The last decade has seen several far-reaching economic changes. Indeed, several countries have seen their economies take off in the wake of the 2008 global financial crisis. This breakthrough made economic globalization a reality, democratizing the technology sector on a global scale. This societal metamorphosis has not come without consequences, as the cost of living has risen significantly in many countries. Moreover, workers’ hourly wages have not kept pace with the cost of living, resulting in significant social disparities.
Against this backdrop, several individuals have come out to criticize the central place of work in our daily lives, calling for collective reflection on the advent of a balanced lifestyle free of choice. This philosophy is at the root of the “FIRE” movement, which has been overgrown over the last ten years. FIRE stands for “Financial Independence, Retire Early.”
In this article, we analyze the main features of the FIRE movement. More specifically, we’ll look at its origins, basic concepts, various derivatives and main criticisms. A list of digital resources dealing with the FIRE movement will also be presented at the end of this article.
Origins of the FIRE movement
The origins of the FIRE movement are as diverse as they are varied. We can, however, pinpoint a few key events that led to its rise. The first stirrings of the FIRE movement can be seen in Vicky Robin and Joe Dominguez’sYour Money or your life. It lays the groundwork for a lifestyle based on voluntary simplicity, the quest for financial independence and early retirement. What’s more, we’re starting to think seriously about the place of work and its omnipresence in our lives. This book, published in 1992, became a bestseller and inspired many to join the movement.
This is particularly true of astrophysicist Jacob Lund Fisker, whose 2010 book Early Retirement Extreme sets out in detail the fundamentals of early retirement. This article deals with the theoretical foundations of frugalism, i.e. “saving without depriving oneself and investing to retire early as soon as possible”. He also explains the need to invest in index funds on the stock market to provide the funds needed for early retirement.
In the same vein, in 2011 Canadian engineer Peter Adeney launched the blog Mr Money Mustache which chronicles his journey to early retirement. Her journey to financial independence inspired many others, including JL Collins, author of The Simple Path to Wealth, and Paula Plant, creator of the blog Afford Anything. Afford Anything among others. At the same time, several Quebec-based blogs on financial independence and early retirement have sprung up, including Jeune Retraité, Sorcière Frugale, Retraite 101 and Se payer en premier, to name but a few.
Basic concepts
The FIRE movement rests on several theoretical foundations, which we will explore here.
The 4% rule
This rule determines the amount of money needed for early retirement by considering your annual expenses. So if you multiply your estimated annual retirement expenses by 25, you’ll get the amount you need to retire early. The 4% rate represents the safe amount of your net worth that you can withdraw annually to pay your retirement expenses. Here’s a fictitious scenario illustrating the precepts of this rule.
A) Jonathan and Valerie are both 42 years old. They currently spend $40,000 a year and have combined net assets of $400,000. They have no children and don’t plan to have any. They plan to reduce their annual expenses to $30,000 in retirement. They decide to use the 4% rule to determine the amount needed for their retirement.
Here is the calculation: $30,000 (targeted annual expenses) X 25 = $750,000
The 3.25% rule
However, this rule should be treated with caution. Indeed, the earlier you retire (before the age of 45), the more cautious you should be in your estimates. With this in mind, we recommend applying the 3.25% rule, which will give you greater latitude by multiplying your annual expenses by 30.
Here’s an example of this rule.
B) Paul is 26 years old and single. He currently spends $15,000 a year and has net assets of $100,000. He has no children and has no plans to have any. He expects to maintain the same level of annual expenses once he retires. He hopes to retire before the age of 45. He decides to compare the 4% rule with the 3.25% rule to determine how much he needs to retire.
3.25% rule: $15,000 (targeted annual expenses) X 30 = $450,000
Compound interest
This concept, described as the “eighth wonder of the world” by Albert Einstein, enables the accelerated accumulation of money. Compound interest applies to the stock market and allows for accelerated capital accumulation. Here’s a concrete example to illustrate the usefulness of this concept.
