Here we are again with our next installment of the FIRE Community Guest Interview Series!<\/span><\/p>\n For anyone new here, this interview series will cover people within the FIRE community who are on their way to becoming financially independent, have already reached financial independence, or who have retired early. If you are reading this and you are financially independent, retired early, or close to reaching these major financial milestones,\u00a0<\/span>please reach out to the Modern Fimily!<\/span><\/a>\u00a0You can\u00a0<\/span>check out the previous FIRE Community Guest Interviews here<\/span><\/a>.<\/span><\/p>\n Today, we have the pleasure of having Mark Seed from My Own Advisor<\/a> to join us for the interview series. Mark has been blogging about personal finance for 10+ years and has a wealth of knowledge on his site.\u00a0 I particularly enjoy his weekend reading posts where he curates posts each week from others in the Canadian personal finance space into a concise location to see what others are writing about. Similar to Bob over at Tawcan, Mark is a hybrid dividend + ETF investor. He has a goal of having a 1 million dollar investment portfolio between him & his wife and to transition to semi-retirement in the near future.\u00a0 Mark and his wife are in amazing shape considering the value of their condo and the low mortgage balance remaining, the values of both of their pensions, their dividend income, and their indexed ETFs.\u00a0 They have done amazingly well over the years and it’s so great to have role models like Mark in the personal finance space.<\/span><\/p>\n I hope you appreciate these responses as much as I do and hope you can relate to these guest interviews in some sense to see that there is no cookie-cutter way to FI. If you have any follow up questions or would like to get in touch with Mark, please<\/span> leave a comment down below or reach out to him via his contact page<\/a> on his site. Without further ado, take it away Mark!<\/span><\/p>\n 1. Can you give us a little background of who you are, what you do, and how you became interested in personal finance? How did you discover the idea of financial independence?<\/strong><\/p>\n Sure Court! Thanks for having me on the site!<\/p>\n I\u2019ve been a DIY (Do-It-Yourself) investor for well over a decade now. I guess I finally had the \u201ca-ha\u201d moment about the improved benefits of low-cost investing in my early-30s (just over 10 years ago) although I was always an investor long before that. The Great Recession crystalized for me that nobody was going to care more about my money or my financial well-being than me (except maybe my wife)!<\/p>\n Kidding aside, I am very fortunate my wife and I are very aligned on many financial values. We both work for a national not-for-profit organization we enjoy, and have done so for about 20 years now. But, we certainly don\u2019t spend every penny we make. Far from it. Good paying jobs have allowed us over the years to travel and enjoy some great experiences, some of the finer things in life if you will. However, paying ourselves first, has always been key. Then we spend the money that is leftover. This approach has allowed us to build a healthy nest egg to consider semi-retirement in the coming years.<\/p>\n Long before any FIRE movement (Financial Independence, Retire Early), I knew it was important to save for my financial future while enjoying what life has to offer today. I guess that just always made sense to me. So, I\u2019ve lived my life accordingly.<\/p>\n 2. When in your journey did you realize financial independence was actually possible?\u00a0 Was that the original goal at the beginning?<\/strong><\/p>\n Probably about five years ago, around 2015-2016.<\/p>\n Like I mentioned above, I’ve been saving and investing for quite some time now and it\u2019s been a rewarding journey as a DIY investor overall. Sure, I\u2019ve made some mistakes. I owned pricey mutual funds for too long. I bought penny stocks coming out of university after my first degree. I bought new cars (a quickly depreciating asset) with borrowed money – not very smart at all!<\/p>\n But, I\u2019ve learned from those mistakes. I reflected on my thinking at the time and I think those lessons learned have helped me significantly, financially, to move forward.<\/p>\n After running various calculations a few years ago and getting more interested in the \u201cdo we have enough numbers\u201d, I realized our path was not only sufficient but potentially ample.