Reader,

Happy Sunday Monday, and to all my Canadian readers, Happy Thanksgiving! 🍂 My apologies, I had a technical issue and the newsletter didn't go out last night!

This is actually the very first time Katie and I have been away from our parents for the Thanksgiving long weekend. Instead of the traditional turkey dinner at home, we are currently down in Miami (specifically Doral) using a 4-night, 5-day voucher we picked up through the Marriott Vacation Club. We are continuing our annual quest to watch an NFL game at a different stadium every year, and today we are heading over to Hard Rock Stadium to watch the Bengals take on the Dolphins.

Before we left for this trip, Katie and I were actually interviewed earlier in the week by a large Canadian bank (I can't disclose which one until the piece is officially published!). We discussed our investing approach as a couple, the dynamics of managing money together, and the trials and triumphs we've faced along the way. Getting to share that side of our life on a major platform was a surreal moment for us.

Yesterday was a massive personal win. It was the first time since our honeymoon six months ago that I did not touch my laptop to do a single minute of work all day. We spent the entire afternoon at a beach club in South Beach, soaking in the flawless weather and eating some absolutely delicious Peruvian food.

We are doing this trip with another couple, Rob and Jenn. Rob and I have been friends for years, and we've connected even more deeply this year after he rejoined the golf club following the launch of his mortgage business.

Looking back, it is crazy to think about how Rob and I actually met. Back in 2019, I heard him speaking as a guest on an investing podcast. I resonated with his approach, so I sent him a quick cold DM on social media asking if he wanted to meet up for coffee. That coffee turned into a round of golf, and we never looked back. Katie and Jenn just met for the first time earlier this summer, and we are hoping their relationship grows into something similar to what Rob and I share.

Never discount the power of a small outreach. A simple DM, a coffee invite, or a quick introduction can completely alter the trajectory of your network, your business, and your life.

Because we are heading out to the stadium tailgate shortly, I am keeping this morning’s newsletter brief and getting straight to a controversial financial topic.

Rethinking the RRSP Default

A fascinating piece dropped in Bloomberg this week discussing why high earning professionals are drastically changing their 401(k) (and in Canada, RRSP) saving strategies.

For decades, the financial industry has hammered the exact same advice into the heads of healthcare professionals: Max out your RRSP every single year.

The logic behind this standard advice seems sound on the surface: you get a tax deduction today while your clinical income is high, and you pay taxes on the withdrawals in retirement when your income, and therefore your tax bracket, is theoretically much lower.

But as a clinician building real wealth, you have to step back and ask the ultimate question: DOES IT MAKE SENSE FOR ME?

I have not contributed a single dollar to my RRSP in 9 years.

If you are actively acquiring real estate, building a massive dividend paying ETF portfolio, or growing business equity outside of the clinic, you have to challenge the assumption that you will be "poor" in retirement. Based on the cash-flowing assets I hold and continue to acquire, I firmly believe I will be in a higher income category when I step away from the clinic than I am right now.

If your asset base is going to generate substantial cash flow in your 60s and 70s, aggressively deferring your taxes into an RRSP today might mean you are simply kicking the tax can down the road, only to be taxed at a much higher marginal rate later in life.

You cannot blindly follow financial dogma just because it is what the bank teller told you to do. The "lower tax bracket in retirement" rule applies perfectly to employees who rely solely on saving a percentage of their wages. It does not automatically apply to clinicians who are aggressively building asset-based wealth.

Run your own numbers, project your future asset income, and figure out if maxing that RRSP actually serves your long-term tax strategy.

Time to put the laptop away and head out to the tailgate.

Enjoy the rest of your Sunday.

​@financiallyfulfilledpro and Certified Financial Counsellor CFC™

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