accounts:

1. Your Chequing Account

Think of this as your “life account.” This is your everyday money where your paycheck goes, your spending happens, and your bills get paid. It is directly connected to your debit card and your phone.

• Real-Life Example: You get paid $500. Over the next few days, you spend $80 on food, $20 on subscriptions, $60 going out, and $40 on random spending. This all comes directly out of your chequing account.

2. Your Savings Account

This is your “don’t-touch-this unless you mean to” money. This is where you store funds for future goals, emergencies, or big purchases.

• Real-Life Example: You’re saving up for a laptop or a trip. Alternatively, something unexpected happens—like a phone repair. If you have savings, it’s manageable; if you don’t, it’s stressful.

The Honestly Critical Tip

If all your money sits in one account, you will spend it. No one plans to, but it happens. Separating your money into chequing and savings creates a vital mental barrier that keeps your savings safe from everyday impulses.

Your Banking App = Your Financial Dashboard

Let’s be real—your bank isn’t a brick-and-mortar building anymore. It’s an app on your phone, and you’ll use it all the time to handle your daily life:

• Checking your balance before buying something
• Sending quick e-transfers to friends
• Paying bills and moving money into savings
• Tracking where your money actually went

Real-Life Moments You’ll Recognize

• The “Can I afford this?” moment: You’re about to order food, check your balance, and immediately change your mind.
• Splitting everything: Dinner, Ubers, rent, concert tickets—all handled in seconds.
• The monthly reality check: Scrolling through your transactions and realizing, “Why did I spend that much on takeout?” That moment right there is how your habits improve.
• Catching something weird: You see a charge you don’t recognize, freeze your card instantly in the app, and handle the problem before it gets worse.

Why App Quality Matters: A good app sends real-time notifications and lets you control your cards instantly. A bad one forces you to call customer service or visit a physical branch. Always check app reviews before choosing a bank.

Debit vs. Credit Cards (Quick Reality Check)

At first, you’ll mostly use a debit card. Around age 18 or 19, you’ll start seeing credit cards everywhere. Here is the actual difference between the two:

The Truth About Credit Cards

They aren’t inherently bad; they’re just easy to misuse.

• Used properly: They build your credit score, which helps you later in life when renting an apartment or applying for a car loan.
• Used poorly: Interest stacks up quickly, and debt becomes incredibly stressful.

The Simple Rule: Only spend money on a credit card that you already have in your chequing account and pay the balance off fully every single month.

Common Mistakes to Avoid

Let’s save you some money right out of the gate by avoiding these traps:

1. Paying unnecessary fees: Stick strictly to student/youth accounts that offer $0 monthly fees.
2. Using random ATMs: Out-of-network ATM withdrawals can cost way more than you think.
3. The subscription trap: Forgetting to cancel free trials before they turn into recurring monthly charges.
4. Overspending socially: Falling into the “it’s just one night out” mindset too many times a week.
5. Not checking your account: This is the biggest mistake. If you don’t look at your money, you lose track of it automatically.

Your Simple Action Plan

You don’t need a complicated spreadsheet to start. Just follow these three steps:

Step 1: Open one chequing account and one savings account with a no-fee bank.

Step 2: Download the banking app and set up your login.

Step 3: Every time you get paid, move money into your savings account right away. A great baseline rule to try is 50% save / 50% spend, but use whatever ratio works best for your current goals.

Final Thought

Banking isn’t about being completely perfect with your money. It’s about having a system that keeps you aware and in control. If you separate your money, check your account regularly, avoid useless fees, and build simple habits, you’re already miles ahead of most people your age. And honestly? That makes life a whole lot less stressful.

As your income grows, your financial decisions matter more.

Not because life should feel restrictive,

but because small habits compound quickly.

Good banking won’t make you rich.

But bad banking can quietly hold you back without you noticing.

–Sabiha

The post How Banking Actually Works (And How to Set Up Your First Accounts) appeared first on Ed Rempel.

The longevity movement is transforming how we think about aging—not as an inevitable decline, but as a challenge we can overcome with science, technology, and smart choices.

Many experts believe we’re on the cusp of dramatically extending healthy lifespans.

I’m on a longevity and healthspan journey.

I’m not an expert in longevity, but I’m continuously learning, and it’s all exciting. I’m simply passing along some of what I’ve learned.

I am, however, an expert in retirement planning. Living healthier for longer can have a huge impact on your retirement.

What kind of life do you want if you remain healthy for decades longer?

In my latest video, podcast episode, and blog post, you’ll learn:

• Why science suggests we could add healthy decades to our lives within the next 10–20 years.
• How Peter Diamandis and the $101 million XPRIZE Healthspan are accelerating breakthroughs.
• The 9 key hallmarks of aging, with clear explanations and promising solutions.
• A close-up look at Lake Nona, Florida—a purpose-built longevity hub—and what it could mean for all of us.
• What we can do today to stay healthier for longer.
• An optimistic vision for a future of vibrant, extended healthspan.

Why We’re Likely to Live Much Longer Soon

Medical progress has already been extending life expectancy by about three months every year. But now, exponential technologies are converging: artificial intelligence for analyzing vast biological data, CRISPR for precise gene editing, advanced gene therapies, epigenetic reprogramming, senolytics to clear harmful cells, and more.

Futurists like Ray Kurzweil and Peter Diamandis talk about reaching ‘Longevity Escape Velocity’—the point where scientific advances add more than one year of healthy life for every year that passes. For those who maintain good health and have access to emerging tools, this could arrive by the late 2030s. It’s not about immortality, but about expanding our prime years for family, travel, work, and purpose. 

The XPRIZE Healthspan

Peter Diamandis, through XPRIZE, is fueling this with the $101 Million XPRIZE Healthspan—the largest prize in XPRIZE history. Launched as a 7-year global competition (running to 2030), it challenges teams worldwide to develop safe, accessible therapeutics that can restore muscle function, cognitive performance, and immune response by the equivalent of at least 10 years (with a stretch goal of 20 years) in people aged 50-80.

In other words, it’s a massive prize to any group or company that finds a way to reverse aging.

Teams must prove results in rigorous clinical trials within a year of treatment. This prize isn’t just about extending lifespan—it’s about extending healthspan, the years we live actively and independently. It incentivizes real-world innovation and collaboration across biotech, pharma, and academia.

More than 600 competing teams from 58 countries registered for the global competition. From those 600+, 100 teams have advanced as semi-finalists (Top 100 Qualified Teams). Of these, the Top 40 teams were selected as Milestone 1 award winners (each receiving funding to advance) for the main Healthspan prize, plus 8 are finalists for the related $10M FSHD Bonus Prize.

These teams are actively developing and testing therapeutics aimed at restoring muscle, cognitive, and immune function. The competition remains active through 2030, with a further milestone in mid-2026 narrowing it down further.

The high number of entrants shows tremendous global interest and momentum in the longevity field.

The 9 Hallmarks of Aging

What actually is aging? You have the same genome that you did when you were 20. Why do you look different?

