When we first start our do-it-yourself investing journey here in Canada, almost all of our focus is understandably on the accumulation phase. We are diligently saving, maximizing our TFSA and RRSP contributions, and figuring out the right asset allocation of low-cost index ETFs to grow our wealth.

But what happens when you actually hit your number? What happens the day after you reach financial independence, and you can finally quit your job to design the exact life you want?

People often think that it is all pure bliss, but for many of us, a whole new wave of anxiety sets in. Suddenly, you are shifting from building your wealth to actually spending it. The fear of future stock market crashes becomes very real, and it can be surprisingly difficult to say “no” to extra work, or you might find yourself becoming overly frugal just in case something bad happens.

In this episode, we are tackling this massive psychological and mathematical shift, and learning how my guest Stephanie and her wife Gillian tackled this challenge after retiring in their 30s and 40s here in Canada to travel the world. We discuss exactly how they did it, and how they manage their finances now to avoid running out of money while living off their portfolio.

Here is a breakdown of what we tackle in this episode:

• Their Decumulation Blueprint: How Stephanie and Gillian structure their annual withdrawals so they can travel without the fear of running out of money.
• Protecting Against Market Crashes: We discuss using cash cushions, fixed income, and if they use any specific rules for when to sell equities to refill their cash buckets.
• Lifestyle Design and Overcoming Anxiety: We cover the psychological side of things. We explore how much is “enough”, how they master the management of everyday cash flows while in retirement, and how you can actually find fulfillment once you no longer have a 9-to-5 job.

In case you haven’t heard of Stephanie and Gillian, they document their incredible early retirement journey and share practical financial lessons over on their website, OurFreedomYears.com, as well as on their popular YouTube channel, Our Freedom Years. They have a wealth of knowledge when it comes to the realities of living off a portfolio as Canadians, and I’m thrilled to have Stephanie on the show.

Let’s get into the interview.

Links from the episode:

Stephanie and Gillian’s Website: OurFreedomYears.com

Stephanie and Gillian’s YouTube Channel: Our Freedom Years

You can also catch them on Instagram Here

A Big Thanks to Our Sponsors:

TELUS Online Security

I’ve been using TELUS Online Security to keep my family’s and my devices secure across our entire home, and when we are away travelling with the kids. My favourite part about the service is that it’s a comprehensive, all-in-one suite of tools that have everything that I need to maximize our security, all within a single app. 

Instead of having to deal with multiple companies and services to cover all my bases when it comes to security, I instead now have everything that I need in one place. This makes things easier to manage, is more cost effective, and the app is very intuitive and easy to use, so it’s really nice not to have to learn a separate app for every component of our online security (i.e. anti-virus, VPN, dark web monitoring, malware and ransomware scanning, and many more). 

A big thanks to TELUS for putting all this together in an affordable and easy-to-use package. It’s really nice to have that piece-of-mind knowing that the family and I have all our bases covered when it comes to our online and device security. 

Check them out over at TELUS Online Security. Plans start at just $12/month.

BMO Asset Allocation ETFs: One of the Lowest Cost Options in Canada:

Do you keep hearing about these “All-in-one ETFs” lately? Well, I have some exciting news:

BMO ETFs just cut the fees on their flagship all-in-one ETFs to 0.15% making them one of the lowest cost options in Canada. That’s right – more value, same smart diversification, all in a single ETF.

Whether you’re just starting out, or simplifying your portfolio, BMOs all in one ETFs make it easy to invest with confidence.

Just Zed it and forget it by considering ETFs like ZEQT, BMO’s All Equity ETF or ZGRO, BMO’s Growth ETF.

“Views from the Desk” Podcast

On this podcast, we often cover best practices that can not only help you now, but will also be relevant throughout your investment lifetime. But what if you also want an update on what is happening with your investments, the markets, and the economy right now?

To help me stay up-to-date on these topics, a great Canadian podcast that I listen to weekly is called “Views from the Desk” (Apple, Spotify).

They provide timely information for us Canadians on what is happening to our investments right now, as well as other key factors affecting us like changes to our interest rates, our inflation, and regulatory changes that we should know about.

The podcast is hosted by BMO ETFs. I’m a huge fan of theirs, I own a lot of BMO ETFs myself, and it’s a great free resource for both new and existing ETF investors.

I hope you check them out. All episodes are available for free in your favourite podcast player. Just search for “Views from the Desk” or click one of the links below:

• Apple Podcasts
• Spotify

ETF Market Insights and BMO ETFs

Catch the latest episodes on YouTube Here.

There are so many opinions on how to invest your money today, but it can be hard to find credible voices to rely on in the world of finance and investing.

One resource I turn to every week is the ETF Market Insights YouTube channel, led by today’s episode sponsor, BMO ETFs.

Market Insights brings in industry experts and their weekly episodes cover the hottest themes like inflation, infrastructure, healthcare, and more. Tuning in helps me stay up-to-date on what’s happening so I can be a smarter investor. You can also submit your own ETF questions, to be answered on the show.

Do yourself a favour and subscribe on YouTube to ETF Market Insights, or visit ETFMarketInsights.com so you can be notified when future episodes go live.

BMO Asset Allocation ETFs:

Asset allocation explains over 90 per cent of the variation in a portfolio’s quarterly returns, so it’s no wonder Canadian investors are turning to these ETFs!

Today’s sponsor, BMO ETFs, offers these innovative all-in-one solutions with the BMO All-Equity ETF (ZEQT), BMO Growth ETF (ZGRO), BMO Balanced ETF (ZBAL), BMO Conservative ETF (ZCON), and more. BMO developed these to help provide investors with ETFs that offer broad diversification and are also low-cost and simple to use.

These ETFs invest in a number of underlying index based ETFs and are rebalanced automatically back to your set asset allocation or mix of stocks and bonds. They offer a hands free approach to investing that is built on disciplined weights to provide exposure to different geographies and sectors all in one solution.

BMO actually offers eight asset allocation ETFs. Learn more at BMOETFs.com.

Disclaimer:

This podcast and video is for information purposes. The information contained herein is not, and should not be construed as, investment, tax or legal advice to any party. Particular investments and/or trading strategies should be evaluated relative to the individual’s investment objectives and professional advice should be obtained with respect to any circumstance. Commissions, management fees and expenses all may be associated with investments in exchange traded funds. Please read the ETF Facts or simplified prospectus of the BMO ETFs before investing. Exchange traded funds are not guaranteed, their values change frequently and past performance may not be repeated. For a summary of the risks of an investment in the BMO ETFs, please see the specific risks set out in the BMO ETF’s simplified prospectus. BMO ETFs trade like stocks, fluctuate in market value and may trade at a discount to their net asset value, which may increase the risk of loss. Distributions are not guaranteed and are subject to change and/or elimination. BMO ETFs are managed by BMO Asset Management Inc., which is an investment fund manager and a portfolio manager, and a separate legal entity from Bank of Montreal. BMO Global Asset Management is a brand name under which BMO Asset Management Inc. and BMO Investments Inc. operate. “BMO” is a registered trademark of Bank of Montreal, used under licence.