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How much do you know about financial independence?

Nov. 12, 2022, 7:27 a.m.
Posts: 18444
Joined: Oct. 28, 2003

Most critical to your financial well-being is that you and your partner are on the same page, working together for the same goals.  Talk about it.  Share open finances together.

Nov. 12, 2022, 9:07 a.m.
Posts: 2594
Joined: Nov. 23, 2002

Posted by: Vikb

Posted by: heckler

Not sure which, the graphics are kind of poor quality.

Misogynist cartoonists aren't plying their trade as much these days. So you have to dig into the archives to find tropes like this.

crikey boys, kinda feel sorry you're so uptight that you can't have a laugh from that one.

Nov. 12, 2022, 3:46 p.m.
Posts: 15697
Joined: May 29, 2004

Posted by: syncro

Posted by: Vikb

Posted by: heckler

Not sure which, the graphics are kind of poor quality.

Misogynist cartoonists aren't plying their trade as much these days. So you have to dig into the archives to find tropes like this.

crikey boys, kinda feel sorry you're so uptight that you can't have a laugh from that one.

I laughed.....because its true.

Nov. 15, 2022, 7:40 a.m.
Posts: 507
Joined: June 17, 2016

Perhaps the person approaching from the other direction is a Big 6 bank financial "advisor" (a.k.a. sales person) trying to sell high MER actively managed mutual funds?

Nov. 15, 2022, 4:47 p.m.
Posts: 16811
Joined: Nov. 20, 2002

Posted by: niels@nsmb.com

Perhaps the person approaching from the other direction is a Big 6 bank financial "advisor" (a.k.a. sales person) trying to sell high MER actively managed mutual funds?

No exaggeration, I lol'd

Nov. 17, 2022, 1:40 p.m.
Posts: 507
Joined: June 17, 2016

Updated my forward looking spreadsheet with next year's higher $6500 TFSA limit and additional $8000 RRSP room through FHSA.

Things are looking pretty good despite inflation and market downturn. Super glad I got on this train. I switched to low cost index funds on Dec 26, 2014, 20 days after Heckler started this thread. 

My old friend from uni who makes 2X what I make and is day trading crypto on the side told me he wants to retire early and gave his projection (X years from now). I gave mine in return (X-10) and thought it may help my pitch for living below one's means and investing in passive index funds. Instead he looked at me as if I was trying to lure him into a ponzi scheme, lol.

Nov. 17, 2022, 2:19 p.m.
Posts: 507
Joined: June 17, 2016

Posted by: heckler

I'm curious if we're all invested in carbon frames and tubeless tires, or if there are people other than the two others I can think of that are on the financial independence program.

Some fun numbers for the duration of the thread (in percentages of my after tax income):

2014 - 34% savings rate / 5.6% spent on bike related stuff

2015 - 46% / 6.6%

2016 - 45% / 2.0%

2017 - 48% / 6.9%

2018 - 40% / 3.7%

2019 - 53% / 0.8%

2020 - 49% / 7.3%

2021 - 69% / -1.9%*

2022 - 63% / 2.3% (so far)

* Bike spending is net after selling used gear, the 2021 negative number is due to buying new bike in 2020 but only selling the old one in 2021 due to Covid


 Last edited by: niels@nsmb.com on Nov. 17, 2022, 2:20 p.m., edited 1 time in total.
Nov. 17, 2022, 4:47 p.m.
Posts: 18444
Joined: Oct. 28, 2003

Kick Ass Niels!

My mom was surprised when I told her my total portfolio is positive for YTD (including contributions), where their "safe" 50/50 high fee CIBC funds are down more than 10%. They're 80 years old and won't take my low fee index self directed advice, in case it fails (in a way, I'm happy for that). But I was happy to be able to explain to her why her 50% bond allocation crapped out this year, but will fill in the next 8-10 years (if they live that long, shiiiitt....) They also have terrible asset location for taxes, and hardly any US exposure.

One new point of learning for me, in case I or my spouse should die early.

TFSA Beneficiary vs TFSA Successor Holder.

https://www.canada.ca/en/revenue-agency/services/tax/individuals/topics/tax-free-savings-account/death-a-tfsa-holder/successor-holder.html

Define your spouse to be a Beneficiary, they will receive your TFSA in cash, to be invested in their own accounts. Thus their TFSA limit stays the same.

Define your spouse to be a Successor Holder, then your TFSA moves to their ownership as a TFSA. Thus their TFSA limit doubles, saving gobs in future taxes.