<\/p>\n I had always envisioned a million dollar portfolio was going to be \u201cenough\u201d for semi-retirement many years ago, beyond any workplace pensions, beyond owning our home (as additional equity), and beyond any future government pensions such as Canada Pension Plan (CPP) and Old Age Security (OAS).<\/p>\n When I started to run the numbers years ago, I was right.<\/p>\n We have been fortunate to surpass those portfolio dreams but we still enjoy working, keeping our minds busy. So, even though one of our major financial goals has long since been achieved we\u2019ll continue to work for the coming years until some debt is paid off.<\/p>\n I have some personal principles around what is better, paying down your mortgage or investing<\/a>, but I can appreciate debt is a very emotional subject. Money is more than math.<\/p>\n Once our debt is done, in another couple of years, we\u2019ll have financial flexibility which is essentially the financial independence we\u2019ve been working for all along.<\/p>\n 3. To help put things into context, if you are comfortable sharing some numbers, what is your savings rate, FIRE number, net worth, salary, how many hours a week do you work, etc?\u00a0 How long have you been working towards financial independence and where are you today?\u00a0<\/strong><\/p>\n I share lots of personal details on my site<\/a>\u00a0but I don\u2019t disclose everything for privacy reasons. Unfortunately and sadly, there are too many people who want to take advantage of others.<\/p>\n While our \u201cFIRE\u201d number has since been surpassed, I can say that it\u2019s been a long-term goal to derive $30,000 per year in dividend and distribution income from our portfolio, in both a tax-efficient account and our tax-free accounts to support financial independence.<\/p>\n I write about that particular dividend income journey every month actually, mainly to prove to myself and others, there is a magical benefit to staying invested and sticking with a long-term financial plan thanks to the power of compounding.<\/p>\n At the time of this update (April 2021) we are about 72% there towards that goal. I figure another few years of investing inside our tax free savings accounts (TFSAs) will put us over the top.<\/p>\n That income, without touching our portfolio capital at all should we choose, should be able to cover almost every day-to-day living expense for as long as we live. For example, that income will cover our condo fees, property taxes, all utility bills, groceries, insurance needs and then some. Any part-time work or portfolio drawdowns from other accounts will cover the rest.<\/p>\n We\u2019ll still have our workplace pensions and government benefits to draw on as well, but those days are potentially decades away.<\/p>\n 4. Do you feel deprived?\u00a0 Do you feel like you are sacrificing and missing out on life?\u00a0 How would you say your mindset has shifted throughout your FI journey?<\/strong><\/p>\n Deprived? No. I am\/we are very blessed and fortunate. I don\u2019t believe I have missed out on anything to date and don\u2019t intend to going-forward. We have our health, that is the ultimate form of wealth. I want to inform your readers that all the money in the world is useless if you aren\u2019t healthy enough to enjoy it nor can you \u201cgive back\u201d at some point.<\/p>\n Anyone in a great financial position should strongly consider donations or other means, including their time, to help those that are less fortunate. We try and do our part on that and we hope to do more of it in the future\u2026<\/p>\n That said, I wouldn\u2019t say any of my mindset has shifted much throughout my FI journey, other than, I know we are now thinking about more capital preservation approaches; risk mitigation approaches instead of just focusing on financial growth.<\/p>\n I suspect I\u2019ll be writing much more on my blog about how I intend to transition from full-time work to semi-retirement or Financial Independence, Work On Own Terms<\/a> (#FIWOOT) in the coming years since that\u2019s where my focus and mindset will be.<\/p>\n 5. What do you spend your money on and what don’t you spend your money on? What brings you happiness and joy? How much money do these things cost?<\/strong><\/p>\n Gosh, where do we begin?<\/p>\n We like\/love travel, including international destinations, but that\u2019s not going to happen again anytime soon. So, we\u2019ll just be patient. We love Belize in particular and hope to go back multiple times for a few weeks on end over the upcoming years. Travel is usually a major expense for us – but worth it. Like I alluded to above, life is for the living including spending money on things you value.