Mike, Author at MOOSE MARKETS

From DIY Investor to Confident Retiree: 5 Questions That Define the Transition

Retirement used to be seen as a finish line. Today, it’s more of a turning point—a new phase of life filled with possibility. But behind the dream of travel, time freedom, and meaningful pursuits is a single, recurring concern: Do I have enough to enjoy the life I want?

That question isn’t just about the size of your savings. It’s about making smart, confident decisions in a world of ever-changing markets, tax rules, and personal goals.

The good news? You can simplify the complexity by focusing on five essential questions. These aren’t financial formulas—they’re strategic filters to guide your thinking, reduce overwhelm, and help you take action.

1. Do You Have Enough?

Let’s start with the big one: do you have enough to retire comfortably and stay retired?

This isn’t just about hitting a magic number. It’s about aligning your income sources (pensions, savings, investments) with your expected lifestyle over the next 25–30 years. That means accounting for inflation, healthcare, market variability, and life’s unpredictable moments.

Rather than relying on outdated rules of thumb or flat withdrawal rates, modern retirement planning uses dynamic projections that adapt to your spending, not the other way around. These models show whether your plan holds up—and help you course-correct early if needed.

You may also want to identify your main retirement goals:

Retire Early
Spend the Maximum (Die with Zero)
Maximize your Estate

💡 Tip: Run multiple projections with different assumptions (e.g., conservative vs. optimistic returns) to see your “range of outcomes.”

Retirement Loop Projections Sheet Example.

2. Are You Paying Too Much in Fees?

Investment fees may not seem like much year to year, but they quietly erode your wealth over time.

A portfolio with 1.5% annual fees may lose tens of thousands in potential returns over a 20+ year retirement. That’s money that could have paid for vacations, healthcare, or boosted peace of mind.

One of the most effective ways to reduce fees is to switch to low-cost, globally diversified ETFs—particularly all-in-one solutions like XEQT or ZEQT. These can simplify portfolio management and save you thousands in fees while maintaining proper asset allocation.

💡 Tip: Check the MER (Management Expense Ratio) on every fund you own. Anything over 0.50% deserves a second look.

Management expense ratio (MER) chart example.

3. Are You Paying More Taxes Than Necessary?

Taxes don’t retire when you do. In fact, they often become more complex.

Drawing from your RRSP, TFSA, and non-registered accounts in the wrong sequence can push you into higher tax brackets—even if your spending hasn’t changed. Many retirees overpay simply because their withdrawal strategy wasn’t optimized.

The key is to aim for a stable average tax rate across your retirement years—not just minimizing tax today. That might mean withdrawing from RRSPs earlier than you expected, or deferring CPP/OAS in favor of drawing on taxable investments.

💡 Tip: Work on various scenarios. Keep the average tax rate as steady as possible.

4. Can You Spend More Without Worry?

This question surprises many retirees—but it’s one of the most important.

After years of diligent saving, many people struggle to enjoy their money. They worry about spending too much too soon, or about the next market downturn. Ironically, this cautious mindset can prevent you from living the retirement you worked so hard for.

One solution is an agile spending plan—a flexible model that adapts to your portfolio’s performance. If markets do well, you increase spending. If they don’t, you temporarily tighten the belt. It’s not about deprivation—it’s about confidence and control.

💡 Tip: Run your projections each year as if it were your first retirement day.

5. What If the Market Crashes?

Remember 2008? I do…

One of the most effective ways to manage a market crash is to use a cash reserve—a buffer of liquid, low-risk funds outside the market. A cash reserve is money you set aside in a high-interest savings account, money market fund, or short-term GICs—not in the market.

During a bear market, you can draw from your cash reserve, giving your investments time to recover.

💡 Tip: Stress-test your portfolio. I have given an example here.

I have covered more about the cash wedge in the article below.

How to Build a Retirement Income Plan That Actually Works

Putting It All Together

Retirement confidence doesn’t come from beating the market. It comes from clarity. When you can answer these five questions with conviction, you free yourself to focus on what matters most: living well.

You know where your money is going.
You know how to reduce the silent threats (fees, taxes, inflation).
You know how to adapt your plan without panic.
And perhaps most importantly, you know you’ve done the work.

There’s no one-size-fits-all retirement plan—but there is a framework that makes it easier to build one that fits you.

Bonus Resource: Want to Go Deeper?