Understanding aging starts with the foundational 9 hallmarks, identified in landmark research and frequently highlighted by Peter Diamandis. These interconnected processes drive aging, but many are modifiable today through lifestyle and poised for high-tech interventions tomorrow. Here’s each one with a detailed explanation and what Diamandis and the field see as promising paths forward:

1. Genomic Instability: Over time, our DNA accumulates damage from radiation, toxins, errors in replication, and oxidative stress, leading to mutations and cellular dysfunction. Solutions: Minimize exposure to toxins and excess sugar; leverage CRISPR-based gene editing and DNA repair therapies in the future. Lifestyle basics like antioxidant-rich diets help today.
2. Telomere Attrition: Telomeres are protective caps on chromosomes that shorten with each cell division, eventually limiting replication (the Hayflick limit). Solutions: Proven lifestyle factors include exercise, meditation, a healthy diet, and stress reduction, which can help preserve or lengthen telomeres. Emerging telomerase activation therapies are in development.
3. Epigenetic Alterations: These are changes in how genes are expressed (turned on/off) without altering the DNA sequence itself—driven by environment, diet, and aging. As you age, your body turns off some genes and turns on others. Solutions: Healthy habits like quality sleep and nutrition influence epigenetics positively. Exciting epigenetic reprogramming techniques (partial cellular reprogramming) aim to reset cells to a more youthful state.
4. Loss of Proteostasis: Cells struggle to properly fold, maintain, and clear proteins, leading to toxic clumps associated with diseases like Alzheimer’s. Solutions: Intermittent fasting and nutrient-dense diets activate cellular cleanup (autophagy). Exercise supports this process; future drugs targeting proteostasis networks are advancing.
5. Dysfunctional Mitochondria (Mitochondrial Dysfunction): Mitochondria are tiny structures inside almost every cell in your body. Their main job is to produce energy. They take the food you eat and the oxygen you breathe and convert them into a usable form of energy called ATP (adenosine triphosphate). This energy powers everything you do: walking, thinking, digesting, repairing tissues, exercising, and even sleeping. As we age, our cellular powerhouses become less efficient, producing more harmful reactive oxygen species (ROS) and less energy. Solutions: Whole-food diets, regular exercise, and hormesis practices (like sauna or cold exposure). NAD+ boosters (e.g., NMN or NR) are popular and show promise in supporting mitochondrial health.
6. Cellular Senescence: Cells enter a “zombie” state where they stop dividing but secrete inflammatory signals, contributing to chronic inflammation and tissue damage. Solutions: Senolytic compounds (like dasatinib + quercetin or fisetin) that clear these cells; consistent exercise; emerging senolytic drugs and even vaccines targeting senescent cells.
7. Stem Cell Exhaustion: As we age, our reserves of stem cells, needed for tissue repair and regeneration, decline in number and function. Solutions: Stem cell therapies (using a patient’s own or donor cells) are already in clinical use for some conditions. Research into rejuvenating the stem cell niche is accelerating.
8. Altered Intercellular Communication: Signaling between cells becomes dysregulated, leading to chronic inflammation (“inflammaging”) and poor coordination across tissues. Solutions: Anti-inflammatory lifestyle choices like omega-3-rich foods, exercise, and good sleep. Broader approaches target systemic inflammation and the SASP (senescence-associated secretory phenotype).
9. Deregulated Nutrient Sensing: As we age, pathways like mTOR, insulin/IGF-1, and AMPK that sense nutrients get out of balance, shifting the body from repair to growth mode inappropriately. Solutions: Caloric restriction or intermittent fasting powerfully influences these pathways. Supplements like metformin or NAD+ precursors help regulate them; targeted drugs are in trials.

These 9 hallmarks don’t act in isolation—they reinforce each other. The good news? Lifestyle powerfully modulates most of them right now, buying us time until advanced therapies arrive.

A Glimpse into Lake Nona – A Longevity Hub

One of the most exciting real-world examples is Lake Nona in Orlando, Florida. This master-planned community was deliberately designed as a hub for health, wellness, innovation, and longevity. It brings together researchers, clinicians, biotech companies, and residents in close proximity to spark rapid collaboration and translation of ideas into practice.

Key players include the University of Central Florida’s Academic Health Sciences campus with its medical school focused on biomedical research, the UCF Lake Nona Cancer Center, and UCF Lake Nona Hospital; the Orlando VA Medical Center; Nemours Children’s Health; major players like Johnson & Johnson; and numerous biotech firms.

There are a few clinics open to the public with specialized longevity services and treatments.

In a video on my Instgram post, I walk by some of them. It starts with the Wave Hotel, one of the most technologically advanced hotels in the world. Nearby and beside each other are a few specialized clinics.

Upgrade Labs (founded by Dave Asprey) offers state-of-the-art biohacking: AI-driven strength training, cryotherapy, red light therapy, PEMF, neurofeedback for cognitive vitality, recovery tech, and more. This ecosystem means experts in hospitals, drug development, research labs, and specialized clinics work side-by-side. Discoveries move faster from bench to bedside, accelerating benefits for everyone through shared knowledge, clinical trials, and real-world application. Upgrade Labs is also in Oakville Ontario.

Fountain Life, winner of the Longevity Clinic of the Year for 2025 has its global headquarters here. I am one of their patients in their APEX year-round program. They provide AI-powered, full-body precision diagnostics that detect diseases like cancer, heart issues, and neurodegeneration years or decades early – empowering proactive interventions. It is owned by Peter Diamandis.

Serotonin Anti-Aging Center is a physician-led longevity and wellness clinic specializing in hormone optimization, peptide therapy, and anti-aging treatments. It offers bioidentical hormone replacement (including testosterone), NAD+ infusions, medical weight loss, IV nutrient therapy, red light therapy, hyperbaric oxygen, aesthetics, and personalized coaching — all designed to boost energy, vitality, and healthy aging.

Lake Nona Performance Club (LNPC) is the largest gym I have seen. It is 13,000 sq. ft. with 10,000 members with all the latest equipment. It has a cold plunge, rock climbing and many classes. The attached spa has the usual spa services, plus the Peak Living clinic, with the Amortal Experience red light bed and the AESCAPE robot massage.

Note: I am not a doctor. I am not specifically endorsing any treatment, supplement or clinic. This is purely educational to give you an idea of some of what is available. I don’t know for sure of actual benefits from these treatments, but I tried a bunch of them.

What can we do today to be healthy longer?

·        Do what you can to avoid the “4 horsemen of chronic disease” – heart disease, cancer, neurodegenerative diseases (e.g., Alzheimer’s, Parkinson’s, and dementia), and metabolic dysfunction such as type 2 diabetes. 

·        Advanced screening & testing today can detect most of these diseases early. Private clinics do this preventative medicine, such as the basics with Medcan in Canada and the most advanced with Fountain Life in the US.

·        Core lifestyle habits are still the key: sleep, exercise, diet & mindset. Focus on all 4. I personally use a sleep mask and wearable to track my sleep, have a personal trainer for weights and interval treadmill training together with protein to build muscle, and have a high protein diet with intermittent fasting. I get a lot of professional advice on all these.

·        Supplements and meds targeted based on your test results. I am on 14 supplements recommended by my Fountain Life doctor from a specific, high-quality supplier.

·        Have a “longevity mindset”. Optimists live longer than pessimists (even if they are wrong). People with a life purpose live longer.

·        Most important: Don’t die from something stupid! This includes high-risk activities, but also diseases that we already know how to test for early detection.