<\/p>\n We also enjoy great food – nice dinners out. We used to dine out for a nice meal or good patio for a couple of hours about once per month with little regard for the expense. Now, in the pandemic, we\u2019re just ordering in now and again.<\/p>\n Those things bring us joy and happiness – simple treats really.<\/p>\n I also personally enjoy a fine craft beer now and then so those cost a bit more than some cheap(er) beers on the market!\u00a0 I enjoy playing golf in the summer and attending hockey games in the winter when we\u2019re not in a pandemic.<\/p>\n Things we really enjoy that cost very little money are hiking and walking. We try and do that together a few times per week. I have a daily goal to get in about 10,000 steps. So far, so good on average this year!<\/p>\n I also have a bike and it\u2019s not uncommon for me to be riding for a hour or so on the weekends in the spring, summer and fall.<\/p>\n 6. Do you use a budget?\u00a0 Do you track your expenses? Do you track your net worth? If so, how often do you update these?<\/strong><\/p>\n Yes, we budget a bit but I far prefer using cashflow projections. Projections monitored weekly about how much money is coming in, how much money is flowing out, where is it going, when; since I find it more intuitive. Traditional budgets are just far too rigid. Life is dynamic and your cashflow management should be the same too.<\/p>\n I do track my net worth but very loosely and I don\u2019t follow it often. I wrote a post a while back that essentially mentioned while some net worth tracking is valuable, I wouldn\u2019t obsess over it<\/a>.<\/p>\n The reality is, if you\u2019re paying yourself first, managing your debt obligations, which is ultimately part of managing your cashflow, then net worth growth will take care of itself.<\/p>\n 7. As a FI member living in Canada, are there any pros to living in Canada specifically that have helped you along your journey?\u00a0 Conversely, any cons?\u00a0\u00a0<\/strong><\/p>\n Interesting question!<\/p>\n I would suggest a potential pro to living in Canada is, financially, I think Canadians as a whole may be a bit conservative when it comes to money management. Meaning, we are generally risk averse. Or maybe that\u2019s just me! So, maybe we are wired to be net savers overall. Certainly the pandemic has probably caused lots of folks to re-evaluate their personal finance habits.<\/p>\n On a more community note, I think we have a great, passionate network of bloggers, podcasters and writers who enjoy sharing their financial journeys beyond mainstream media content. That diversity, and growing diversity in this community from that perspective, is an enabler to financial literacy.<\/p>\n Cons? Humm. There are definitely people (including financial advisors and wealth management folks) who don\u2019t like nor care for any dividend paying stocks – that\u2019s for sure! They are on record to say dividends and dividend paying stocks that pay dividends really \u201cdon\u2019t matter\u201d. I know what they are saying to a degree but that\u2019s not a healthy dialogue. More about that for another day!<\/p>\n I\u2019m much more of the mindset that however you invest, know the risks and benefits as it relates to your plan. At the end of the day, as long as you are meeting your financial goals that\u2019s really all that matters.<\/p>\n 8. As a seasoned vet in the personal finance blogging space, can you retire tomorrow and live off your blogging income?\u00a0\u00a0<\/strong><\/p>\n Seasoned vet, does that mean I am old, experienced or other? Ha.<\/p>\n I\u2019ve had my blog for over 10 years now so I thank you for your compliment \ud83d\ude42<\/p>\n Could I retire tomorrow and live off my blog income alone? Heck no. I barely make minimum wage from this site if that!<\/p>\n I run my blog, because I enjoy it. Sure, I like to be compensated for the hours I put into it and I do get some very small income from the site but it\u2019s far from any get rich scheme or other major money making endeavour.<\/p>\n I\u2019ll put it to you this way, if time is money then I know I could do other things with the same amount of time that would deliver far more money. But life just isn\u2019t about how much you make – hardly.<\/p>\n 9. What is your investment strategy? Do you invest in mutual funds, index funds, dividend growth stocks, real estate, other businesses, etc.?\u00a0 Has your investment strategy changed over the years?\u00a0\u00a0<\/strong><\/p>\n I think I touched on this above a bit but I would classify myself as a \u201chybrid investor\u201d and have invested this way for many years. I\u2019ve noticed other bloggers in Canada and the U.S. have picked up on my moniker as well.