We signed the forms. They're hiding in your TFSA account brokerage somewhere.

(I hope I understood the meaning correctly!  If there are any tax law accountants out there, please pipe up!)


 Last edited by: heckler on Nov. 17, 2022, 5:09 p.m., edited 3 times in total.
Nov. 17, 2022, 7:58 p.m.
Posts: 507
Joined: June 17, 2016

Yep we changed beneficiaries to successor holders on our TFSAs last year. Recommended.

Nov. 22, 2022, 4:12 p.m.
Posts: 18444
Joined: Oct. 28, 2003

We recently had a discussion - why don't we get ourselves some jobs that provide a pension? Government, teacher, union, etc... Some of our parents have one or several, hell my mom gets some money from Germany for when she was a bricklayer for a year after highschool!

I can't picture what that job would be. Outside of CPP/OAS, my 3 jobs have matched 5% to my RRSP, that's it. The better half is fully self-reliant on her own future, given the jobs held.

Nor would I want to work the next ten years to get a pension! The past 8 years of being a mini-capitalist has been sufficient to get the snowball rolling - that's evident to me this past year.

PS - yesterday was N.B.D., so still "investing" in carbonium too. But also sitting at 48% Net savings rate this year. It plummeted from a one-year peak of 75% in 2018 when my RSP maxed out.


 Last edited by: heckler on Nov. 22, 2022, 5:13 p.m., edited 2 times in total.
Nov. 22, 2022, 4:37 p.m.
Posts: 1748
Joined: July 11, 2014

Issue is finding a DB pension outside of the public sector. You can do the math on how much of a paycut you'd have to take going private to public to make the DB pension worth it (depends on your age, expected DB benefit, expected market returns etc). Depending on your field you are probably better off making more money in the private sector and managing your retirement. Some people hate anything to do with financial planning and the peace of mind of DB is worth a lot to them.

I'm lucky, my employer contributes 7% of my gross salary/bonus to a DC plan. I contribute nothing as they don't match further contributions and I'd rather the rest goes into my self directed portfolio.

Nov. 26, 2022, 9:39 a.m.
Posts: 18444
Joined: Oct. 28, 2003

Canadian version of 2021 asset class returns periodic table, one of my favourite chemistry lessons.

https://www.franklintempleton.ca/en-ca/planning/investor-education/why-diversify

(see the Download the Why Diversify investor flyer, which they seem to have protected from sharing somehow)


 Last edited by: heckler on Nov. 26, 2022, 1:22 p.m., edited 4 times in total.
Nov. 26, 2022, 10:15 a.m.
Posts: 15627
Joined: Nov. 20, 2002

A buddy of mine drove a school bus for not very long maybe a couple years so recently  he quit in disgust and he gets a pension or he can take a 6K  payout so he took the cash

Nov. 26, 2022, 10:32 a.m.
Posts: 15627
Joined: Nov. 20, 2002

Posted by: grambo

Issue is finding a DB pension outside of the public sector. You can do the math on how much of a paycut you'd have to take going private to public to make the DB pension worth it (depends on your age, expected DB benefit, expected market returns etc). Depending on your field you are probably better off making more money in the private sector and managing your retirement. Some people hate anything to do with financial planning and the peace of mind of DB is worth a lot to them.

I'm lucky, my employer contributes 7% of my gross salary/bonus to a DC plan. I contribute nothing as they don't match further contributions and I'd rather the rest goes into my self directed portfolio.

I think private sector DB pensions are long gone, also some of those private sector DB pensions are now underfunded so there is not enough money to take care of the retirees

I had to do the math & choose between DB and DC quite awhile ago ( I think 25yrs ago ) I was young/had enough years so the DB was the obvious choice and that particular pension fund is still close to 100% funded

I think you are right tho about paycut, that cradle-to-grave model had to be funded somehow so while I honestly didnt really make a lot of money there were a lot of benifits included and its looking like a pretty good deal right now

but that model and those days are long gone so take the money and run


 Last edited by: XXX_er on Nov. 26, 2022, 11:44 a.m., edited 5 times in total.
Nov. 28, 2022, 9:55 a.m.
Posts: 15627
Joined: Nov. 20, 2002

Bill C-228 is an important one for old fucks with a DB pension becuz it helps adress the underfunded pension for insolvent companies eg Nortel, Sears

and its already in the Senate, I think it will pass unanimously

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