Why your Portfolio needs more than Growth Stocks

Posted By Financial Independence Hub | June 24, 2026

Nearing financial independence? Growth stocks alone may leave gaps. Find out how a broader, more diverse portfolio can support income and stability.

By Dan Coconate

Special to Financial Independence Hub

As you move closer to financial independence, understanding why your portfolio needs more than just growth stocks can help you make clearer decisions.

Growth stocks often attract attention during strong markets because investors expect future earnings to increase over time.

While that potential can be valuable, these investments can also experience drastic declines when market conditions change. A portfolio that includes different sources of return may provide a steadier experience and help support your goals through a wider range of economic environments.

Growth Stocks do not always Lead

Growth stocks often perform well when investors are optimistic about the future and willing to pay more for expected earnings. The challenge is that market leadership shifts over time, and periods of strong growth-stock performance are often followed by stretches when other investments take the lead.

As you approach Financial Independence, relying too heavily on one investment style can increase your exposure to timing risk. If market conditions turn negative just as you begin making withdrawals, you may be forced to sell investments at lower prices than expected.

Income adds more Breathing Room

Many Canadians pursuing Financial Independence want their investments to do more than simply grow in value. They also want their portfolio to support everyday spending needs without requiring constant asset sales. Investments that generate income can play an important role in creating that flexibility.

Rather than depending entirely on future appreciation, a diversified portfolio can offer a combination of growth potential and ongoing cash flow. This approach may help you feel more comfortable during market downturns.

Inflation Changes the Picture

Inflation directly affects your lifestyle by gradually increasing the cost of living. Even modest inflation can reduce purchasing power over a long Financial Independence journey. For that reason, some investors explore additional ways to diversify their portfolios.

Discussions around real assets and investing in commodities often arise because these investments may respond differently to inflationary pressures. The goal is not to own everything, but to understand whether your portfolio has enough variety to handle changing economic conditions.

Risk feels Different near Financial Independence

Risk takes on a different meaning once you are no longer relying on employment income to support your financial goals. During your working years, market declines may feel temporary because new contributions continue to flow into your accounts.

Near Financial Independence, however, a significant downturn can have a larger impact because withdrawals may begin at the same time. A broader mix of investments can help reduce the influence of any single market trend and provide a more resilient foundation for the years ahead.

A Wider Mix builds more Confidence

You do not need a complicated investment strategy to make meaningful progress toward Financial Independence. In many cases, a simple and diversified portfolio can provide a stronger foundation than one built entirely around growth stocks. Understanding why your portfolio needs more than growth stocks encourages you to think beyond returns alone. A wider mix of assets can help stabilize your finances and make it easier to stay committed to your plan.

Dan Coconate is a local Chicagoland freelance writer who has been in the industry since graduating from college in 2019. He currently lives in the Chicagoland area where he is pursuing his multiple interests in journalism.

Is an AI Bubble Inevitable?

Posted By Financial Independence Hub | June 23, 2026

By Mark Seed, myownadvisor

Special to Financial Independence Hub

Is an AI Bubble inevitable? That was the subject of Ben Carlson’s post of late.

In that post:

“There’s the old saying that those who fail to study history are doomed to repeat it. You could also make the case that those who live and die by the past are doomed to be overconfident in their forecasts about the future.”

Which is why we’ve seen this drill before and I believe there is a three-step plan to consider on that, as outlined in my post from December.

From that post here are my core ideas:

Cut back on dividend reinvestment plans/DRIPs. Why??? In doing so, you are instantly raising your cash/cash equivalents pile for near-term spending in case things tank.
Trim individual stock holdings. Why??? While holding individual stocks can be amazing for income and growth, I know from experience they also expose me to some concentration risks: company or sector risks. So, to avoid that, I can trim individual holdings and simply index invest when in doubt.
Hold more cash. Why??? Aligned to #1, we did this prior to retirement, in that in case markets collapse we have cash to spend and should they continue to run higher, well, we’ll just have more money to spend for the travel we are now enjoying in retirement…

Readers, tell me, what’s your take on market bubbles, speculation on market bubbles or like me, really don’t care too much??

