Build Wealth Canada Podcast

One of the most common questions I get, and honestly one of the biggest sources of anxiety for anyone nearing financial independence is: "How much can I spend without running out of money once I quit my job and start living off my investments?" It's one thing to see a big number in your investment account; it's another thing entirely to hit the "withdraw" button and start taking money out. Research, and my own experience shows that many Canadians end up underspending. They live a smaller life than they need to simply because they don't have a structured process they can trust. Some blindly follow the "4% rule," while others just live off dividends, pensions, and/or government benefits, never touching their principal. This often results in a massive amount of money left over when they pass away. That is money that could have been spent enjoying life, creating memories with family, or donating to charity, rather than leaving a giant inheritance, and a giant tax bill to the government. So, how do we find that balance? How do we calculate a spending number that is safe, but still lets us enjoy our lives? To answer this, I invited Thuy Lam back on the show. Thuy is a Certified Financial Planner with over 20 years in the industry who recently built my personal financial plan. We discuss the specific cashflow plan she created for us, and the relevant insights and best practices you can apply to your own situation. We dig into four critical areas: First, the "Safe Withdrawal" question: We move past the 4% rule and discuss how to determine a sustainable spending rate that factors in current market conditions. Second, the "Bucketing Strategy.": Thuy breaks down how to allocate your portfolio for short-term spending versus long-term growth. This is huge for keeping anxiety low when the market drops. "Stress Testing" your plan: We talk about why using a simple average rate of return (like 8%) is a dangerous mistake, and how Monte Carlo simulations can help you see if your plan survives extreme scenarios. Dynamic Spending Adjustments: We cover exactly when to tighten the belt if markets underperform, and how to safely increase spending if returns are high, so you don't die with a giant portfolio you never got to enjoy. We're going to cover all that and more. Enjoy the Episode! Links from the episode: Meet with Thuy: Free Introductory Meeting & Discount Link Free Access to my investing guide: What I Invest In and Why? (Kornel's Portfolio)

Danielle Nuzzel, an ETF educator at BMO ETFs, shares her expertise on common mistakes made by Canadian DIY investors. She cautions against relying on a single performance metric when analyzing ETFs. The discussion includes linking investments to personal goals and risk profiles, understanding fees, and uncovering hidden costs. Danielle highlights essential steps for comparing funds and the importance of examining underlying index track records. She also advises on how to avoid emotional biases in investing and stresses the need for thorough due diligence.

David Chilton, the renowned Canadian financial author behind The Wealthy Barber and a familiar face from Dragon's Den, shares insights on finding financial independence. He discusses the updates in his book, especially new tools like TFSAs, and emphasizes the importance of relatable storytelling in finance. David reflects on achieving work-life balance post-fame and the keys to happiness, revealing how helping others fuels his purpose. He critiques traditional safe withdrawal rates and recommends detailed retirement planning, making complex concepts accessible and engaging.

In this engaging discussion, Kyle Prevost, a Canadian personal finance podcaster and early retiree who has conducted over 400 interviews with finance experts, shares valuable insights on financial independence. He delves into the recurring advice he's gathered, emphasizing the importance of behavior over math. Kyle also discusses the 4% safe withdrawal rate and offers savvy travel tips to save money. He reveals what truly accelerated his net worth and how he maintains motivation after achieving financial freedom.

Join ETF strategist Aaron Allen from BMO ETFs as he delves into the essentials of index investing for Canadians. He highlights the advantages of passive investments over actively managed ones, underscored by robust research. Discover various DIY methods for building a portfolio and the nuances of asset allocation ETFs. Aaron also explores different fixed-income options, including bond ETFs, tailored to individual stability or growth goals. Tune in for strategies to optimize your investments across different accounts!

Alanna Abramsky, a seasoned financial coach with 30 years of experience, and Thuy Lam, a Certified Financial Planner with over 20 years in the field, share invaluable insights into achieving financial independence. They emphasize the crucial habit of tracking spending effectively, distinguishing between essential and discretionary expenses. The guests discuss personalized budgeting techniques, emotional challenges linked to spending, and innovative tools for financial management. Their practical advice encourages listeners to adapt financial practices to align with personal values and life goals.