Optimistic Vision of Our Future

The longevity movement gives us profound hope: more vibrant years with loved ones, pursuing passions, and contributing meaningfully. By focusing on evidence-based habits today—nutrition, movement, sleep, stress management, and advanced screenings—we can bridge to tomorrow’s breakthroughs.

Science is making aging more optional than inevitable. The future looks brighter and longer than ever.

What steps are you taking? Share in the comments.

Ed

The post The Longevity Revolution: Why We’re on the Brink of Living Decades Longer appeared first on Ed Rempel.

Financial Planning Myths and Why You Absolutely Need a Plan (and a Planner)

Financial planning is one of those things most people know they should think about… yet many avoid it for years.

Not because they’re irresponsible.

Usually, it comes down to a few common beliefs:

“I’m not wealthy enough yet.”
“I can figure this out myself.”
“Once I make a plan, I’m done.”
“Planning will restrict my lifestyle.”

After decades working in financial planning, I’ve realized that underneath many of these beliefs is often the same thing: a misunderstanding about what financial planning actually is, and who it’s really for.

These myths can quietly shape financial decisions for years, often delaying the very habits and conversations that help people build confidence and long-term stability.

So let’s break down some of the biggest ones and explore why having a financial plan (and working with a planner) can truly be life-changing.

Myth #1: “Financial planning is only for the wealthy.”

This is probably the most common misconception I hear.

I remember a young couple who came in several years ago. 

Before we even started, one of them looked at me and said:

“We probably don’t have enough money to be here. We might be wasting your time.”

I told them:

“My job isn’t just to help people who already have wealth. My job is to help people start building it.”

We started with the basics:

• setting up an emergency fund
• simplifying debt
• building consistency
• creating a long-term investment plan

Five years later, their net worth had grown significantly, and they were preparing to buy their first home — something they never imagined possible when we first met.

That’s the part people often underestimate.

Financial planning isn’t for the wealthy. It’s often how people become wealthy, because the habits you build early are usually the habits that create long-term stability later.

Research consistently shows that long-term financial planning improves overall financial health regardless of someone’s starting income or net worth. 

Myth #2: “I can figure it out on my own.”

There’s more financial information available today than ever before.

Many people are comfortable managing investments on their own using platforms like Wealthsimple or Questrade while learning through podcasts, books, videos, and online content.

And honestly, many people already know quite a bit.

That’s not necessarily a bad thing.

The issue usually isn’t a lack of information.

It’s understanding how all the pieces fit together in a way that actually supports long-term goals.

Because financial planning involves much more than simply choosing investments.

It also includes:

• cash-flow management
• tax efficiency
• insurance and risk protection
• retirement projections
• estate considerations
• risk management
• long-term lifestyle planning

I once sat down with someone who had been managing their own investments for years after learning online. They came in feeling fairly confident and believed they were doing better than they would with an advisor because they were saving on fees.

But when we reviewed their full financial picture together, something shifted.

They realized investment planning was really only one piece of a much larger picture. There were gaps they hadn’t seen because they didn’t know where to look.

That’s not a criticism of people who try to manage things themselves.

In many cases, they’re doing a lot of things well.

But sometimes people end up optimizing one area while unintentionally creating problems somewhere else.

That’s why good financial planning is rarely just about chasing returns alone. It’s about building strategies that help you retain and grow wealth in a way that actually supports your life over time.

And honestly, what you don’t know you’re missing is often the most expensive part.

Financial planning outcomes are shaped not only by financial literacy but also by behavioural patterns, long-term decision-making, and financial structure — areas where professional guidance can help bring additional clarity and perspective. 

Myth #3: “A plan is one and done.”

Life isn’t static — and your financial plan shouldn’t be either.

A financial plan is a living document that should evolve as your life evolves.

I’ve worked with clients who came in with financial plans that were over a decade old and had never been updated. 

Over the years, they had changed jobs, bought homes, had children, and lived through multiple tax rule changes — yet the plan itself stayed exactly the same.

Together, we uncovered gaps in insurance coverage, underfunded education savings, and investments that no longer aligned with their goals.

Financial planning is rarely a straight line.

As I often explain to clients, it’s more like waves.

Life happens. Priorities change. Unexpected opportunities and challenges appear. 

The important thing is not to try to predict every detail perfectly — it’s to understand what to adjust, when to adjust it, and how to keep moving forward without losing sight of the bigger picture.

That’s why regularly reviewing your financial plan matters so much.

Small adjustments over time can help prevent much larger problems later.

I recently wrote on LinkedIn about the importance of regularly reviewing your financial plan, especially as your goals, priorities, and life circumstances change. 

A financial plan isn’t something you file away and forget — it’s something you grow with.

Myth #4: “Budgeting and planning restrict my lifestyle.”

This myth is rooted in fear — but the reality is often the opposite.

Financial planning gives people freedom, not restriction.

What many people are actually afraid of is feeling judged, controlled, or guilty every time they spend money.

I’ve had people tell me:

“I don’t want someone telling me I can’t spend money.”

Or:

“I don’t like having to explain what I spend things on.”

But good financial planning is not about judgment or removing enjoyment from life.

As I often explain to clients:

“This is your plan and your life. I don’t want to restrict you. I just want to make sure your money lasts and supports the way you actually want to live.”

One client once told me they had avoided budgeting for years because they “didn’t want to feel controlled.”

But after we built a financial plan together, they realized they actually felt freer with money, not more restricted.

They could spend on travel and experiences without the constant background anxiety because they understood how those choices fit into the larger picture.

That’s one of the biggest shifts people experience: financial planning often allows people to enjoy their lives more fully because they understand how their decisions fit into the long-term plan.

Financial planning can improve overall financial satisfaction and support long-term positive financial behaviour. 

Planning doesn’t restrict your lifestyle.
It helps you live it more intentionally and confidently.

Why You Should Have a Financial Plan

Clarity — Understand where you are today and what path supports your long-term goals.

Confidence — Replace stress and uncertainty with a roadmap.

Protection — Prepare for life’s unexpected changes before they happen.

Wealth Building — Small, consistent habits can compound into meaningful long-term growth.

Adaptability — A strong financial plan evolves as your life evolves.

Why Work with a Financial Planner?

People often ask me, “How do I know a planner is bringing me value?” My answer is simple:

If your net worth is growing over time and your financial decisions are becoming more intentional year after year, then your plan is likely working. 

But there’s a part of the process that goes beyond the numbers too.

A good financial planner is not simply there to help choose investments.

They help bring structure, objectivity, and long-term thinking to decisions that are often emotional, stressful, or easy to delay.

Financial planning is about understanding how all the moving pieces fit together—cash flow, taxes, retirement planning, insurance, risk management, estate considerations, and long-term lifestyle goals.

One thing people don’t always expect is how often financial planning overlaps with life planning.

I always tell my clients, “If something changes in your life, run it by me.”

Not because they need permission, but because life decisions almost always have financial implications somewhere beneath the surface.

I’ve had clients call me when they’re considering a new job, negotiating a salary, going back to school, having children, moving to a new city, caring for parents, buying property, taking a sabbatical, or dealing with illness or burnout.

In those moments, I’m not just thinking about the financial impact.