Mark Seed is a passionate DIY investor who lives in Ottawa. He invests in Canadian and U.S. dividend paying stocks and low-cost Exchange Traded Funds on his quest to own a $1 million portfolio for an early retirement. You can follow Mark’s insights and perspectives on investing, and much more, by visiting My Own Advisor. This blog originally appeared on his site on June 6, 2026 and is republished on Findependence Hub with his permission

5 keys to a great Retirement

Posted By Financial Independence Hub | June 22, 2026

By Fritz Gilbert, RetirementManifesto.com

Special to the Financial Independence Hub

Can you imagine having the opportunity to study two decades worth of retirement research, and gleaning the keys to a great retirement from the experts? I recently had that opportunity when I took the time to read a 90-page study titled “The Experience Of The Transition To Retirement,” a study that filtered through 1,800 research papers!

Today, I’m summarizing the results from that study and presenting to you 5 Keys To A Great Retirement, along with additional findings from this extensive research.

Using Research To Improve Retirement

The goal of this research project was to understand what led to successful retirement transitions and to “better understand how best to help individuals navigate this transition”, as well as “how to improve the quality of post-retirement life”. Valuable information from which you, the reader, can benefit.

Before I present The 5 Keys To A Great Retirement, there are some findings in the study which I found interesting. For the sake of brevity, below is a list in bullet form. Note that the study did focus on gender/socioeconomic/ethnic/cultural differences, so it’s best to read the findings with that in mind:

25% of retirees experience difficulties in the transition to retirement.
Men tend to have more positive attitudes toward retirement and be more engaged in planning for retirement than women.
Based on the studies, women appear to have greater difficulty in adjusting to retirement than men.
Those in higher Socioeconomic positions tend to work longer than those in lower positions.
Being married is associated with greater preparedness and a more proactive approach to planning for retirement.
Where work is important to an individual’s identity, retirement causes more conflict and anxiety.
Nearly half of those aged 50 and over said that they expect to retire later than they had thought they would.
Governments from around the world have enacted policies that seek to reverse an ‘early exit culture’ and extend the length of people’s working lives, maintaining economic productivity and reducing social spending.

Yes, there was a lot of interesting information in those 90 pages (trust me, I read every page). Boiling it all down, below are my takeaways on what comprises the 5 Keys To A Great Retirement.

1.) Control Your Destiny

The first finding was that those who felt they had the most control over their retirement decision were also those who most enjoyed their transition into retirement. To quote the study:

“One of the most consistent and convincing findings in this review is that a sense of control is associated with positive retirement outcomes.”

While you may feel that you don’t control your retirement as much as you’d like, the reality is that there are a lot of areas in your retirement planning where you can influence the results. Simply taking the time to prepare for your transition into retirement (See Key #2) is, in itself, exerting some control over your destiny.

Don’t leave your retirement to chance.

Given that you’re reading a blog on retirement, you’re likely ahead of your peers in tackling the first of these Keys To A Great Retirement. You’re taking control of your retirement, and your retirement will be better as a result.

2.) Imagine What Your Retirement Will Be

The second of the 5 Keys To A Great Retirement was the finding that those who took time before retirement to imagine what their retirement would be were also those most likely to have a good retirement. Think beyond finances. Finances play a small role post-retirement, and yet most folks think most about the financial implications of retirement when preparing for the transition.

Broaden your scope, and spend time thinking about what you want your retirement to be. Dedicate some time, while you’re still working, to take a Test Run At Retirement, like my wife and I did. Take some time to think about:

What will your life look like when work is no longer mandatory?
How will you spend your time?
What will give you Purpose?
Where will you live?

The research indicates that retirement planning “has potentially important consequences,” not just for financial security in retirement, but also ” in promoting satisfaction with, and adjustment to, the retirement lifestyle.”

It’s been proven by the research that planning for retirement while you’re still working is one of the best things you can do to ensure that you’ll have a great retirement. Make it a priority, it’s one of the keys to a great retirement.