We recently shared a full breakdown of this framework in our retirement planning webinar. If you’d like to see real-world examples and visuals that bring these concepts to life, you can watch the replay here:

Ready to Take the Next Step?

If reading this sparked other questions—you’re not alone. Many DIY investors feel unsure during the transition into retirement.

In fact, if you’ve ever thought:

“I’m not sure how much I can safely spend…”

“I keep second-guessing my withdrawal plan…”

“What happens to my portfolio if the market drops again?”

“How will CPP, OAS, and taxes really affect my income?”

…then it’s time to get support.

That’s why I created Retirement Loop: a community for Canadians who want to retire with clarity—not questions.

Inside Retirement Loop, you’ll get:

Retirement Loop logo.

✅ A downloadable projection spreadsheet (you own the data)
✅ Personalized support from our retirement coaches
✅ A private community of 500+ Canadians navigating retirement together
✅ Step-by-step learning modules and monthly live events
✅ Tools to optimize your plan for income, taxes, fees, and peace of mind

It’s everything you need to stop second-guessing your plan and start feeling in control.

📌 Membership is now open—but only for a limited time.
Doors close soon, so we can focus on helping current members build their retirement path.

👉 Click here to join Retirement Loop and get instant access to everything.

How to Build a Retirement Income Plan That Actually Works

You did it—you’re officially retired!

Your bucket list is ready, your calendar is wide open, and your dreams are finally within reach. You’ve saved and planned like a pro. Now it’s time to enjoy what you’ve built.

But then… the real questions start to pop up.

Where do I withdraw money from first?
What if there’s a market crash?
How do I manage taxes across my accounts?
How do I make my investments last?

This is when your retirement income plan becomes just as important as your retirement savings plan.

Let’s set the basics for building a simple, flexible income plan—including how to protect your portfolio from market downturns and withdrawal mistakes. Plus, we’ll walk through the concept of a cash reserve and why it could be your most underrated retirement tool.

Why You Need an Income Plan

Knowing you have “enough to retire” is only half the equation. The other half is understanding how to turn that nest egg into a paycheck.

One of the biggest risks retirees face is the withdrawal sequence risk—the possibility of selling investments at a loss during a market downturn. If the first few years of retirement coincide with a bear market, this can significantly reduce the long-term sustainability of their portfolio.

Withdrawal Sequence in Three Scenarios to illustrate risk. — Withdrawal Sequence in Three Scenarios to Illustrate Risk.

It’s why even well-prepared retirees feel overwhelmed when they look at 10+ accounts and multiple income sources.

Imagine this: you retire at the top of a bull market, start drawing income, and the market drops 20% in your first year. Now you’re forced to sell lower-priced shares to meet your income needs—locking in losses early and potentially throwing your entire plan off course.

Retirees with dividend-only or high-yield portfolios hope to avoid selling shares. But we know high yield often comes with higher risks, so this isn’t always a better strategy.

So what’s the solution?

The Cash Reserve Strategy: Your Retirement Shock Absorber

One of the most effective ways to manage withdrawal risk is using a cash reserve—a buffer of liquid, low-risk funds outside the market.

What is it?

A cash reserve is money you set aside in a high-interest savings account, money market fund, or short-term GICs—not in the market.

Why use it?

If your portfolio doesn’t generate enough dividends to cover your retirement spending needs, the difference (the “gap”) typically comes from selling shares. But during a bear market, you can instead draw from your cash reserve—giving your investments time to recover.

Example:

Retirement income needed: $50,000/year
Dividends generated: $20,000/year
Gap to cover: $30,000/year

If markets are down, you draw that $30,000 from the reserve instead of selling at a loss.

How Much Cash Reserve is Enough?

There’s no one-size-fits-all answer. It depends on two key factors:

How big your income gap is
How much volatility you’re comfortable with

As a general rule:

1–2 years’ worth of gap = moderate protection
3+ years’ worth = maximum protection (especially for conservative investors)

Keep in mind: while a large reserve offers security, it also limits your exposure to long-term market growth.

6 Retirement Upgrades—Save Your Spot to My Next Webinar!

Planning for retirement is both complex and essential for enjoying this phase of life. Understanding strategies, tax optimization, and withdrawal methods can feel overwhelming.

But how do you know if you’re making the right decisions?
You weren’t trained as a financial planner. Yet when seeking professional help, many advisors focus more on selling investments than addressing your concerns.

It’s time to put you in control of your retirement plan.

As a financial planner for 10 years before leaving the corporate world, I’ve helped many people like you, and I took great pride in answering their retirement questions.