I’m also thinking about what they’re experiencing emotionally and mentally.

Will they be exhausted?

Will they need flexibility?

How do we structure things so their finances support them during that phase of life instead of adding more pressure?

That’s what financial planning often becomes over time: not just investment advice, but a sounding board for the moments that matter.

And honestly, that’s why I’ve always believed financial planning is more about the person than the numbers.

My Personal Philosophy

I started working in banking at 18, and for most of that time, my philosophy has stayed fairly simple: do what’s best for the client.

When you hold that as your north star, financial planning stops being only about products, investments, or strategies and becomes much more about people—their goals, their worries, their values, and the life they’re actually trying to build.

A good financial planner is not there to judge, control, or overwhelm people.

They’re there to help people think more clearly, feel more confident in their decisions, and build a financial life that supports the future they actually want.

I’ve always believed a financial planner should become more than someone who simply manages numbers. At their best, planners become trusted guides — people clients can turn to for perspective, structure, and support through different stages of life.

I’m naturally optimistic. I’ve seen that when people understand their situation clearly and feel supported in their decisions, they usually make far better choices than they think they will.

As I’ve said throughout this article, planning is more about the person than the numbers.

The numbers matter, of course.

But ultimately, they’re there to support something much larger: a life that feels stable, intentional, and sustainable over time.

That’s why I do this work, and it’s the lens through which every client conversation begins.

Sabiha

The post Financial Planning Isn’t Optional—It’s Your Power Move appeared first on Ed Rempel.

What if living to 100 becomes normal?

With advances in medicine, technology, AI, and longevity research, there is a real possibility that many people today could live much longer than previous generations.

That raises some important financial questions:

• Will your retirement savings last long enough?
• How much more would you need to save?
• Will CPP, OAS, and pensions be sustainable?
• Will working longer become the new normal?
• How should your investment strategy change?

In my latest article for BusinessByMoney, I explore how longer life expectancies could reshape retirement planning and what it means for your financial future.

The goal is not just to live longer. It’s to stay healthy, active, and financially secure for longer.

CLICK THE LINK BELOW TO READ THE ARTICLE BY IVELINA NUMEROVA:

Living to 100 and Beyond: Ed Rempel on the Financial Reality of Longer Lives

The idea of living past 100 once felt distant. Today, more and more people are hitting the century mark. For Canadians planning their financial future, that raises a serious question. Will their retirement savings last long enough?

Toronto-based certified financial planner Ed Rempel says this topic needs more attention. In a recent blog post, he discusses how longer, healthier lives could change retirement planning and why many current strategies don’t work as they should.

Rempel suggests the goal is not just to live longer, but to live well for longer, emphasizing the concept of “healthspan” over “lifespan.”

“The important issue is not just how long we live,” he writes. “It is how long we are healthy.”

Public perception has not yet caught up. Many people still associate age 100 with illness and decline. That mindset helps explain why only a small percentage of people say they want to live that long. When good health is part of the picture, attitudes change dramatically.

Longer lives are not a future concept. They are already here. Over the past century, life expectancy has steadily increased, driven by better nutrition, medical advancements, and improved living conditions.

Increased life expectancy is expected to accelerate in the coming decades, with living well past age 100 probably becoming common. The longevity movement has ignited because of AI which has led to a massive tsunami of billions of dollars in research. The movement has existed for decades, but now is advancing exponentially faster. We are likely to start living a decade or 2 longer in 10-20 years with all the medical advances.

Rempel says this trend has largely improved people’s quality of life. Older adults are staying active and engaged for longer. Many people in their 70s and 80s today are healthier than their counterparts of the same age in previous generations.

He also sees greater benefits. A longer, healthier population can contribute to more years in the workforce, supporting family structures across generations, and helping address declining birth rates in developed countries.

Rempel also adds a personal perspective, noting that mindset matters.

“Optimism is realism,” he says. “And optimists live longer.”

Rempel uses a simple example. A 30-year-old earning $100,000 plans to retire at 60 and live until 80. Now, extend that retirement to age 100. That adds 20 extra years without employment income.

The cost of that change is high. Investors would need to save much more during their working years if they have more conservative portfolios. For many, the required savings may not be realistic. Equity investors would probably need to save only modestly more.

Rempel is direct about the challenge: “How much more would you have to save?” he asks.

For many people, working longer may become the more realistic path. Extending a career by several years can help offset the added cost of a longer retirement, though the number of extra working years depends heavily on how investments are structured.

Longer life expectancies also put strain on retirement systems.

Programs like CPP and Old Age Security were not created for decades-long retirements. Rempel suggests that contribution rates may rise, benefits may change, and retirement ages may increase over time.

He is particularly cautious about the long-term sustainability of Old Age Security. With fewer workers supporting each retiree and longer payout periods, the system faces growing pressure.

Employer pensions are also changing. Many companies have already moved away from defined benefit plans toward defined contribution plans, shifting more responsibility to individuals.

The traditional model of retiring at 60 or 65 and living comfortably for a couple of decades may no longer hold. A longer life changes the math.

Rempel believes investment strategy will be a primary factor. Portfolios with long-term growth potential may offer more flexibility, while more conservative methods could limit options later in life.

At the same time, the idea of retirement itself may evolve. More people may choose, or need, to stay active in the workforce longer, whether full-time or in a reduced capacity.

Beyond the numbers, Rempel encourages people to think about purpose. Living longer brings opportunities, but also requires a reason to make the most of those extra years.

“What’s your why?” he asks.

A longer life could mean more time with family, more years of meaningful work, or simply more time to enjoy life. For Rempel, the outlook is positive. The possibility of staying healthy and active for decades beyond traditional expectations is something he welcomes.

Still, one message runs through his analysis: planning for that future cannot wait.

Ed

The post BusinessByMoney article – Living to 100 and Beyond: The Financial Reality of Longer Lives appeared first on Ed Rempel.

One of the most common things I hear from people (especially young adults) when they first sit down with me is some version of this:

“I feel behind.”

Behind financially.

Behind in their career.

Behind compared to friends, colleagues, or people they went to school with.

Sometimes they don’t say those exact words, but the feeling is there.

After more than thirty years working in financial planning, I’ve learned that this feeling is incredibly common. And most of the time, it has far more to do with comparison and expectations than with someone’s actual financial situation.

Usually, when people say they feel behind, they’re comparing themselves to others who seem further ahead or appear to have life more figured out. Underneath that comparison is often something deeper: a fear that they’ve made the wrong choices, missed an opportunity, or aren’t progressing the way they believe they should be by now.

If that sounds familiar, let’s start with something important:

Feeling behind financially is not a personal failure.

More often, it’s a response to unrealistic expectations and incomplete information.

The Financial Timeline People Think They’re Supposed to Follow

Many people grow up with an unspoken idea of how financial life is supposed to unfold.

Finish school.

Get a stable job.

Start investing early.

Buy a home.

Stay on track.

The problem is that modern life rarely follows such a straight path.

Careers change. Income often grows later than expected. Housing costs are higher. Debt loads are heavier. People return to school, change industries, care for family members, experience divorce, or spend years simply trying to establish financial stability before investing becomes a priority.

Yet the pressure to follow the old timeline remains.

As a result, many people assume they’re behind when they’re actually navigating circumstances that previous generations never faced in quite the same way.

What I’ve noticed over the years is that when people finally sit down and work through their finances properly, something shifts.

Whether it’s learning how credit works, creating a realistic plan, or simply starting to invest at a level they’re comfortable with, people often realize they’re not nearly as far behind as they believed.

The timeline stops feeling like a verdict and starts feeling like a starting point.

Why Financial Progress Often Feels Invisible

One of the reasons people feel behind is that early financial progress rarely looks impressive.

Learning about investing doesn’t create immediate results.

Building an emergency fund isn’t exciting.

Understanding taxes, debt, risk, and financial planning can feel slow compared to the success stories people see online.

But this quieter stage is where strong financial foundations are built.

Before investments can compound, understanding has to compound.

Early progress often looks like:

• Asking better questions
• Understanding risk more clearly
• Reacting less emotionally to money
• Making decisions with more intention and less urgency

None of these changes feel dramatic in the moment.

Over time, they become the difference between reacting to money and managing it confidently.

Comparison Distorts Financial Reality

Money comparisons are powerful, but they only show part of the picture.

You know your own doubts, fears, and financial uncertainties.

What you usually see from other people are visible milestones:

• Buying a home
• Taking vacations
• Talking confidently about investing
• Appearing financially secure

What you don’t see are the details behind the scenes:

• Family support
• Debt
• Financial stress
• Risky decisions
• Living paycheque to paycheque despite a high income

I’ve worked with people who looked completely successful from the outside but felt like they were failing.

I’ve also seen the opposite.

Someone might say, “I have a million dollars invested.” I don’t need to worry.”

But when we look closer, they’re spending $300,000 a year.

In that situation, one million dollars may not support the retirement they’re expecting. Realistically, they may need closer to four million dollars to maintain their lifestyle over the long term.

The conversation then becomes about aligning perception with reality.

I’ve also worked with people who save relentlessly because they’re convinced they’ll never have enough, sacrificing too much of their present life for a future they may never fully enjoy.

That’s why comparison can be so misleading.

Financial reality is almost always more complicated than appearances suggest.

Uncertainty Is the Starting Point

Many people believe they should wait until they feel confident before they begin investing or planning.

They want to wait until:

• They understand everything
• They earn more money
• They feel more prepared
• They feel less uncertain

But uncertainty is actually the normal starting point.

No one begins with complete clarity.

Markets are uncertain.

Life changes.

Priorities evolve.

When people come to see me for the first time, their concerns usually fall into one of two categories.

Some tell me they know very little about investing and need help understanding everything.

Those conversations are often the easiest because we simply take things step by step.

Others arrive with a great deal of financial knowledge. They can talk about derivatives, venture capital, investment products, and market trends. But despite all that knowledge, they struggle to connect everything into a plan that supports the life they actually want.

With those clients, I often say:

“Let’s start from the beginning. Let’s first understand your needs and then decide what tools make sense to get you there.”

Financial planning isn’t about knowing the most terminology.

It’s about understanding how all the pieces fit together.

Why Trying to Catch Up Often Backfires

When people feel behind, they often feel pressure to speed things up.

That’s usually when emotional decisions begin to creep in.

Over the years, I’ve seen people who would normally be cautious investors suddenly put significant amounts of money into speculative trends such as cryptocurrency, the marijuana boom, or overheated real estate markets.

Not because those investments fit a carefully considered strategy.

But because they felt they were running out of time and needed to catch up.

I’ve also seen people try to constantly time the market because they fear missing opportunities.

Most of the time, these decisions are driven by anxiety rather than strategy.

Progress made steadily, with understanding, is usually far more durable than progress driven by urgency.

Asking for Help Isn’t a Sign of Failure

Many people delay getting financial advice because they’re worried they’ll be judged.

They’re afraid they’ll be told they should already know more.

They’re embarrassed about mistakes they’ve made.

Or they’re worried they’re too far behind to fix things.

But asking for help isn’t an admission of failure.

It’s a decision to get clarity.

It’s a decision to understand your options.

It’s a decision to make choices intentionally rather than reactively.

Most people who build long-term financial stability don’t do it by guessing their way through.

They do it by seeking guidance, learning, and making informed decisions over time.

Financial Confidence Is Built, Not Inherited

One of the most important lessons I’ve learned is that financial confidence isn’t something people are born with.

Most people actually know more than they think they do.

They understand some of the tools. They recognize the terminology. They have pieces of the puzzle.

What they’re often missing is the ability to connect those pieces into a plan that reflects their goals, values, and circumstances.

Financial confidence develops through experience.

It develops through learning.

It develops through making decisions, adjusting, and continuing to move forward.

You don’t discover your risk tolerance by reading about it.

You discover it by living through market ups and downs and learning how you respond.

Confidence isn’t where people start.

It’s what they build.

One Last Reminder

If you’re feeling behind financially today, I would encourage you to pause and ask yourself:

Whose expectations are you trying to meet?

Often, the pressure people feel isn’t coming from their actual financial situation. It’s coming from an imagined timeline, a comparison to someone else’s life, or a belief that they should be somewhere different by now.

But financial lives rarely unfold in a straight line.

What feels like a delay often turns out to be preparation.

What feels like uncertainty often turns out to be flexibility.

What feels like being behind often turns out to be simply being early in the process.

After more than thirty years working with clients, I’ve learned that there is no single financial pace you’re required to keep.

If you’re learning, asking questions, and making deliberate choices—even slowly—you’re not falling behind.

You may simply be getting started in your own timing.

Financial confidence isn’t something people arrive with.

It’s something they build—patiently, thoughtfully, and with support.

Looking for Clarity?

As a fee-for-service financial planner, I work with people who want a clearer understanding of where they are today and which steps make sense to take moving forward.

Together, we look at your financial picture, your goals, and the decisions you face—without product sales or pressure.

If you’d like an objective, unbiased perspective on your finances, I’d be happy to start a conversation.

— Sabiha

The post Why Feeling Behind Is Normal (And What It Means for Your Money, Investing, and Financial Plan) appeared first on Ed Rempel.

Louise (not her real name) has far more money than she is ever likely to spend. She has always invested in equities and is comfortable with them. However, now at age 84, she is wondering whether she should invest more conservatively.

This is a case study about the “Multi-Millionaire’s Dilemma.”

Louise says:

“Many of my women friends have the same concern: Is my asset allocation suitable for me? Specifically, what proportion should I invest in GICs versus broad-market index ETFs? Tax efficiency is also a concern.”

In my latest blog post, video and podcast episode you will learn:

• What is the “Multi-Millionaire’s Dilemma”?
• How is Louise’s situation similar to the “Multi-Millionaire’s Dilemma”?
• What reasons might she have for investing more conservatively with GICs?
• What reasons might she have for staying invested in equities?
• How can understanding the odds of losing money and the potential for growth help her decide?
• What are the odds that her investments will be worth less at the end of her life?
• How much could they be down in a worst-case scenario?
• How much less is she likely to earn by switching from equities to GICs?
• How can she simplify her investments if she stays in equities?

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

Does this 84-year-old suffer from the ‘Multimillionaire’s Dilemma?’