<\/p>\n Since I really became a full-on DIY investor, with no external support really, and started this blog to chronicle my financial journey, thoughts, and mistakes, I\u2019ve owned many Canadian and U.S. stocks but I\u2019ve also owned some low-cost, diversified Exchange Traded Funds (ETFs) for diversification. I continue to hold many of those stocks and funds for years now.<\/p>\n So, this blend of stock investing and ETF investing makes me what I consider a hybrid investor. I liken this approach to owning some \u201cexplore and core\u201d investments, or vice-versa.<\/p>\n I used to invest in various mutual funds but that seems like forever ago. Same with bonds as an asset class. I ditched them many years ago.<\/p>\n I haven\u2019t really changed my investment philosophy very much with time, but I have started to own more units of various low-cost, diversified ETFs in recent years – especially those that cover the U.S. market or capture international markets. I\u2019ve been deficient in what I would call ex-Canada diversification for a number of years so I\u2019ve tried to make some changes for the better in that area.<\/p>\n I certainly don\u2019t know if I would change anything, looking back, because my mistakes and successes have both been important to realizing some financial goals. I would however advise anyone following my site, to consider more ETFs first, and then if you wish to dabble with some \u201cexplore\u201d then that\u2019s OK too. Just make that decision an informed one.<\/p>\n Certainly with a few products on the market today, it\u2019s never been easier to be a DIY investor and capture market-like returns with very minimal effort. Here are a few posts I’ve written on this topic:<\/p>\n 10. Do you take advantage of tax advantaged accounts offered to you?\u00a0 If so, which ones and how so?\u00a0 Do you have a game plan to be able to withdraw from these funds when the time comes?\u00a0<\/strong><\/p>\n I do!<\/p>\n I\u2019ve had a taxable investment account for well over a decade now. I started that account because before the Tax Free Savings Account (TFSA) came into effect, while I was maxing out contributions to my Registered Retirement Savings Plan (RRSP), it was the only other reasonable way to invest in the stock market.<\/p>\n I tend to invest inside this taxable account using Canadian dividend paying stocks. Those stocks receive favourable tax treatment from our government<\/a> – so a taxable account is a great home for those.<\/p>\n I\u2019ll probably always keep these assets inside this account, at least for the foreseeable years.<\/p>\n When the TFSA came into effect, I immediately considered that a Tax Free Retirement Account (TFRA) instead of a \u201csavings\u201d account. I don\u2019t like the \u2018savings\u201d in the account name. I suspect some financial institutions had some influence on the name though!<\/p>\n In any event, I strive to max out contributions to that TFSA every year, as does my wife with her TFSA. We figure tax-free dividends and growth can be a great gift that keeps on giving!<\/p>\n I\u2019ve already mentioned I have an RRSP account (so does my wife), and I also have a small LIRA (Locked-In Retirement Account) based on former employment.<\/p>\n I haven\u2019t fully solidified any retirement drawdown plan yet but the following approach seems to make general sense to me\/for us:<\/p>\n Your readership might want to check out this very comprehensive post about account beneficiaries<\/a> – don\u2019t forget to read any fine print when it comes to your investment accounts!<\/p>\n 11. Speaking of withdrawals, what is the withdrawal rate you plan to use when you withdraw from your portfolio?\u00a0 Are you a fan of the 4% \u201crule\u201d or something else?\u00a0 Why?<\/strong><\/p>\n I actually believe the \u201c4% rule\u201d is a decent starting point when thinking about withdrawal rates,\u00a0 but that doesn\u2019t mean it must nor should apply to everyone<\/a>.<\/p>\n The thing folks have to remember about that rule or study is the margin of safety embedded – meaning over multiple investing periods when the study was conducted to derive the 4% rule – using a 50\/50 mix of stocks and bonds no less – the 4% rate was plenty safe<\/em><\/strong> over a 30-year period. Meaning, there is very little risk you would outlive your portfolio.<\/p>\n So, think about that for a bit. 4% is probably the lowest rate you want to withdraw from your portfolio over any 30-year period. That means you can spend more!