On May 22nd at 1 pm ET, I’ll host a free webinar addressing six crucial retirement questions:

Retirement Loop webinar visual. — Retirement Loop free webinar visual.

Do I have enough to retire?
How to pay less fees?
How to pay less taxes?
How to spend more, and still have enough?
What if the market crashes?
How do I know I’m doing the right thing?

I’ll provide 6 retirement upgrades that will transform how you approach these challenges.

👉 Reserve your free spot here »

A Simple Framework to Build Your Income Plan

There are many variations, but the foundational steps are consistent:

Run Your Retirement Projections: Estimate your needs, withdrawal rates, and growth assumptions to see if you’re on track.
Identify All Sources of Income: Include CPP, OAS, pensions, dividends, and any part-time work or rental income.
Calculate the Gap: Subtract total income from your spending needs. That’s the gap you must fill each year.
Build the Cash Reserve: Set aside 1–3 years of your gap in liquid, low-risk assets.
Invest the Rest: Focus on dividend growth equities to protect against inflation and grow your income. Add fixed income if volatility keeps you up at night.

Keep it Simple (and Flexible)

Managing multiple accounts doesn’t have to be complicated. Whether you use managed solutions or self-directed portfolios, a clear set of 3–4 rules can guide when and what to sell.

For example:

Only sell from accounts with the lowest tax impact
Prioritize capital gains over income in non-registered accounts
Rebalance once per year to refill your reserve and stay diversified

And remember: selling isn’t a mistake—it’s part of the plan.

Revisit Your Plan Every Year

Markets change. Life changes. So should your income plan.

Rerun your retirement projections each year and adjust your withdrawal strategy accordingly. The goal is to spend more time enjoying retirement rather than constantly recalculating it.

Let’s Talk Retirement—Live!

You’ve worked hard to get to retirement. Don’t let uncertainty about withdrawals derail the freedom you’ve earned.

By building a thoughtful income plan—with a cash reserve as your buffer—you’ll give your retirement more flexibility, stability, and peace of mind.

I’m hosting a free webinar in which we’ll explore real-life retirement income strategies, including how to handle taxes, cash reserves, and withdrawal timing.

Here are the details:

The webinar is on Thursday, May 22nd at 1 pm ET.
The content is 100% Canadian.
If you can’t attend, register and you will receive the replay for free.
It is 100% free, no strings attached.
The presentation is about 50 minutes.
I will stay one hour after the presentation to answer all your questions.
I will also provide handouts and other resources to all live attendees.
Live places are limited to the first 500.

Join the session here → Save my seat

The 4 Budgets of Retirement: How to Spend Confidently at Every Stage

Most Canadians understand the importance of having a budget while saving for retirement—but few realize just how critical budgeting becomes after you retire.

While your working years are about maximizing savings and staying invested, retirement introduces a new challenge: spending wisely without outliving your money.

One of the most common questions from retirees is:
“How do I protect my portfolio against a market correction?”

While you can’t control the markets, you can control how much you withdraw and when. And that starts with a retirement budget tailored to each phase of your journey.

The Four Phases of Retirement

Just like your working life has seasons, so does your retirement. These four stages—Before You Go, Go-Go, Slow-Go, and No-Go—help define your spending needs and investment strategy over time.

Planning with these stages in mind enables you to build an agile retirement budget that grows, flexes, and contracts as needed—while keeping your long-term financial health intact.

1. Before you Go: The Accumulation Years

This is the “pre-retirement” phase, which often lasts longer than retirement itself. It’s the period when you’re actively saving, investing, and preparing for what lies ahead.

The most important principle here?
Pay yourself first. Systematic investing—through your RRSP, TFSA, or pension—is the cornerstone of a secure retirement.

But don’t stop there. This is also the time to envision the kind of retirement you want:

Will you travel regularly?
Do you want to help your children financially?
Will you buy a vacation home or downsize?

These answers will shape your savings targets and retirement age. The earlier you plan, the more flexibility you’ll have later.

Tips for this phase:

Use tools like a Projection Spreadsheet to explore different scenarios.
Adjust contributions between RRSPs, TFSAs, and other accounts based on your income and pension entitlements.
Stick with a consistent investing strategy that suits your goals and risk tolerance.

From GICs to REITs: A Complete Guide to Retirement Income in Canada

Canadian Retirees Guide to Income-Producing Investments Cover.