Louise’s Story

At 84, Louise is looking to simplify her investment portfolio, minimize tax, and make sure she maintains her current lifestyle. This includes continuing to travel five to six times a year, albeit more locally than her past global adventures, and age in place in her home in Vancouver, bringing in any additional help she might need.

To this point, Louise has built and managed a portfolio largely composed of equities. About a year ago, she sold most of her stocks and now has $1 million in nine guaranteed investment certificates (GICs) in three different financial institutions currently paying out about 3 per cent every other month. She has $70,000 in dividend paying stocks, $80,000 in two equity exchange traded funds (ETFs), $220,000 invested in gold wafers, $110,000 in cash, $130,000 in a Tax-Free Savings Account and $110,000 in a Registered Retirement Income Fund, both also invested in GICs. 

Last year her annual income was $66,000 ($27,000 from an employer pension, Canada Pension Plan and Old Age Security, $3,000 in dividends and $36,000 in interest income from her GICs). Her largest expenses are monetary gifts to her family, 18 charities which include support of two Himalayan children, and personal costs. In total, she spends $10,000 a month to maintain her lifestyle. To meet shortfalls, she cashes in GICs.

“I am single with an independent Living Apart Together (LAT) partner and no children. I am not worried about leaving an estate and prefer to support people and causes while I’m alive,” said Louise, who is debt-free and in addition to her investments, also owns her condo valued at $900,000.

“I made a healthy portion of my net worth in the stock market, but as an octogenarian, I have to consider that I may not have enough time to recover from fallen growth positions in a downturn,” she said. 

“I am no longer concerned with FOMO. I just want reasonable placement of my investable dollars and simplification of my financial picture.”

To that end, she would like advice on what to do with her holdings in gold and whether or not she should stay almost exclusively invested in GICs or direct a portion to an all-in-one ETF or other investment. 

“Many of my women friends have the same concern: Is my asset allocation suitable for me? Specifically, in what proportion should I invest in GICs and broad index ETFs? Tax efficiency is also a concern.”

Ed’s Insights

Louise has $1,720,000 in investments and is 84. Moving to mainly GICs means her investment average return is down to about 3.2%/year – barely above inflation. Her money is parked. Average return only $55,000/year. It was almost $140,000/year average with investments growing in equities.

She only spends $66,000/year, so she won’t run out of money. She is in lower tax brackets, so tax-efficiency is only a moderate issue. Her income is comfortably below being affected by the OAS clawback and far above the level to be affected by the GIS clawback.

At age 84, if she is of average health, she has a 50% chance of reaching age 93 and a 20% chance of age 98. She should plan for at least 10-15 more years.

Bottom line: Louise has far more money than she needs and her life expectancy is likely 15 years or less. What investment allocation makes sense for her?

We call this the “Multi-Millionaires’ Dilemma”. We have seen it many times. Far more money than you will spend during your life. Continue investing for growth or switch to conservative?

Here are 2 possible ways to think about it:

Go conservative:

• She could decide to just avoid losing any money. Invest in GICs to avoid being down at the end of her life.
• Her portfolio is her security. I meet wealthy people that say, “I’m already rich. Why make more? I just have to avoid making a mistake and losing it.”

Continue investing for growth:

• She was comfortable with her equity investments, so she could choose to just keep the investments she had. The odds of her equity investments growing during her life are very high. Over the long run, equities have crushed everything else. If you look at the last hundred years, stocks have returned about 10%/year on average. She could easily live another 10-15 years or more. That is long enough for compounding to still matter a lot.
• Her money is her freedom. More money means more options in life. She can enjoy it or give more to her family or causes important to her.
• The “multi-millionaire’s dilemma” can be insightful. The classic version is this: She has far more money than she will ever need. If she was walking down the street and found a $100 bill, would she bother to pick it up? She does not need the money and it takes a little effort to pick it up. On the other hand, it’s easy to pick up and only takes a second. What would she do? Similarly (but not as simple), if she is comfortable with equities and highly likely to have them grow, why not?

General questions are often clearer when you see the numbers.

• What are the odds that her investments will be down at the end of her life?
• How much are they likely to be down in the worst-case scenario?
• How much less is she likely to make by switching to GICs from equities?

The “Max Loss” is per $1 million of her portfolio.

To understand this, if she lives 10 more years, the worst 10-year return in the modern stock market was a loss of 1.4%/year. If this worst-case happens, she would be down 14%, or $245,000. Her $1,720,000 portfolio would be down to $1,475,000. That is not a lot with the size of her portfolio.

In 10-year periods, the markets have been down only 3% of the time, so it is quite unlikely she would be down and not recover during the next 10 years. By being in GICs vs. equities for the next 10 years, the average return she could expect to lose would be about 5%/year (3% return of GICs vs. equity return conservatively 8%/year), or at least $860,000 in lost growth.

In 20-year periods, there has not been a loss. The worst case is a gain of 6.5%/year and she would gain $1,291,145 on each million she invests. The worst-case scenario is over 20 years is great news!

Looking at the numbers for 10 years or longer, the case for staying in equities is quite strong. She is likely to be $860,000 or more ahead with only a 3% chance of being down a little bit.

There is, of course, a risk that equities could lose more or make more than these figures. Nothing is guaranteed. But looking at expected returns based on history can make the decision much clearer.

For Louise, any option could be fine. It is up to her. Staying in equities when she was comfortable with them and can make far more could make sense. Avoiding any loss could also make sense.

If she stays with equities, she can simplify by buying one broad-based equity ETFs like the MSCI World Index or S&P 500, or working with a portfolio manager to look after it for her.

Ed

The post National Post article: Does this 84-year-old suffer from the ‘Multimillionaire’s Dilemma?’ appeared first on Ed Rempel.

Have you ever stopped and really asked yourself:

“What does money mean to me?”

As financial advisors/ planners, we spend so much time talking about returns, projections, and strategies that we sometimes forget the most important element in a financial plan — the client’s relationship with money.

Over the years, I’ve learned that before we talk about investments or retirement, we need to talk about meaning. Because money isn’t just numbers — it’s emotions, values, fears, hopes, and identity.

What Money Means to Me

Personally, money represents comfort and care — the ability to make life smoother not only for my immediate family but for my extended family too. It means being able to provide, support, and uplift. And if it means working harder or longer for that, I’m prepared to do it.

But that’s my meaning — and each person has their own.

What Money Represents to Different People

For some, money is:

• Power“I can do what I want. I’m in control. I’m strong.”
• Happiness: “If I have enough money, I can solve every problem.”
• Security: “My family and I are safe if our finances are safe.”
• Freedom: “Financial independence will give me the life I want.”
• Love: “Money makes relationships easier. People will value me more.”
• Respect: “I worked hard and earned this — I deserve recognition.”

None of these meanings are right or wrong. But they are important — because they drive decisions.

Why Understanding Money Values Matters

When we know what money truly represents for you:

• Your financial goals become clearer
• Your priorities fall into place
• Your behaviours make more sense
• And your plan becomes realistic rather than idealistic

Sometimes people chase goals that don’t align with their values at all. That’s when stress, guilt, or impulsive decisions happen.

So before planning, investing, or budgeting, it’s worth asking: Is the way I think about money actually practical? Does it support my life decisions — or sabotage them?

Money Is a Tool — Not the Goal

This is the most important part. Money is simply a tool — one that helps you create:

• Financial independence
• A comfortable lifestyle
• A buffer against uncertainty
• Opportunities for your family

But it’s not something we can control perfectly. And it won’t last forever unless we manage it wisely. Note that I say manage money — not “being debt-free,” “cash-rich,” or “asset-rich.”

Because proper management is what actually helps you reach your goals.

Three Principles I Live By and ask our clients to do so.

1. Make your money work for you.

Invest it wisely.

Don’t fear calculated risk.

Historically, staying invested through market ups and downs has always paid off.

2. Be your own advisor — but don’t go it alone.

Use experts who understand your values.

A good financial planner is like a money doctor:

they diagnose, treat, and guide with care.

3. Don’t let money ruin your life.

Don’t stress.

Don’t obsess.

Don’t compare.

Focus on your goals, your plan, and your journey.

And of course — Keep smiling.

Final Thought

Understanding your money values is the foundation of a strong financial plan. Once you know what money truly means to you, the rest becomes clearer: Your goals. Your decisions. Your path.

Money or wealth is not the destination. It’s just the vehicle.

The post What Does Money Mean to You? appeared first on Ed Rempel.

For more than 20 years, Unconventional Wisdom has been where I share financial planning ideas, strategies, and lessons I’ve learned from helping Canadians build better financial lives.

Today, I’m excited to introduce someone who has been a key part of our team for the last 8 years: Sabiha Mukadam.

Many of you may not know Sabiha, but she works closely with our full-service financial planning clients and has become an important part of helping them build and maintain their financial plans.

Starting next week, Sabiha will be publishing new articles and videos every Tuesday, while my Thursday posts will continue just as they always have.

Sabiha shares the same planning philosophy that has guided my practice for decades, and I’m confident the advice she provides is the same type and quality of advice I give. 

You’ll see many of the same concepts and ideas discussed on Unconventional Wisdom, but through her own perspective, voice, and areas of focus.

In my latest video, podcast episode and blog post, you’ll learn:

• Why Sabiha decided to start writing for Unconventional Wisdom
• The role she plays with many of our full-service financial planning clients
• Why confidence with money rarely comes from waiting until you’re “ready”
• What you’ll find in her new Tuesday articles and videos, including Youth Corner and Advice from the Sage Owl
• How her practical approach helps people make better financial decisions without feeling overwhelmed

One thing I’ve learned over the years is that financial planning really isn’t about money; it’s about your life. It’s about knowing what you want, avoiding costly mistakes, and having a financial plan that actually works when real life shows up.

That’s always been at the heart of what we do at Unconventional Wisdom and Sage Collaborative Financial Planning.

And that’s why I’m really excited to introduce Sabiha and this new space she’s creating here on the blog.

Sabiha and I have been working together for eight years now, and she’s a key part of our team. She shares the same philosophy I built my practice on, and she’s also the main financial planner working with our full-service clients, doing ongoing reviews of their financial plans and helping them build strategies that actually make sense for the life they want to achieve.

One of the things I really appreciate about Sabiha is how she approaches all of this from a practical, real-life perspective. Financial planning can get complicated fast, but she has a way of helping people feel more confident and less overwhelmed by the decisions they’re making. I’m confident Sabiha will give you the same quality and type of advice I would give.

Now, let Sabiha tell you a bit about what she’s hoping to do here.

Thank you, Ed.

What I’m really excited about is being able to share what I’ve learned over the years in a way that people can actually use — not just understand the theory, but apply it to their own lives.

One thing I hear all the time, whether I’m speaking to clients or young people, is some version of: “I’m just waiting until I’m a bit more ready.”

I always smile a little when I hear that because the feeling of finally being ready rarely arrives the way people think it does. What I’ve seen over and over again is that confidence usually comes from taking the first step, not from waiting until the steps feel easy.

A lot of what I’ll be writing about builds on the core strategies that Ed has been using for decades, but in a way that helps people understand how these ideas actually fit into real life.

Things like why starting early matters more than starting perfectly, how to think about debt and credit honestly — because there’s a big difference between the kind of credit that holds you back and the kind that helps you build something over time, and how the decisions you make today can shape your options down the road.

I’ll also be spending a lot of time in the Youth Corner because the earlier you understand the bigger picture about money, the more flexibility and freedom you create for yourself later on.

In Advice from the Sage Owl, I’ll be writing about financial planning and decision-making in a way that reflects the real side of these decisions.

Because, in my experience, the numbers are rarely the hard part. It’s the hesitation, the uncertainty, and the feeling of not knowing where to begin. That’s what I really want to help people with.

Well, we’re really looking forward to this.

It’s a big expansion of my blog. My posts will continue every Thursday, just as they always have, and we’ll be adding Sabiha’s posts every Tuesday.

Take some time to explore Sabiha’s articles. I think you’ll find them well worth the read.

Thank you.

Ed & Sabiha

The post A New Addition to Unconventional Wisdom: Meet Sabiha Mukadam appeared first on Ed Rempel.

Every week, someone tells me they want to retire by 40.

My first question is always the same: why?

The FIRE movement promises freedom decades earlier than traditional retirement. 

Online, it’s often presented as a fairly simple formula: save aggressively, invest consistently, and escape the workforce early.

But in Canada today, is FIRE actually realistic — or has it quietly become a strategy mostly for high earners, extreme savers, and people willing to take bigger risks than they admit?

I recently sat down with Canadian Press reporter Kumutha Ramanathan to discuss what I’ve seen from real clients pursuing financial independence and early retirement.

No hype. No fantasy projections. Just the math, the psychology, and the tradeoffs people rarely talk about honestly.

Here’s what we covered:

• The income level where traditional FIRE actually starts becoming mathematically possible in Toronto
• Why one popular version of FIRE may actually be harder than the original approach
• The Canadian realities most FIRE discussions barely mention
• What early retirees often discover emotionally after leaving work decades early
• The five biggest mistakes FIRE communities consistently make
• Why disciplined savers can still end up with portfolios that are too small
• The difference between needing income and needing cash flow
• The first thing I ask anyone who says they want to retire at 40

In my latest video, podcast episode and blog post you’ll learn my full answers from the interview, including the parts most FIRE discussions tend to leave out.

CLICK THE LINK BELOW TO READ THE ARTICLE BY KUMUTHA RAMANATHAN:

Financial Independence, Retire Early: The Math Behind the Viral Money Movement

The dream is seductive: retire in your thirties, ditch the commute, and spend your days on your own terms.

The FIRE movement — “financial independence, retire early” — has attracted millions of followers across Reddit threads and YouTube channels, promising that aggressive saving and disciplined investing can buy your freedom decades earlier than expected.

Yet for Canadian millennials staring down $2,000-plus rents and stagnant wages, the question is increasingly blunt: is FIRE genuinely achievable, or is it a strategy reserved for the already comfortable?

Here are my complete answers from an interview with Kumutha Ramanathan from Canadian Press. If you are considering FIRE, these extra details are quite insightful.

1. The traditional FIRE model assumes a savings rate of 50–70%. In a city like Toronto, or other expensive Canadian cities, where a one-bedroom apartment now costs upwards of $2,400 a month, is that number mathematically achievable for the average millennial — or is FIRE quietly a strategy reserved for high earners?

The traditional FIRE model in Toronto is for higher income people, frugal couples or people either living extremely frugally or doing extremely aggressive strategies. In all cases, FIRE is not easy and you need a plan to get there.

For example, an average Millennial in Toronto earns about $75,000, which means they bring home $60,000, or $5,000/month (assuming they will maximize their RRSP). To retire on a similar income in 20 years, such as starting at age 20 and retiring at 40, they would need to invest about $4,000/month, leaving only about $1,000/month. Rent alone for a one-bedroom is typically about $2,400/month, so that is not possible. It could be possible to live on $1,000 for all other expenses if you can find a way to live rent-free, such as living with parents. Most would consider this extreme. A single person would need to earn about $140,000/year to make it work by saving $4,000/month and retiring 20 years later on $75,000/year.

For a couple with both earning $75,000/year, they should be able to save $4,000/month, so traditional FIRE is achievable. They bring home $10,000/month total, pay $2,400 rent and save $4,000, which still leaves $3,600/month for all other expenses, which is not especially tight. Retiring on $75,000/year total (not each) before tax is a reasonable, but it is a basic retirement lifestyle.

It is possible to achieve FIRE with a quarter to one half the cash flow used for saving by doing extreme leverage. For example, live with your parents for 2-3 years and save $125,000. Then take a 3:1 loan of $375,000 and pay interest only, reinvesting the tax refunds. That can achieve FIRE in a total of 20 years with far less cash flow – say $1,000/month instead of $4,000/month.

2. Beyond traditional FIRE, variations like Coast FIRE and Barista FIRE promise a softer path to financial independence. Are these more realistic for the average Canadian, and do you see them being successfully implemented with your clients in practice?

Coast FIRE and Barista FIRE promise a softer path because you semi-retire by quitting your job, but take a job you consider easy, such as barista or mowing golf course lawns or consulting part-time, to continue to make income for quite a few years. Ideas like Barista FIRE make FIRE quite a bit easier, but we actually don’t see them often. Most don’t want to quit their job until they are confident they will never have to work again. Instead of having to work as a barista for 10-20 years, they can have more freedom by working 2-3 more years with their full-time job with a similar result.

Coast FIRE is actually harder. It assumes you get ahead of your goal and then can keep working and stop saving because your portfolio alone can grow enough. FIRE is hard to achieve. Getting quite a bit ahead so you can coast is even harder.

Some people who achieved FIRE do something they enjoy that might make some money. However, the very important difference is that if you have achieved FIRE, you do not have to work. You have the confidence to know you are financially independent. Barista FIRE means you need a side income for quite a few years.

3. FIRE plans rarely account for Canada-specific realities — reduced CPP payouts from decades of missed contributions, no employer health benefits for potentially 30 years, and TFSA and RRSP limits not designed for early retirees. How significant are those blind spots, and how do you address them in a client’s financial plan?

These are usually not significant factors. If you retire at age 40, CPP is still 20-30 years away. Paying your own medical costs is usually only $500-1,000/year, and buying a private basic medical plan is not much more. RRSP and TFSA limits combined are close to 30% of your income which is not enough, so FIRE means you are also investing non-registered or doing leverage. Borrowing to invest can be something like a super-RRSP because the payments are fully tax-deductible and support a significantly larger investment than contributing the same amount to RRSP. For example, $5,000/year can be a small RRSP contribution or a payment on a $100,000 investment loan. Both are a $5,000 tax-deductible payment, but one supports $100,000 of investments.

4. In your professional experience, do clients who achieve FIRE in their mid-to-late thirties tend to report satisfaction, or do you see patterns of regret around the experiences and relationships they deferred during the accumulation years in the name of saving?

We have only ever seen satisfaction from achieving a difficult goal, financial freedom and a ton of time freedom. The ones we see have a Plan and are confident they have enough. They don’t worry that they may have made a mistake.

When I ask retired people how long it took for them to get used to not going to work, the typical answer is very short – 2-4 weeks – just long enough to realize it’s not just a vacation.

5. There is well-documented research around the psychological toll of early retirement, including the loss of structure, professional identity, and social connection. As a financial expert, how much weight do you give to those non-financial variables when advising a client who is pursuing FIRE?

All of these are real issues whenever you retire. It’s not just your salary you lose. It’s also your routine, your identity and your regular social connections.

We find most people in FIRE have specific reasons they want more time freedom and most are married. We discuss it, but most have it mainly figured out. If they don’t, then we ask if they are really ready or if they should just work a bit longer.

Many FIRE people don’t stop working totally. You can’t watch Netflix all day. Many keep doing some parts of their job that they enjoy, do some consulting, have a side hustle, or they volunteer or have hobbies. These can be a huge help with these emotional issues.

6. You work with clients across different life stages. Do early retirees come back to you struggling, financially, emotionally, or both? Is returning to some form of work more common than the FIRE community likes to admit?

Many plan something part time for fun before they quit their job. We find it quite rare that they are struggling a year or more later. Most figure it out beforehand or realize it in the first few months. The ones we see have a Plan. It’s not like they quit their job and then realize they don’t have enough.

FIRE people tend to love the time freedom and the money freedom. It is great for your self-confidence. The majority feel they have moved into a new very exciting part of their life.

7. If a 28-year-old sat across from you tomorrow and said, “I want to retire by 40” — what would your honest, unfiltered advice be? And what is the one thing the FIRE subreddits and YouTube channels consistently get wrong?

The first thing is we ask why. They need a why for their personal motivation, because FIRE is not easy. Then they need a Plan. What is their specific goal, how big a portfolio do they need by when, and what is the specific plan to get there? The Plan tells them how much they need to invest and the rate or return they need to get there. It usually means they need to be all in equities to be confident of a high enough long-term return. It also tells them which strategies they need, which may involve borrowing to invest, since FIRE usually requires taking bold steps.

The 5 biggest things the FIRE discussions miss are:

1.      FIRE usually requires keeping your foot on the gas all the time.

2.      You need confidence in equities long-term.

3.      You need to focus on the size of their portfolio and tax efficiency (not just the rate of return).

4.      You will need cash flow not income.

5.      FIRE is not easy to achieve so you need a Plan and to really go for it!

For example, they want to get the full return of equities, so they buy index ETFs, but they buy several ETFs including some with lower expected returns, which means they don’t end up with the full return of equities. Or they are not confident in the long-term return of equities, so they add fixed income or gold or something defensive, which drags down their returns.

You get a larger portfolio either by long-term compounding or borrowing to invest. People trying for FIRE often have good rates or return, but small portfolios. Borrowing to invest, such as a 3:1 No Margin Call loan get you ahead much faster than focusing just on return, since you start with a dramatically larger portfolio. These loans usually only allow broad-based mutual funds or ETFs, which might mean you can get ahead faster by letting go of some niche high-risk investment and get the loan instead.

Many FIRE people feel they need income, such as dividends or interest, to finance their lifestyle, but they need cash flow. Income is taxable cash flow. They can get cash flow with “self-made dividends”, which mean you just sell a bit of your growth investments each month. This process allows you to hold your growth investments right through retirement and is very tax efficient.

Ed

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