Financial Independence – Are We There Yet?

The ultimate goal, here at Avrex Money, is to achieve Financial Independence.. This blog has been in existence for three years. During this time, I have written a whopping total of 22 posts. Wow! With that output rate, I can officially declare myself, the “Least Prolific Personal Finance Blogger in Canada.” 🙂 Why have I written so few posts? Well, mostly because I’m lazy. 😉 Another reason is that there are already so many superb personal finance blogs out there, sharing quality information, that I feel I would just be repeating the same information. The final reason is that, if you’re disciplined, the road to Financial Independence is actually fairly simple. What does it take to reach Financial Independence?

• LBYM Live Below Your Means. ie. Save more than you earn.
• Low fees Invest in a low-cost passive ETF index portfolio. This will shave years off of your working life.
• Patience The magic of compounding will get you there quicker than you think.

In other words…. it’s kinda boring. And that’s ok. There’s no need to be constantly checking your portfolio. Just keep saving and re-balancing your portfolio as required. This gives you more time to go outside and enjoy life. Has Avrex Money reached Financial Independence? Nope, not yet. But, I’m definitely on the last lap of this race. Before I declare my ‘Findependence Day’, there are issues that I need to explore further and refine. These include:

• Projected Retirement Expenses. How do I envision my lifestyle when I’m not working? How much will this cost? Do I have enough money now?
• Probability of Success. Since I will be drawing down my portfolio until death, I need to determine what probability of success is an acceptable risk, and how much money that will require. I will also need to determine how to mitigate the chance of failure (i.e. going broke).
• Asset Allocation. What will my Asset Allocation look like? How will I structure my assets across my registered versus non-registered accounts to minimize taxes and maximize retirement income?
• Health. Quality of Life is another important factor in trying to determine if it’s finally time to leave your full-time gig.

The reason for this post, is that I’d like declare that…

“I will be writing here more often to explore these pre-retirement issues.”

I hope you join me, as I document my thoughts and steps, as I head towards the finish line. Thank you, Avrex