This free guide reviews 20 income-focused products. In the one-page summaries, we highlight the pros and cons, common mistakes to avoid, and who should use them.

We also created a rating system to highlight the difference between each product. The idea is to provide you with as much information as possible so you can make the right choice for your situation.

While there is no free lunch in finance, there are multiple ways to reach your retirement goals.

Download the Complete Guide to Retirement Income Products to discover which fits your retirement phase best.

2. Go-Go Years: The Fun Phase

The moment you retire, you enter the “Go-Go” phase. You’ve worked hard, saved diligently—and now it’s time to enjoy the rewards. For many Canadians, this phase lasts from their early 60s to around age 75.

Picture of a retired couple walking on the beach.

This is when you’ll likely:

Travel more
Make larger discretionary purchases
Renovate your home or relocate
Spend on family or hobbies

However, this phase also presents a new challenge: shifting from saving to spending. Many retirees feel anxious about drawing down their portfolio.

That’s why having a flexible budget is key. You’ll want:

A base budget for regular expenses (housing, food, utilities)
A variable budget for travel, new cars, and other big-ticket items

Tips for the Go-Go years:

Reassess your plan annually: simulate “retiring now” each year to update your 12-month budget based on portfolio performance.
Postpone large purchases in down markets and increase spending during up years.
Use advanced budget tools to account for one-time gifts or lifestyle upgrades.

3. Slow-Go Years: Steady as It Goes

As you move into your mid-to-late 70s, travel slows down, energy levels shift, and your budget changes again.

While you’ll spend less on big adventures, your base expenses may stay the same—and some costs (like health care or home maintenance) could increase.

You might also want to adapt your home for aging-in-place or plan for more frequent medical appointments or services.

Tips for the Slow-Go phase:

Don’t reduce your budget too aggressively; changes should be gradual.
Consider future-proofing your home for mobility and comfort.
Explore downsizing or selling assets to unlock cash if needed.

4. No-Go Years: Health First, Finances Second

This final phase typically begins in your 80s or later, when cognitive or physical health changes become more significant. You may spend more time at home, require assisted living, or home care.

At this point, your budget shifts to reflect increasing healthcare needs, estate planning, and support services. You’ll have a reliable income stream if you’ve built a strong foundation with defined benefit pensions, CPP, OAS, or annuities.

If your strategy included gradually drawing down your portfolio or even “dying with zero,” this is the time to ensure you’ve preserved enough flexibility.

Tips for the No-Go phase:

Be cautious with plans to spend aggressively in earlier phases; longevity risk is real.
Keep a home as a backup asset, or ensure stable income from guaranteed sources.
Review estate plans and consider early inheritance options or charitable giving if desired.

Final Thoughts: Plan Long, Adjust Yearly

Planning for retirement is much like planning a long road trip. You need a map for the big picture, but you’ll also need to reassess regularly, adjusting for weather, detours, and unexpected stops along the way.

One of the best habits you can develop is to “retire each year.” That means checking in annually with your budget, income, and lifestyle expectations. That way, you’re not just reacting to market corrections—you’re steering your retirement journey with confidence.

Ready to build a retirement income plan that fits your lifestyle?

From simple GIC ladders to advanced income strategies, the Canadian Retirees’ Guide to Income-Producing Investments covers 20 income-generating products with pros, cons, and tax insights for each.

👉 Get your free copy of the complete guide now and take the guesswork out of retirement planning.

2 Income Products for Your Retirement

One of the biggest challenges when planning for retirement is creating a dependable income stream that balances safety, flexibility, and long-term growth.

Fortunately, Canadian investors have access to a variety of income-generating strategies. This post explores two proven approaches: Laddered Bond ETFs & GIC Ladders and Dividend Stocks.

Each serves a distinct role in a well-diversified retirement portfolio.

Remember, they are just two of 20 retirement income products I analyzed in a comprehensive guide. The guide categorizes each option by complexity and suitability for retirees.

Whether you’re in the Go-Go, Slow-Go, or No-Go phase, this guide can help you find the right income solution.

Download the Guide Now to Get a Review of 20 Income Products

Laddered Bond ETFs & GIC Ladders

What Are They?

A laddered bond ETF is a fund that invests in a series of bonds with staggered maturity dates, typically across 1 to 5 years. As bonds mature, proceeds are reinvested automatically, maintaining a balanced maturity ladder.

Similarly, a GIC ladder involves purchasing Guaranteed Investment Certificates with staggered maturities—often one yearly from 1 to 5 years. As each GIC matures, the capital and interest are rolled into a new 5-year term, preserving the ladder structure.

