Investing: Building “Fuck You Money”
The goal of investing isn’t necessarily to retire at 30 or 35. The real goal is having “Fuck You Money” — the kind of financial independence that lets you walk away if your boss screws you, if you get sick, or if life throws you a curveball. It’s about freedom, not quitting work forever.
Why Risky Bets Are Dangerous
Everyone loves to gamble on meme stocks and crypto, but here’s the math reality:
- If you lose 20% on an investment, you don’t need 20% to break even — you need 25%.
- If you lose 50%, you need 100% just to get back to zero.
- If you lose 80%, you need 400%... good luck with that.
That’s why the foundation of your portfolio should be safe, broad ETFs — not YOLO bets.
Financial Instruments (Good & Bad)
- ETFs → Low-cost, diversified, tax-efficient. The gold standard.
- Mutual Funds → High fees, usually underperform. We hate these.
- GICs → Safe, guaranteed, but very low returns (good for emergency funds).
- Bonds → Lower risk than stocks, steady returns. Good for balancing risk.
- Individual Stocks → Fine if you enjoy research, but don’t make them your core.
Which Accounts to Use in Canada
Your priority order should be:
- TFSA → Tax-free growth. Max this out ASAP.
- FHSA → If you’re buying a first home, it combines RRSP-like deductions with tax-free withdrawals.
- RRSP → Best if your income is $100k+ and you expect to retire in a lower bracket. Especially important if you don’t have a work RRSP.
The golden rule: always max the TFSA and FHSA accounts before taxable investing.
Platforms: QuestTrade vs Wealthsimple
- QuestTrade: Best for more experienced investors, cheap ETF trading.
- Wealthsimple: Beginner-friendly, can automate deposits so you don’t even think about it.
Recommended ETFs (My Portfolio, 2025)
For most people, a simple 50/50 split of VFV and VEQT is enough to cover global equities and the S&P 500. Everything else I hold is more for experimentation / fun. Here's a snapshot of my holdings from highest to lowest:
- VFV → S&P 500 ETF (~10%/year). Tracks the 500 largest U.S. companies like Apple, Microsoft, Amazon. Core holding for U.S. market exposure.
- VEQT → Global equity ETF (~8%/year). Invests in a mix of U.S., international, and Canadian stocks. Core holding for worldwide diversification.
- VTI → U.S. total stock market (~9%/year). Covers virtually all U.S. publicly traded companies, large, mid, and small-cap. Optional additional U.S. exposure.
- XEI → Canadian dividend ETF (~6%/year). Holds top Canadian dividend-paying companies like banks, utilities, and telecoms. Focuses on income.
- VDY → Canadian high dividend (~5-6%/year). Includes high-yield Canadian companies like Royal Bank, Enbridge, BCE. Conservative income generation.
- VGRO → Growth portfolio ETF (~7%/year). Balanced global equity/bond fund, mix of Canadian, U.S., international stocks, and some bonds. Moderate risk/growth.
- URA → Global uranium ETF (~15%/year). Invests in uranium mining companies worldwide. High-risk / speculative, sensitive to uranium prices.
- VCE → Canadian equity ETF (~6%/year). Focused on Canadian large-cap stocks. Smaller slice of Canadian market for diversification.
- AC → Global clean energy ETF (~10%/year). Invests in renewable energy companies globally, like wind, solar, and battery tech. Higher volatility.
- PFE → Individual stock (Pfizer) (~5% dividend + modest growth). Large pharmaceutical company, known for vaccines and prescription drugs. Riskier than ETFs but provides dividend and growth potential.
Note: Realistically, for 90%+ of investors, just VFV and VEQT 50/50 is enough to build serious wealth. Everything else is more for fun / exploring niche exposures.
VFV Monthly Contributions: Future Value
Assuming 10% annual return (compounded monthly), contributions at the end of each month:
| Monthly Deposit | 5 Years | 10 Years | 15 Years | 20 Years | 25 Years |
|---|---|---|---|---|---|
| $1,000 | $77,245 | $200,963 | $388,992 | $660,995 | $1,041,034 |
| $2,000 | $154,490 | $401,926 | $777,984 | $1,321,991 | $2,082,068 |
| $3,000 | $231,735 | $602,889 | $1,166,976 | $1,982,986 | $3,123,102 |
MER (Management Expense Ratio)
Always check the MER. For ETFs, it’s usually < 0.2%. For mutual funds? Often 2%+. That 2% fee might not sound like much, but it can cost you hundreds of thousands over your lifetime.