3.) Develop Retirement Goals

Retirement is a luxury.

For the first time since you started school, you’re free to do whatever you want with your life. It’s also the first time that you’re 100% responsible for deciding how you’re going to spend your time.

Are you going to Die While You’re Living, Or Live While You’re Dead? Decide what retirement means to you, and develop some goals to help you prioritize the things which are most important to you. Focus on what matters to you, and create a plan to do the things you want to do, and avoid doing the things you don’t.

Create an action plan to move your retirement From Good To Great. Create your own 10 Commandments of Retirement, and outline what really matters for your life in retirement. Recognize that your role and identity will change from when you were a worker with employer-defined goals. You’re now Independent, and you should define your own identity, supported by your own goals. Continue Reading…

Mini Retirements: Why Waiting until 65 is a Mistake

Posted By Financial Independence Hub | June 19, 2026

Gemini-generated image courtesy AlainGuillot.com

by Alain Guillot

Special to Financial Independence Hub

Mini retirements challenge one of society’s most accepted ideas: work nonstop for 40 years, then finally start living at age 65.

But there’s one major flaw in that plan.

Your money may still be there at 65, but your body may not.

You probably won’t be surfing in Portugal, climbing mountains in Peru, scuba diving in the Caribbean, or salsa dancing until 2:00 a.m. in Iceland with the same energy and physical capacity you had in your 30s or 40s.

Life experiences have an expiration date.

That’s why more people are embracing the idea of mini retirements: taking intentional breaks throughout life to travel, recharge, learn, and experience the world while they are still physically capable of fully enjoying it.

What are Mini Retirements?

Mini retirements are extended breaks from work taken throughout your career instead of postponing all freedom until old age.

They can last:

Three months
Six months
One year
Even several years

Unlike traditional retirement, mini retirements are not about stopping work forever.

They are about redistributing leisure and adventure across your lifetime.

Instead of saving all your freedom for the end, you enjoy pieces of it along the way.

Why Mini Retirements make sense

Your Health Is Temporary

Money compounds over time.

But physical ability declines over time.

There are experiences that simply feel different when you are young enough to fully enjoy them.

Walking through the steep hills of Lisbon at age 35 is not the same experience at age 75.

Sleeping in hostels, hiking volcanoes, learning to scuba dive, backpacking through Southeast Asia, or dancing all night requires energy, mobility, and stamina.

Those things are not guaranteed forever.

The Compounding of Life

Financial advisors often talk about the compounding of money.

But there is another kind of compounding that matters just as much: the compounding of experiences.

In his book Die with Zero, Bill Perkins introduces the idea of “memory dividends.”

When you have an incredible experience while you are young, you continue receiving emotional returns from that memory for decades.

A six-month adventure at age 30 may give you:

Stories you tell forever
Friendships that last decades
Confidence and personal growth
Memories that enrich your entire life

That experience continues paying dividends emotionally long after it ends.

An incredible trip at age 65 may still be meaningful, but it produces fewer years of memory dividends.

A Career Break is not Career Suicide

For decades, workers feared gaps in their résumés.

Today, that mindset is changing.

Modern work is increasingly digital and sedentary. Millions of people now earn income from laptops, consulting, remote work, freelancing, or flexible schedules.

Many people in their 60s and 70s can continue working comfortably from home long after physically demanding jobs would have forced retirement in previous generations.

That changes the equation completely.

A mini retirement in your 30s or 40s is no longer necessarily a setback.

It can be:

A strategic reset
A mental health investment
A creative recharge
A period for reinvention
A chance to reconnect with life

Ironically, many people return from mini retirements more energized, focused, and productive than before.

Is it Okay to use Retirement Savings?

For many people, the answer is yes: within reason.

Of course, withdrawing money early means sacrificing some financial compounding.

But life is not only about maximizing spreadsheets.

Time is a non-renewable resource.

Money can be earned back. Continue Reading…

Myths about Dividend Stocks in RRSP vs TFSA: Busted

Posted By Pat McKeough | June 18, 2026

Dividend investors love rules of thumb. Rules are comforting, like a warm blanket. Unfortunately, some of the most popular rules around dividend stocks in RRSP vs TFSA are only partly true.