Marc Beavis, a seasoned investor in his 60s with decades of experience and a popular YouTube channel, shares valuable insights on navigating the stock market's turbulence. He discusses his personal journey through major crashes like the 2000 tech bust and 2008 crisis, emphasizing the importance of having a solid investment policy to combat emotional responses. Listeners will learn strategies for maintaining calm amidst volatility, the benefits of diversification, and the value of journaling to reflect on past recoveries—tools that can empower investors to thrive in uncertain times.

Jessica Moorhouse, an accredited financial counselor with over a decade of experience, dives into the emotional and psychological barriers to financial freedom. She discusses common patterns like overspending and financial fears, emphasizing the importance of addressing these issues to create lasting change. Moorhouse also shares insights from her book, focusing on how upbringing shapes financial beliefs. Additionally, she offers practical advice for couples managing finances, highlighting the balance between joint and personal money for healthier relationships.

Today I'm excited to have a panel discussion with some of the largest personal finance and investing personalities, here in Canada. Together they have over 46 million views on YouTube (that's more than the entire population of Canada), and in this episode, I thought it would be great to pick their brains on how they actually invest their own money, what types of investments do they actually buy? what specific ETFs do they buy and what type of investing style have they found to work best for them? They also ask me the same questions so you'll get a pretty diverse view of the different options out there, for us Canadians, when it comes to investing. You'll notice too that while some of our styles overlap, we do also diverge in a few areas, and so we also tackle what are the pros and cons of the different styles, allowing you to make an informed and more educated decision, on what is the best fit for you. Saily Discount Link Mentioned in the Episode: Get an exclusive 15% discount on Saily data plans! Go to saily.com/buildwealth or download the Saily app on your phone and use the code "buildwealth" at checkout. Questions Covered: Let's start by introducing the panel. Brandon, can you start by telling us a bit about yourself, your area of expertise, roughly how much you currently invest in ETFs, and tell us about the investing style or strategy that you've chosen for yourself. To kick things off, I thought it would be good to start with what I consider, one of the easiest investing styles to implement and get started with, while also being extremely effective, very passive, and low cost. Brandon, as you can probably guess, I'm of course talking about asset allocation ETFs which you mentioned is your preferred investing style. For anybody new to this, can you explain what asset allocation ETFs are, and then go into why you chose this as your primary investing style, along with the ETFs that you actually buy and why. Let's open it up to the panel: Does anybody else here buy asset allocation ETFs? Why or why not? And if you do, what specific asset allocation ETF do you buy? Adrian, you like to buy the underlying ETFs, instead of just one asset allocation ETF. For anybody new to this, can you explain what that actually means, why you choose to invest in this way, and can you share specifically which ETFs you like to buy as part of this investing style. Let's open it up to the panel: Does anybody else invest in this way, and if so, what are your favourite ETFs, and give us some explanation on why you chose them and this style of investing. Are there any negatives that you think are worth mentioning when it comes to this investment style of buying the underlying ETFs? Marc, so far our conversation has been dominated a bit by equities (the stock portion of the portfolio), but of course, fixed income is also something that most investors find to be a good fit, especially since not everyone can stomach having a 100% equity portfolio and dealing with those occasional 30% or 40% drops and just riding those out and not panic selling. You have some focus on fixed income in your portfolio which can help reduce that volatility. Can you take us through your thought process on having these types of investments, along with which ones you like and why? Thanks Marc. Would anybody from the panel like to add anything to the fixed income discussion? Are there any fixed income ETFs that you like to buy? Adriano, let's talk about your investing style now. Yours is a bit different from the vanilla, total market, index investing strategy that most of us on this panel use. Can you speak to why you chose your particular investing style, the pros, the cons, who is it for, and do you have any favourite ETFs or other investments that you like to use as part of it? Let's open it up to the panel: Do you have any questions, concerns or comments?

Join Jason Heath, a seasoned Certified Financial Planner and personal finance columnist, as he dives into the crucial tax and investing changes coming in 2025. He discusses how new TFSA contribution limits of $7,000 can impact retirement strategies and sheds light on evolving capital gains tax proposals that could dramatically affect taxpayers. The conversation also covers the importance of staying informed about tax implications for trusts and the advantages of effective financial planning to maximize net worth and benefits.