Example Let’s say you have an initial sum of $5,000 and aim for an annual return of 7%. Simple interest: $5000 + (7% of $5000 ) =? Answer: $5,000 + $350 = $5,350
You end up with a sum of $5,350 at a simple interest rate. Now let’s imagine that you want to invest the same amount of money every year at a similar interest rate for ten years.
Many of you will opt for the following calculation, given the similar target return: $5,350 X 10 = $53,500. This return, however attractive, is not valid, as it does not consider the compound interest and the exponential value your investment will gain over the years. In concrete terms, here’s a table showing the evolution of your nest egg, considering compound interest.
Years
Simple interest
Compound interest
1
5 350$
5 350$
2
10 700$
10 724.5$
3
16 050$
16 475.22$
4
21 400$
22 628.48$
5
26 750$
29 212.47$
6
32 100$
36 257.35$
7
37 450$
43 795.36$
8
42 800$
51 861.04$
9
48 150$
60 491.31$
10
53 500$
69 725.70$
Looking at this table, we can see that the amount after ten years of investment is $69,725.70 if we consider compound interest. We’re talking about a difference of over $16,000 with a simple interest rate of $53,500!
But how is this possible, you may ask? It’s simple: the interest rate on your assets grows exponentially each year. More specifically, if we take year 2 of your investment, we can calculate an interest rate of 7% on your initial investment of $5,000, now worth $5,350, and on the new investment of $5,000.
Initial amount with interest year 1: $5,350 X 0.07 (7%) = $374.5 Amount year 2 = $5,000 X 0.07 (7%) = $350 Total = $5,350 + $375.5 + $5,000 + $350 = $10,724.5
This strategy is at the heart of the FIRE movement’s financial approach, enabling them to make substantial gains over the long term. Let’s take a look at the means used by members of the FIRE movement to achieve financial independence.
Resources
Massive savings, passive investment and optimized spending: these are fundamental values for anyone aiming for financial independence.
Massive savings
While the savings rate recommended by financial experts is generally between 15% and 20%, the rate favoured by the FIRE movement is much higher (over 50%). These massive savings are then transposed into various financial vehicles for passive enrichment. By passive enrichment, we mean investment methods that allow you to accumulate money in your sleep.
Passive investment
Here’s a brief overview of the main sources of passive income:
A) Stock market investment
It’s the ultimate source of passive income for members of the FIRE community. The accumulated sum is deposited in a stock market account, which is invested in various financial products. The aim of this exercise is to maintain this nest egg in the stock market for several years, to benefit from the substantial gains created by compound interest. Here’s an overview of the main financial vehicles favored by individuals in the FIRE movement:
Exchange-traded funds (ETFs)These are multi-sector funds that track international stock indices such as the SP500, TSX and Nikkei. These funds have light management fees, which means faster capital accumulation.
Mutual funds These are funds similar to ETFs but with slightly higher management fees.
Dividend stocks: These are stocks traded on the stock market that distribute a company’s profits (dividends) to each of its investors.
CryptocurrenciesBuy Bitcoin, Ethereum, Solana, Polkadot, Cardano or cryptocurrency ETFs.
B) Real estate investment
This is another source of passive income prioritized by the FIRE movement. There are several ways to generate passive income from real estate. It should be noted that most of the desired passive real estate returns will be achieved after an initial phase that requires active involvement (renovations, planning, organization). Here is an exhaustive list of real estate investments recommended by members of the FIRE movement:
Acquisition and management of a multiplex: Use of leverage and tenant rent collection
Acquisition and management of a rooming house for students: Use of leverage and collection of student rents
Acquisition and management of a commercial or semi-commercial property: Use of leverage and collection of rents from retailers
Acquiring and managing a rental chalet: Short-term rentals are currently in demand. This trend was confirmed during the pandemic.