The cost is usually quiet. You rarely see a dramatic mistake on a single statement. Instead, you get small leaks that compound: a bit of withholding tax you cannot recover, a little extra taxable income later than you expected, and a placement decision that is hard to unwind without triggering tax.

Here is a myth-by-myth cleanup, with practical takeaways you can apply without needing a spreadsheet the size of Manitoba.

Myth #1: TFSA is Always Best for Dividends

Why it sticks: a TFSA is tax-free in Canada, so it sounds like the obvious place for any income.

The reality is more nuanced. A TFSA is often an excellent home for dividend income, but not every dividend behaves the same way once cross-border tax rules enter the room.

What’s true (and what’s not):

A TFSA is great for many dividend investors, especially when flexibility matters. The part that breaks is the word “always.”

The key exception: U.S. dividends in a TFSA

U.S. dividends paid into a TFSA commonly face 15% U.S. withholding tax, and the TFSA usually does not let you recover that amount. The Canada U.S. tax treaty generally treats RRSP and RRIF type plans differently than a TFSA for this purpose.

This is the classic U.S. dividend withholding tax TFSA vs RRSP issue. It is not theoretical. It shows up as less cash hitting your account.

When a TFSA is often best for dividends

A TFSA is often a strong home for:

Canadian dividend payers (TSX stocks and many Canadian-listed dividend ETFs), since there is no U.S. withholding problem on Canadian dividends
investors who value tax-free withdrawals and flexibility later
people who want retirement income planning that does not add to taxable income

Takeaway: A TFSA is fantastic, but it is not automatically best for every dividend source.

Myth #2: U.S. Withholding gets Refunded in a TFSA

Why it persists: investors remember that in a taxable account, foreign withholding can sometimes be offset with a foreign tax credit, so they assume the TFSA works the same way.

Reality: inside a TFSA, the U.S. withholding is generally not recoverable because you cannot claim the foreign tax credit there.

RRSP vs TFSA: the simple $100 dividend example

Using round numbers:

U.S. dividend in TFSA: $100 declared, $85 received (15% withheld, typically unrecoverable)
U.S. dividend in RRSP: $100 declared, $100 received (treaty relief commonly applies when held properly)

That 15% gap is not a one-time annoyance. If you reinvest and hold for years, it compounds.

Takeaway: if you hold U.S. dividend payers inside a TFSA, plan for some permanent leakage.

Myth #3: DRIPs are Taxed inside RRSP/TFSA

Why people think this: in non-registered accounts, reinvested dividends are still taxable each year, so it feels like reinvestment must create a tax event everywhere.

Reality: registered accounts are designed so you do not report income annually.

TFSA: investment income and growth in the account are tax-free
RRSP/RRIF: investment income is tax-deferred, and withdrawals are taxed as income later

So a DRIP inside an RRSP or TFSA does not trigger annual Canadian tax reporting.

One practical record-keeping note

In taxable accounts, adjusted cost base tracking matters, especially with DRIPs.
Inside RRSP and TFSA accounts, adjusted cost base tracking is generally not required for Canadian tax reporting because you are not reporting gains each year.

Takeaway: DRIP taxes are a taxable-account headache, not a registered-account one.

Myth #4: RRSP Withdrawals are “Lightly Taxed,” just like TFSA

Why it trips people up: the RRSP deduction at contribution time is memorable, so people assume the withdrawal has special treatment too.

Reality, stated plainly: RRSP withdrawals are taxed as ordinary income. They do not come out as dividends, and you do not get the dividend tax credit on the way out.

This matters for dividend-focused RRSP portfolios because the income can stack on top of CPP, OAS, and other retirement income sources.

Two income-planning issues that surprise dividend investors

RRIF minimum withdrawals can force taxable income once you convert, and the minimum usually rises with age.
Higher taxable income can increase OAS recovery tax risk. TFSA withdrawals do not add to taxable income, but RRSP and RRIF withdrawals do.

Bottom line for dividend investors: