With the new year kicking off, investing is top of mind for many of us, especially with all the new contribution room that many of us just received in our different registered accounts here in Canada (TFSA, RRSP, RESP, FHSA).

Now before we decide what to invest in with our contributions this year, I thought it would be wise to look into:

-What are some of the major and common mistakes that Canadian investors make when they do their own analysis on which investment to buy?

-When we are looking to compare two investments, whether it's a mutual fund, or an ETF, what is the process that we should follow to make sure that we are doing appropriate and thorough due diligence?

-Are we paying near the low-end vs the top-end of the spectrum when it comes to fees? What would be considered a "high" fee vs a "low" fee for the Canadian investor?

-Are there other charges or fees that we should be mindful of in addition to just looking at the MER for an ETF or mutual fund?

-How to properly compare investments that we are considering?

We go into all that and more in this episode. Enjoy!

Resources Mentioned:

ETF Comparison Tool

ETF Guide: What I Invest In and Why?

Disclaimer:

This podcast is sponsored by BMO Exchange Traded Funds. Build Wealth Canada is compensated under this arrangement by BMO ETFs.

This communication is intended for information purposes only. This update has been prepared by Build Wealth Canada and represents their assessment at the time of publication. The comments contained do not necessarily represent the views of BMO Global Asset Management (BMO GAM). The views expressed by the host and the interviewee are subject to change without notice as markets change over time. The information contained herein is not, and should not be construed as, investment advice to any party. Investments should be evaluated relative to the individual's investment objectives and professional advice should be obtained with respect to any circumstance.

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One of my favourite types of interviews is when I get to interview someone who has hit their financial independence or retirement number early, and then picking their brain on how they got there, what worked well for them, what didn't, what mistakes they could have avoided, and learning what makes them feel happy and fulfilled both before and after hitting financial independence.

Well this time, I got to do this with one of the most famous personal finance experts in Canada, David Chilton, who, as you may know, was also one of the dragons on Dragon's Den.

Dave's bestselling book, The Wealthy Barber, was actually the first personal finance book that I ever read. I read it decades ago in high school, and in a way, it actually started me down this path of early financial independence.

Dave has recently released a massive update to the book, so we cover what has changed in personal finance and investing in Canada over the years, and what Canadians need to know about now when it comes to personal finance and investing in Canada.

I'm incredibly grateful that Dave has chosen to spend so much of his time educating Canadians and trying to improve financial literacy here in Canada. You can definitely tell that he's not doing it for some massive financial gain, and is genuinely trying to help.

Let's get into the interview.

Today, we have a Canadian guest who has literally done over 400 interviews with different personal finance experts over the years, many of which were specifically for Canadians. Today, I pick his brain on the common conclusions, best practices, and recurring advice he's heard after interviewing so many personal finance experts.

My guest, Kyle Prevost, is also part of the FIRE (financial independence, retire early) movement and was able to hit his financial independence number at a very early age. I pick his brain on what safe withdrawal rate he has settled on and why, based on his extensive research, so that he doesn't run out of money in his early retirement and is able to live off his portfolio permanently.

I also ask him what has really moved the needle for him in terms of growing his net worth to reach financial independence so quickly, and what he does now to help ensure that he stays financially independent and doesn't have to go back to work, when we have the next major stock market crash.

Free tickets to the Canadian Financial Summit:

https://buildwealthcanada.ca/summit

The Summit is from October 22-25 this year so be sure to grab your free tickets at the link above. You can also see all the speakers and talks at that link too.

1. After interviewing well over 400 personal finance experts over the years, what are some of the most impactful lessons or recurring pieces of advice that you've heard?
   
   
2. A few years ago, you created a retirement course where I remember my favourite section being your findings on the safe withdrawal rate - in other words, how much can we all withdraw from our investment portfolio to be able to live off it long-term? What are your current thoughts on a safe withdrawal rate, based on the research that you've seen, and have your views changed over time?
   
   
3. I know living abroad and travelling is something that you and your wife have done a lot of. When it comes to saving money on travel, can you give us 3 to 5 pieces of advice that you found really moved the needle for you when it comes to either not overpaying, or where you were able to really maximize the value that you received per dollar spent?
   
   
4. Now that you've hit FI years ago, do you still find earning more money to be a motivating factor for you? The last time you were on the show, you mentioned that it was as it lets you experience more when it comes to travel (among other things). Now that you've been FI for even longer, and since the markets have done so well over that time, do you find accumulating more money is still the motivator it once was? Or do you now get motivation and fulfillment from other things?
   
   
5. If both you and your wife were to stop generating any additional income through part-time work or side projects, how would you approach your cash position and asset allocation? Follow up: Since you are still generating some income as a household post FI, how does that change how much you keep in cash and how you structure your asset allocation?
   
   
6. With the markets at all time highs again, there are definitely those that are getting nervous and worrying about a drop in the markets in the near future. What do you personally do to ensure you don't run out of money and are forced to return to 9-5 work if we were to have another 2008 scenario?
   
   
7. Over the decades, what factors have truly moved the needle for you in terms of net worth generation?
   
   
8. Tell us where we can hear more from you and about the Canadian Financial Summit.