<\/p>\n Because of the flaws of the 4% rule, I personally like some form of variable percentage withdrawal (VPW)<\/a>. This withdrawal approach is essentially this:<\/p>\n This VPW approach works because spending in life is never a straight line, so why would you spend from your retirement portfolio like that?<\/p>\n 12. As a Canadian pursuing FI, what are your post-FIRE thoughts\/plans regarding health coverage?\u00a0 As a reference, what do you currently pay annually or monthly for health related costs (be it insurance, co-pays, deductibles, etc.)? What do you estimate your post-FIRE health costs to be per year?\u00a0<\/strong><\/p>\n That\u2019s a great question since healthcare is always a wildcard in our lives\u2026<\/p>\n I will probably adopt some sort of group life insurance plan to pay for some healthcare costs in retirement.<\/p>\n I am fortunate at my work that there are options for me\/us to be eligible for healthcare spending account benefits at the time of retirement. It\u2019s not much, but something is better than nothing!<\/p>\n I will probably also pursue a supplemental health plan, to cover health and\/or dental coverage – coverage that could be assumed within 90 days of my employment.<\/p>\n I figure our healthcare costs might be in the name of a few hundred bucks per month, on average, including premiums in early or semi-retirement and we\u2019ve budgeted for that as fixed expenses in our cashflow management plan already.<\/p>\n We currently pay less than that via our employer benefits and for life insurance.<\/p>\n On that latter note, once all debt is gone, we\u2019ll just have a small life insurance policy benefit amount in place. I figure with no liabilities there is little reason to have major life insurance premiums.<\/p>\n 13. If you could go back in time and change things, what would you have done differently?<\/strong><\/p>\n Sounds blunt maybe, but nothing. My journey including my financial journey has made me who I am today. My life would be different without those choices from the past. There is also no reason to dwell on the past since I can\u2019t control that. What\u2019s done is done as they say!<\/p>\n My hope is I continue to focus on what I can control, my present, and apply any learnings to the future to continue to grow. I hope to pay it forward (to others) as best I can.<\/p>\n 14. Has discovering financial independence changed how you view your job and life overall?\u00a0<\/strong><\/p>\n Maybe a bit. I guess I feel more empowered and confident with time. I still want to do great work, support others, because I feel ultimately collaboration and teamwork are essential for success.<\/p>\n I guess I\u2019ve always been on a path of financial independence, I didn\u2019t really discover \u201cit\u201d per se like some folks feel they have discovered FIRE or minimalism or other life mantras. I guess I\u2019ve always felt that living below my means, saving some money, having some fun, and helping others at work or in my community are always just good and important things to do. It\u2019s intuitive.<\/p>\n 15. Have you come out of the FIRE closet yet? Meaning, do your friends, family, co-workers etc. know about your financial independence goals?\u00a0 If so, how did you bring it up and what were their reactions?\u00a0 If not, why not?\u00a0 Why do you struggle with this conversation and why do you feel that money is such a taboo topic?\u00a0\u00a0<\/strong><\/p>\n Ha, funny how you frame that.<\/p>\n Well, I remain somewhat private about our finances because unfortunately there are some bad and nefarious people out there – and social media and other platforms are contributing to that vulnerability.<\/p>\n But, I do share many personal details on my site because my blog is about my journey, my ups and downs, successes and failures and things I need to figure out financially. I figure some transparency is absolutely essential since if I\u2019m grappling with some issues, I bet others are as well.<\/p>\n Some of my family members know about my blog, although I didn\u2019t shout that from any mountain. They kinda figured it out on their own. I think some members of my extended family have no idea I have the site let alone my journey.<\/p>\n Some co-workers are aware of my site, and that\u2019s fine. They have acknowledged they enjoy the readings but it does give me some pause that co-workers know about my plans, my financial affairs, and they may question them and scrutinize them. I don\u2019t mind answering some questions from colleagues now and then, but I am sensitive to the fact that I talk about semi-retirement more lately (because that\u2019s our plan) and that path might conflict with any long-term employment plans. It is my hope my organization can see the value I still want to bring to it in the coming years, even in a part-time capacity. I think that would be great and a win-win situation but we\u2019ll see.<\/p>\n Unfortunately money remains a very taboo subject, like other topics, because it\u2019s very emotional for most of us. Like it or not, we are judged by others how we spend our time and our money.<\/p>\n Until we get over ourselves that money is just a tool to help us through life, and that there is no one \u201cright way\u201d only a \u201cright way for you and your family\u201d then I think we\u2019ll continue to struggle as a society talking about this stuff.<\/p>\n I definitely have my own opinions about what\u2019s worked, what currently works, and what doesn\u2019t for me, but that definitely doesn\u2019t mean you have to follow the same path. I\u2019ve always said on my site personal finance is personal<\/em><\/strong>. I truly believe that even if some common principles may apply to many of us.<\/p>\n 16. What pieces of advice would you suggest to someone who is just starting out or someone who is working toward reaching financial independence?\u00a0<\/strong><\/p>\n I would consider your \u201cwhys\u201d. For example, consider asking yourself these questions and writing down some answers:<\/p>\n There is tremendous power in some of these questions and taking the time to reflect.<\/p>\n I would also consider anyone just starting out on their journey to strive to be goal oriented. Write down some goals, keep them visible, monitor them and mostly importantly report on them\/tell others about them. The latter will help you become more accountable – that\u2019s critical in any goal-setting approach.<\/p>\n Lastly, on those reflective questions above, ensure you consider writing down your plan before investing in products. So, plans before products. I see too many people chasing investments without knowing what they are investing in or for.<\/p>\n I have another comprehensive post on my site about What is a Financial Plan <\/em><\/a>that I think would help a lot of people. Check it out!<\/p>\n 17. What does the word \u2018success\u2019 mean to you?<\/strong><\/p>\n I would say in one content, it\u2019s about making the most of your abilities or talents.<\/p>\n In another context, a broader context, it\u2019s about health, family, friends and a life filled with happiness and abundance. If you wake up feeling grateful, fortunate, happy and blessed, that seems very successful to me.<\/p>\n 18. Are there any books, blogs, or podcasts that you would recommend for our readers to check out?<\/strong><\/p>\n Lots!<\/p>\n It\u2019s really hard to list just a few depending upon what folks want to read about – personal finance or otherwise.<\/p>\n I would say of late I really enjoy a blog and podcast from a creator here in Ottawa: Farnam Street<\/a>.<\/p>\n I\u2019ll let you explore the site and see if that\u2019s something you\u2019d enjoy too. I think it\u2019s outstanding.<\/p>\n 19. How can people get in contact with you?\u00a0<\/strong><\/p>\n Folks can reach me at My Own Advisor<\/a>,<\/em> my blog, where new content is published regularly. All content and newsletters are free. I really enjoy reading about other journeys, comments about my posts, and more on the site.<\/p>\n I\u2019m also on Twitter @myownadvisor<\/a> since it\u2019s my go-to social platform.<\/p>\n So many details, love it Mark! Here are some of our key take-aways from this interview:<\/p>\n Thanks again Mark for being a part of our FIRE Community Guest Interview Series – even though you’re more team FIWOOT vs FIRE ;).\u00a0 In next month\u2019s interview, we have a fellow multi national with ties to both France and the US on to showcase her FIRE journey.<\/span><\/p>\n Did you enjoy this interview? Any additional questions for Mark? Thanks for tuning in and check back next month for the next interview.<\/span><\/p>\n We love highlighting other members of the FI community. Please\u00a0<\/span>contact us<\/span><\/a>\u00a0if you\u2019d like to be a part of the FIRE Community Guest Interview series and we\u2019ll see if we\u2019re a good fit!<\/span><\/p>\n And in case you wanted to read the previous interviews that make up our FIRE Community Guest Interview Series, here you go!<\/span><\/p>\n Here we are again with our next installment of the FIRE Community Guest Interview Series! For anyone new here, this interview series will cover people …<\/p>\n
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