How do They Generate Income?

Both products earn income through regular interest payments. The principal can be reinvested or withdrawn upon maturity, depending on your needs. Bond ETFs offer more liquidity, as they can be sold anytime, while GICs are typically locked in unless you choose redeemable options.

Pros

Balance between income and capital preservation.
Laddering smooths out interest rate risk.
GICs are CDIC-insured (within limits) for added protection.

Cons

GICs may be locked in and non-redeemable.
Bond ETFs are exposed to market risk and may lose value if rates rise.
Interest income is tax-inefficient in non-registered accounts.

Tax Considerations

Interest income is fully taxable. To minimize the tax impact, it is best held within tax-sheltered accounts such as TFSAs or RRSPs.

Who Is It Best For?

This strategy is ideal for retirees in the Slow-Go or No-Go phase who prioritize predictable income and capital protection. GICs appeal to those seeking safety, while bond ETFs offer liquidity and flexibility for those following a systematic withdrawal plan.

Common Mistakes to Avoid

Choosing long-term GICs without understanding redemption terms.
Assuming bond ETFs are “risk-free” like GICs.
Failing to reinvest matured capital, weakening the laddering effect.

From GICs to REITs: A Complete Guide to Retirement Income in Canada

This free guide reviews 20 income-focused products. In the one-page summaries, we highlight the pros and cons, common mistakes to avoid, and who should use them.

We also created a rating system to highlight the difference between each product. The idea is to provide you with as much information as possible so you can make the right choice for your situation.

While there is no free lunch in finance, there are multiple ways to reach your retirement goals.

Download the Complete Guide to Retirement Income Products to discover which fits your retirement phase best.

Dividend Stocks

What Are They?

Dividend stocks are shares of companies that distribute part of their profits as dividends—often quarterly or monthly. Canadian dividend-paying stocks with consistent dividend increases signal strong fundamentals, reliable cash flow, and prudent management.

Understand how to find the most reliable dividend stocks by reading about the dividend triangle.

How do They Generate Income?

Dividend payments offer a recurring source of income. Investors may take the dividends in cash or reinvest them for compounding growth. A well-constructed dividend portfolio can deliver monthly or quarterly income with potential for annual increases.

Pros

Tax-efficient income thanks to the Canadian dividend tax credit.
Potential for dividend and capital growth over time.
Helps offset inflation through dividend increases.

Cons

Dividends are not guaranteed—cuts can occur in downturns.
Subject to market volatility.
Requires time, interest, and some financial knowledge to manage effectively.

Tax Considerations

Eligible Canadian dividends are taxed at a lower rate than interest income in non-registered accounts, making dividend stocks a strong candidate for taxable portfolios.

Who Is It Best For?

Dividend stocks are best suited for retirees in the Go-Go or Slow-Go phases who are comfortable with market exposure. This approach rewards those seeking rising income and portfolio growth. Even novice investors can manage this strategy effectively with tools, newsletters, or professional support.

Common Mistakes to Avoid

Chasing high yields without assessing dividend safety.
Overconcentration in one sector (e.g., banks, energy).
Ignoring stock valuation when buying.

We have covered some other income products in the Dividend Guy Blog podcast episode below.

Final Thoughts: A Solution for All Retirement Seasons

Both laddered bond strategies and dividend stocks can play an essential role in your retirement plan.

Bond ladders provide stability and predictable cash flow, while dividend stocks offer growth potential and tax advantages. Choosing between them—or using a mix of both—depends on your comfort with risk, need for liquidity, and long-term income goals.

By understanding the trade-offs and aligning them with your retirement phase, you can build a resilient portfolio that supports your lifestyle—through all seasons of retirement.

Ready to build a retirement income plan that fits your lifestyle?

From simple GIC ladders to advanced income strategies, the Canadian Retirees’ Guide to Income-Producing Investments covers 20 income-generating products with pros, cons, and tax insights for each.

👉 Get your free copy of the complete guide now and take the guesswork out of retirement planning.

Canadian Depositary Receipts (CDRs): Smart Shortcut or Investment Illusion?

Imagine being able to invest in Amazon, Apple, or Microsoft in Canadian dollars—without opening a U.S. account or worrying about exchange rates.

Welcome to the world of Canadian Depositary Receipts (CDRs), a unique financial product tailored for Canadian investors who want access to big-name U.S. companies without the hassle of the U.S. dollar.

But before you jump in thinking CDRs are the ultimate shortcut, let’s take a closer look.

Are they the perfect solution?
Or are there limitations you need to know before clicking “Buy”?

Let’s explore what CDRs are, how they work, and whether they belong in your portfolio.

What Are CDRs and Why Are Canadians Interested?

CDRs are like the Canadian cousin of ADRs (American Depositary Receipts).

But instead of giving U.S. investors access to foreign companies, CDRs let Canadian investors buy fractional shares of U.S. companies—right on the Canadian market and in Canadian dollars.

They’re issued by CIBC and traded on Cboe Canada (formerly the NEO Exchange). You don’t need a U.S. brokerage account, and there’s no need to convert your CAD to USD. You log in to your brokerage, search for the CDR ticker (like AAPL.NE for Apple), and buy in Canadian dollars.

CDRs are especially appealing for two reasons:

Currency hedging: CDRs protect you from USD/CAD fluctuations—your returns aren’t affected if the loonie drops in value.
Fractional investing: Since you’re buying a slice of a U.S. share, you can invest in companies like Amazon or Microsoft for just $30–$40 CAD per share.

Sounds convenient, right? It is—but there’s more to the story.

What You Gain and What You Might Miss

Pros of CDRs

Invest in U.S. giants without buying USD
Lower share price makes big names accessible
Currency fluctuations are mostly neutralized
Dividends are paid in Canadian dollars
No special tax rules if held in an RRSP

But, of course, there are a few limitations you should know about.

The Not-So-Obvious Downsides

You miss out when the U.S. dollar gains value. Since 2021, the USD has appreciated by about 10% against the CAD. If you had held Amazon’s U.S. stock instead of the AMZN CDR, you’d have seen a 10% boost in your returns just from currency alone.
Only a subset of U.S. companies are available as CDRs. Many strong dividend-paying U.S. stocks—especially those favored by income investors—aren’t included.
They’re just fractions. Buying a CDR is like buying a slice of pizza when you want the whole pie. Sure, you can buy more over time, but you’re still tied to fractional dividend payouts and limited voting rights.

Do You Get the Dividend?

Yes! If the company pays a dividend, CDR holders receive it proportionally.

Instead of receiving the full dividend per share (like $0.62/share from Microsoft), you get the same yield (e.g., 0.85%) on the CAD value of your investment. It’s all paid out in Canadian dollars—no conversion or withholding tax if held in an RRSP.

One note of caution: If you hold your CDRs in a TFSA, the dividend is still subject to a U.S. withholding tax, even though the shares are bought in CAD.

Is it Really that Hard to Buy US Stocks?

This is where I push back on the “CDRs are more convenient” argument.

These days, most Canadian brokers offer dual-currency accounts, so you can hold CAD and USD side-by-side. And if you’re worried about conversion fees, there’s a great workaround known as Norbert’s Gambit, which lets you convert CAD to USD for a fraction of what banks charge. It takes a bit of setup, but for long-term investors, it’s well worth it.

Want to learn how Norbert’s Gambit works and when it makes sense to use it?

Get the full explanation in the CDR Guide (yes, it includes a step-by-step example and diagram).

My Personal Take: I Don’t Use CDRs-Here’s Why

Despite all their benefits, I don’t invest in CDRs myself, and here’s why:

I like the long-term upside of holding U.S. dollars. Over decades, the CAD/USD fluctuations tend to even out, but when the USD rises, I want to benefit from it.
I prefer direct ownership of U.S. stocks. More options, full shares, full dividends.
I already have a USD account. Once you’re set up, buying U.S. shares directly isn’t any more complicated, and I keep the dividends in USD for reinvestment.

That said, CDRs aren’t bad. They’re actually good for newer investors, those starting with small amounts, or anyone uncomfortable dealing in U.S. currency. But they’re not revolutionary. And they’re not for everyone.

Want to Dive Deeper?

In the CDR Guide, you’ll learn:

How fractional investing works in practice
The complete list of all 86 CDRs available as of April 2025
How currency hedging affects your long-term returns
Why most high-quality dividend stocks aren’t available as CDRs
My complete breakdown on Norbert’s Gambit for CAD/USD conversion

Subscribe now to get your copy of the Canadian Depositary Receipts (CDRs) Guide.

Building an Income Portfolio Made Easy

“What if your dividend income was more than just a yield?”

We all dream of the same thing: freedom.

Whether that’s retiring comfortably, spending more time with family, or finally ticking off that epic trip to Tuscany — the goal is simple: build income that works for you, not the other way around.

But here’s the problem: Most people start their income journey with the wrong question:

“How much yield can I get?”

While it sounds like a smart starting point, this approach is more of a napkin calculation than a real investment plan. It sets you up to chase yield, walk into value traps, and — worst of all — risk your retirement income.

So let me walk you through a better way to build an income portfolio that’s built to last.

The Shift: From Yield Chasing to Dividend Growth Conviction

Let’s kill a myth right now: High yield does not equal high income security.

Just because a stock pays 7% doesn’t mean it deserves a place in your portfolio. High-yield stocks are often the market’s way of warning you — not rewarding you.

We’ve seen this movie before: A company offers a juicy dividend, everyone piles in… then the earnings drop, the dividend gets slashed, and suddenly you’ve lost both your income and your capital. That’s not income investing — that’s gambling dressed up as a paycheck.

Instead, I focus on dividend growers. These are companies that:

Grow their revenue (top-line strength)
Grow their earnings (bottom-line power)
And grow their dividend (shareholder commitment)

This is what we call the Dividend Triangle — and it’s the first thing I look for when building an income portfolio.

But let’s go one step deeper:
For retirees, dividend growth is what protects their lifestyle.

Here’s why:

🔒 It protects you from inflation.
Prices rise every year — groceries, gas, healthcare. A company that increases its dividend annually ensures your income keeps pace.
⏳ It guards against longevity risk.
You may live 25–30 years in retirement. If your income stays flat, your purchasing power will fall dramatically.
🛡️ It reflects a strong business model.
Companies that grow their dividend can only do so by increasing their profits and cash flow — year after year. This is your best defense against surprises.

“A 3% yield growing at 8% per year will beat a 6% yield that never grows — and do it with less risk.”

Imagine this:

You retire with a $1 million portfolio. You choose stable dividend growers paying an average of 3.5%, with a dividend growth rate of 7%. In 10 years, your income will nearly double — without you lifting a finger.

Now compare that to locking in a 6% yield with no growth. Ten years later, your income hasn’t changed — but your costs have. You’re forced to sell shares to keep up, and that’s where the retirement stress kicks in.

Dividend growth isn’t just about returns — it’s about peace of mind.

If this approach resonates with you — focusing on dividend growth instead of just chasing yield — you’ll want to dig deeper into the system I use to build reliable, inflation-resistant income streams.

From Theory to Action

That’s exactly why I created the Dividend Income for Life Guide. It breaks down the step-by-step process for building your dividend pension plan — no guesswork, no spreadsheets required.

Inside the guide, you’ll learn how to:

✅ Build a portfolio that generates growing income in retirement
✅ Apply the Dividend Triangle to select stronger companies
✅ Avoid common traps like over-diversification and yield chasing

📘 Ready to go from theory to action? Download the guide and start designing the income stream you’ll rely on for decades:

Start With This Core Strategy

If you’re new to building a dividend portfolio, here’s a simple formula I’d suggest using as your foundation:

1. Define Your Target Yield

Aim for a total portfolio yield of ~3–4%
This lets you combine lower-yielding growers with stable income generators

🔥 Pro Tip: It’s not about finding one perfect stock — it’s about building a team that works together.

2. Mix Yield with Growth

Create a blend like this:

Low yield, high growth: Apple, Visa, Couche-Tard
Moderate yield, consistent growth: Johnson & Johnson, BIP
High yield, low growth (if safe!): Selected REITs or utilities

If you can access a Stock Screener, use the Chowder Rule (Yield + 5yr Dividend Growth ≥ 9%) to screen your picks.

Sector Allocation: Balance for All Seasons

No single sector is recession-proof, but some bend instead of breaking.

There are 11 sectors that we can sort into three categories:

Income/stability: Sectors where you find many mature businesses that are recession-resistant.
Growth: Sectors where you find companies with multiple growth vectors, able to surge during economic booms.
Both: Sectors where you find companies balancing growth and stability.

Income/Stability Sectors	Growth Sectors	Sectors Balancing Both
Consumer Staples	Consumer Discretionary	Financials
REITs	Information Technology	Communication Services
Healthcare	Energy	Industrials
Utilities	Materials

Do I need to invest in all 11 sectors?

Not at all. You must invest in sectors that fit with your goals, i.e., stability vs growth, and that you understand.

There’s no point in investing in tech stocks if you have no clue how the semiconductor industry cycles work. You won’t be happy when investments are down, but if you understand the industry’s characteristics, you won’t panic.

How much to put in each sector?

⚠️ Pro Tip: Keep any one sector below 20–25% to reduce risk.

Again, there are no hard rules here. I like to have a maximum of 20% invested in my favorite sectors and around 10% in others. However, I sometimes go above 20% due to the great performance of a few companies.

I invest in various industries within the same sector to avoid being impacted by a single market event.

For example, there is a big difference between:

Having 25% invested in financial services spread across five Canadian Banks, with 5% in each one.
Having 5% in each of the following: Royal Bank (Canadian bank), BlackRock (asset management), Visa (payment processor), Great-West Life (life insurance), and Brookfield Corp (alternative asset management).

Number of stocks per sector?

That depends on how many stocks you want to hold and how many sectors you want to invest in.

You can select the best 2, 3, or 4 companies in each sector you want exposure to. That would likely lead to a portfolio of 20 to 40 stocks. Purely by chance, that’s very close to what I think is the ideal number of stocks.

Number of stocks in my portfolio?

Holding fewer than 20 stocks means the room for error is thin. This strategy could be great for high-conviction investors, but I prefer securing a bit more diversification.

Conversely, if you go above 40, you’re getting closer to building your own ETF. Monitoring 70 companies quarterly will prove daunting, and you’ll eventually miss information.

Also, if a stock represents 0.32% of your portfolio, even if it doubles in value or crashes by 80%, you will never feel it.

Dividend Income = Your Personal Pension Plan

If you’re retired — or planning to be — think of your dividend portfolio as a self-built pension plan.

Each dividend-paying stock you own is like a brick in your retirement income wall. And just like any wall, some bricks are stronger than others.

Companies that grow their dividends year after year are the reinforced bricks. They strengthen your income over time and help it keep up with inflation. On the other hand, high-yield stocks that don’t grow — or worse, cut their dividends — are like hollow bricks. They may look solid, but when pressure builds (like inflation or a market downturn), they crack.

This is why dividend growth matters more than yield. It’s not just about getting paid today — it’s about getting more income every year, without selling shares.

Think of dividend growth stocks as inflation-adjusted paycheques — just like a pension, but one you control.

Again, if your portfolio yields 3.5% today, and your holdings grow their dividends by 6–8% annually, your income will double roughly every 9–12 years. That’s the income security most traditional pensions can’t even match.

Bottom line: A strong dividend portfolio is built one solid, growing company at a time. Focus on quality. Focus on growth. And watch your income become as reliable — and rising — as a pension.

The Traps to Avoid

Now that you’ve got the building blocks of a strong dividend income portfolio, it’s just as important to know what not to do. Even the best strategy can fall apart if you let fear, noise, or impatience take the wheel.

Here are three common traps I see investors fall into — and how to avoid them:

Chasing High Yield
If it looks too good to be true… it probably is. Many of the worst dividend cuts started with “safe” 6%+ yields. Always check the dividend triangle before reaching for yield.
Over-diversification
Owning 50+ stocks doesn’t make you diversified — it just makes you tired. Stick to 20–40 quality holdings across sectors you understand and can monitor.
Waiting for a Pullback
Time in the market > timing the market. Invest when the company’s fundamentals support your thesis — not when CNBC says “buy.”

Final Thoughts: Income That Grows With You

Instead of asking:

“How much income can I generate today?”

Start asking:

“How much income can I grow over the next 10, 20, or 30 years?”

That’s the mindset that builds wealth and protects your retirement.

Start with dividend growers. Build a balanced portfolio. Stay consistent. Let time do its thing.

Ready to Begin?

If you’re not sure where to start, here’s your mini checklist:

✅ Review your current holdings: strong dividend triangle?
✅ Identify your sector gaps
✅ Set a yield-growth blend target

And remember — you’re not alone. We’re building dividend income for life, one stock at a time.

Want a complete roadmap to get started? Download the Dividend Income for Life Guide — it’s packed with real-world insights, simple strategies, and the exact framework we use to help thousands of investors retire with confidence.

This guide will help you:

✅ Build a reliable income stream — even during market volatility
✅ Avoid costly mistakes (like chasing yield or holding forever)
✅ Invest with clarity, not guesswork

Start building your retirement income plan today:

And remember — you’re not alone. We’re building dividend income for life, one stock at a time.