Subletting unused space: Unused parking spaces, garages and basements are all in demand right now.
Investing in real estate stock market investments: REITs (Real Estate Investment Trusts) are very popular on the stock market. They track a passive market index of the best-performing real estate securities.
C) Creation of innovative customized content on demand
This technique will also require active involvement in the initial phase but could yield an attractive passive return if demand is there. Here are a few ideas from the FIRE movement to help you generate passive income:
Creating a specialized Youtube channel: You could earn passive revenue for each new view if your content becomes popular.
Creation of a specialized course catering for a wide range of customers: this could cover language learning, Photoshop use or computer coding, for example.
Writing: Publication of a paid ebook or digital blog.
Creation of a digital business: Creation and management of an e-commerce, “dropshipping” which allows you to outsource your stocks without managing deliveries.
Optimizing expenses
It’s essential for anyone aspiring to financial independence to optimize their day-to-day expenses. Here are a few practical tips from the FIRE movement to help you achieve this goal:
Online shopping rewards
Many digital portals, such as Rakuten and Great Canadian Rebates, offer attractive cashback on online purchases. These accessible interfaces act as intermediaries between retailers and consumers. This method gives consumers interesting feedback on their purchases. Retailers, too, are not left out in the cold as they gain greater exposure, enabling them to expand their customer base.
Several loyalty programs are available to Canadian consumers. These programs are often affiliated with different credit cards to facilitate the accumulation of rewards. Here are the five types of loyalty programs:
Air: This category includes programs linked to airlines. By accumulating points, you can obtain discounts on flights. The best-known airline loyalty program in Canada is Aeroplan, affiliated with Air Canada. British Airways (Avios – British Airways Executive Club) and Westjet (Westjet Rewards) also allow the accumulation of airline points.
Hotel: These programs are attached to major hotel chains such as Marriott Bonvoy, Hilton and Best Western. Points earned earn discounts on hotel stays. It should also be noted that in some cases, points collected can be exchanged for air points.
Stores: There are also different programs attached to big-box stores (Hudson’s Bay, Simon’s and Canadian Tire), food chains(Metro, PC Optimum and Inspire SAQ), restaurant-affiliated establishments(Starbucks, Second Cup and Tim Horton) and gas stations(Petro-Canada).
Travel-Points: These types of rewards offer discounts not only on flights but also on all kinds of travel expenses, such as accommodation and car rental. The best-known travel points program in Canada is Air Miles. The American Express, Membership Rewards program also allows you to earn points for travel. Finally, several banks allow travel points to be accumulated through affiliated credit cards. These include CIBC (Aventura), TD (Rewards), BMO (Rewards), NBC (National Bank Points), Scotia (Scotia Bonus Points), HSBC (HSBC Rewards) and RBC (RBC Rewards).
Cash back: Finally, it’s also possible to accumulate cash back. The Air Miles program allows you to earn cash back quickly. Other programs include Desjardins Bank’s Bonidollars loyalty program and MBNA Bank’s rewards program.
Selecting a credit card can seem complicated at first glance, but at milesopedia.com, you can choose your card simply and according to your needs. Our digital platform offers you a wide range of guides and analyses covering the five categories of financial products mentioned above. What’s more, numerous testimonials are shared by members of the Milesopedia community, giving sound advice on how to achieve low-cost travel.
Payment of recurring expenses
Achieving financial independence also means optimizing returns on recurring expenditures. It’s worth noting that you can now pay your rent, various property taxes and amounts owed to the government by credit card. This operation is made possible by digital platforms that allow you to pay for your day-to-day expenses using a credit card for a fee of 1% to 3% on the transaction. The primary digital interfaces are Plastiq, Paysimply and Paytm. Using credit cards for these expenses will help you earn rewards faster.
$2,000ⓘMilesopedia first-year estimateFirst-year valueWelcome bonus$2,000Total$2,000Rewards on your spending are not included. The calculator that adds them from your own profile is on the card's page.
Milesopedia first-year estimateⓘFirst-year valueWelcome bonus$2,000Total$2,000Rewards on your spending are not included. The calculator that adds them from your own profile is on the card's page.
Limited Time Offer! Apply by December 1, 2019 to earn up to 60,000 Aeroplan Miles (equivalent to 2 business class short-haul roundtrip flight rewards)¹ as follows:
Welcome Bonus of 25,000 Aeroplan Miles when you make your first Purchase with your card¹.
+ Earn 2x miles on your purchases4,5 made using your Card for a total of up to 30,000 Aeroplan Miles, for first 3 months¹.
+ Earn 5,000 Aeroplan Miles when you add an Authorized User to your Account by December 1, 2019. Annual Fees for Authorized Users continue to apply¹.
Earn Aeroplan Miles with every purchase made on your Card and arrive at your dream destination sooner
Enjoy Air Canada®³ and Visa Infinite Privilege benefits4
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Earn 1.5 miles5for every $1 spent on eligible grocery, gas, drugstore and Air Canada Purchases (excluding Air Canada Vacation packages) made with the Card (capped annually on the first $100,000 across these categories)
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Type
Details
Personal annual income
-
Household annual income
$200,000
Purchase APR
19.99%
Cash Advance APR
22.99%
Interest Grace Period
21 days on all new purchases
Balance Transfer Rate
22.99%
Foreign Transaction Rate
Annual Fee
$399
Authorized User Cards
$99
Balance Transfer Fee
Promotional Balance Transfer/ Cheque Fee: 3% of the amount of each Balance Transfer or TD Visa Cheque that we may offer to you at a promotional interest rate which is an interest rate that is lower than the regular annual interest rate that applies to Cash Advances on your Account. The Bank may waive or lower this 3% fee at the time the promotional interest rate offer is made to you. You will be advised of the exact fee that applies at the time the offer is made.
Cash Advance Fee
1% of the amount of the transaction (minimum fee of $3.50 up to a maximum fee of $10.00) (in Canada) or $5.00 (outside Canada), plus $3.00 at a PLUS* network ATM. (Fee does not apply to a Balance Transfer or TD Visa Cheque)
Foreign Currency Conversion Fee
2.50%
Over Credit Limit Fee
N/A
Disclaimer
Annual interest rates, fees and features are current as of June 19, 2017 unless otherwise indicated and subject to change.The Aeroplan Program is a coalition loyalty marketing program owned and operated by Aeroplan Inc. Visit aeroplan.com for complete terms and conditions of the Aeroplan Program. The Toronto-Dominion Bank and its affiliates are not responsible for the Aeroplan Program.1 Must apply by December 1, 2019. Welcome Bonus of 25,000 Aeroplan Miles will be awarded to the Aeroplan Member account associated with the TD Aeroplan Visa Infinite Privilege* Card Account (“Account”) only after the first Purchase is made on the Account. Welcome Earn Bonus of 2x in Aeroplan Miles ("Welcome Earn Bonus") applies to new Account in the first 3 months of Account opening ("First 3 Months") to a maximum total collective miles of 30,000 ("Welcome Earn Bonus Cap") on all purchases charged to your ("Account"). During the Welcome Earn Bonus promotional period, 3 Aeroplan Miles are earned for each $1.00 in Purchases of eligible gas, groceries, drugstore, and aircanada.com products and services (excluding Air Canada Vacations packages, car rentals, hotel bookings, and other third party partner products and services that can be purchased through aircanada.com) charged to your Account and 2.5 Aeroplan Miles are earned for each $1.00 for all other Purchases charged to your Account. Any returned items, refunds, rebates or other similar credits on any Purchases made during the First 3 Months will reduce or cancel the Aeroplan Miles earned at the Welcome Earn Bonus on the original Purchase, as applicable. Welcome Earn Bonus Cap: Once the Welcome Earn Bonus Cap is reached, any further Purchases made in the First 3 Months will earn Aeroplan Miles at the regular 1.5 Bonus Aeroplan Miles that applies to each $1.00 in Purchases of eligible gas, groceries, drugstore, and aircanada.com products and services (excluding Air Canada Vacations packages, car rentals, hotel bookings, and other third party partner products and services that can be purchased through aircanada.com) and 1.25 Aeroplan Mile to each $1.00 to all other eligible Purchases. To receive the additional 5,000 Aeroplan Miles for adding an Authorized User to your Account ("Authorized User Bonus"), you must: (a) apply for an Account and add an Authorized User between September 4, 2019, and December 1, 2019; and (b) Authorized User must call and activate their Card by January 31, 2020. You can have a maximum of three (3) Authorized Users on your Account but you will only receive 1 (one) 5,000 Authorized User Bonus Aeroplan Miles offer. Annual Fee for each Authorized User Card added to the Account will apply. The Primary Cardholder is responsible for all charges to the Account, including those made by any Authorized User. Other conditions apply. Offers may be changed, withdrawn or extended at any time and cannot be combined with any other offer unless otherwise specified. Welcome Bonus and 2x miles earned through Welcome Earn Bonus are not eligible for Aeroplan status. Your Account must be in good standing at the time bonus miles are awarded. Please allow 8 weeks after the conditions for each offer are fulfilled for the miles to be credited to your Aeroplan Member account.The number of Aeroplan Miles required for the destination is accurate as of September 4, 2019 and is subject to change at any time by Aeroplan Inc. According to Aeroplan's current reward chart, destinations reflect two short-haul Fixed Mileage Flight Reward® in Business Class departing from within Canada or the continental US (plus applicable fees and taxes). Fixed Mileage Flight Reward availability is capacity controlled and is subject to availability at time of booking as well as seasonality of demand. Aeroplan Flight Rewards are subject to taxes, landing and departure fees, and other charges and surcharges may apply. Aeroplan Partners, rules and regulations are subject to change without notice. For full details on Aeroplan's current reward chart, please visit aeroplan.com.2 Primary Cardholder remains liable for all charges to the Account, including those made by an Authorized User.3 All Air Canada benefits are fulfilled in whole or in part by Air Canada or its designated affiliates or other third parties, and are subject to change at any time. The Toronto-Dominion Bank and its affiliates are not responsible for fulfilling these benefits. For more details about these benefits, please contact Air Canada directly. Air Canada Benefit Eligibility – Priority Travel Services : With the TD Aeroplan Visa Infinite Privilege Card, Air Canada benefits (the complimentary first checked bag, priority check in and priority boarding) apply whenever the Primary Cardholder travels on a flight operated by Air Canada, Air Canada Rouge or under the Air Canada Express banner. Flights operated by other airlines are not eligible. To access priority check-in and priority boarding, the Primary Cardholder must include their Aeroplan Number on their reservation at time of booking, or redeem their Aeroplan flight reward (defined as Fixed Mileage Flight Rewards® or Market Fare Flight Rewards®) using miles from their Aeroplan account. To access these benefits, the Primary Cardholder must also ensure that the name on the Air Canada flight booking is identical to the name on the Aeroplan account profile of the traveler. Where zonal boarding is available, the priority boarding status will be recognized by a Zone 2 descriptor for the Primary Cardholder and companions travelling on the same reservation checking-in at the same time, which will be displayed on the Air Canada issued boarding pass. Priority check-in may also be extended to companions travelling on the same reservation checking-in at the same time as the Primary Cardholder. To access priority check-in and priority boarding, the Primary Cardholder may be required to show their TD Aeroplan Visa Infinite Privilege* Card to the Air Canada agent. Please allow two (2) weeks from receiving your Card for these Air Canada benefits to be activated. The complimentary first checked bag , up to 23kg (50lb), applies whenever the Primary Cardholder travels on a flight operated by Air Canada, Air Canada Rouge or under the Air Canada Express banner. Flights operated by other airlines are not eligible. To access this benefit, the Primary Cardholder must include their Aeroplan Number on their reservation at time of booking, or redeem their Aeroplan flight reward (defined as Fixed Mileage Flight Rewards or Market Fare Flight Rewards) using miles from their Aeroplan account. To access this benefit, the Primary Cardholder must also ensure that the name on the Air Canada flight booking is identical to the name on the Aeroplan account profile of the traveler. The complimentary first checked bag applies solely to the Primary Cardholder, and service charges for additional/oversized/overweight baggage may apply. Applicable on flights that do not already offer a complimentary first checked bag. To access this benefit, the Primary Cardholder may be required to show their TD Aeroplan Visa Infinite Privilege * Card to the Air Canada agent. Please allow two (2) weeks from receiving your Card for these Air Canada benefits to be activated.The complimentary first checked bag, up to 23kg (50lb), applies whenever the Primary Cardholder travels on a flight operated by Air Canada, Air Canada Rouge or under the Air Canada Express banner. Flights operated by other airlines are not eligible. To access this benefit, the Primary Cardholder must include their Aeroplan Number on their reservation at time of booking, or redeem their Aeroplan flight reward (defined as Fixed Mileage Flight Rewards or Market Fare Flight Rewards) using miles from their Aeroplan account. To access this benefit, the Primary Cardholder must also ensure that the name on the Air Canada flight booking is identical to the name on the Aeroplan account profile of the traveler. The complimentary first checked bag applies solely to the Primary Cardholder, and service charges for additional/oversized/overweight baggage may apply. Applicable on flights that do not already offer a complimentary first checked bag. To access this benefit, the Primary Cardholder may be required to show their TD Aeroplan Visa Infinite Privilege Card to the Air Canada agent. Please allow two (2) weeks from receiving your Card for these Air Canada benefits to be activated.Air Canada Benefit Eligibility – Air Canada Maple Leaf Lounge One-Time Guest Access Benefit : With the TD Aeroplan Visa Infinite Privilege Card, the Primary Cardholder will receive four Air Canada Maple Leaf Lounge™ One-Time Guest Access Benefits once every calendar year (January 1 - December 31). The Primary Cardholder may access an Air Canada Maple Leaf Lounge™, where available, upon presentation of an active TD Aeroplan Visa Infinite Privilege Card with a valid, same-day boarding pass for travel using an Aeroplan Flight Reward, only, on flights operated by Air Canada, Air Canada Rouge or under the Air Canada Express banner. To access this benefit, the Primary Cardholder must redeem their Aeroplan Flight Reward (defined as Fixed Mileage Flight Rewards® or Market Fare Flight Rewards®) with miles from their Aeroplan account. Each Air Canada Maple Leaf Lounge One-Time Guest Access Benefit applies for a single entry during the calendar year for which it was provided by the Primary Cardholder only and cannot be carried forward to the next calendar year. As of November 2, 2015, Air Canada Maple Leaf Lounge One-Time Guest Access Benefits associated with the TD Aeroplan Visa Infinite Privilege Card may be used by a traveling companion, pending space availability, provided that the companion is booked on the same reservation as the eligible Primary Cardholder. Only applicable if the companion ticket is also redeemed using miles from the eligible Primary Cardholder’s Aeroplan account. Companion must be accompanied by the eligible Primary Cardholder who is using a One-Time Guest Access Benefit to access the same Air Canada Maple Leaf Lounge. The One-Time Guest Access Benefit may be extended to more than one companion at any given time, pending space availability, provided that the conditions above are met and that this does not exceed the maximum annual allotment of One-Time Guest Access Benefits. Additional conditions may apply and are outlined on aircanada.com/tdbenefits. Air Canada Maple Leaf Lounge access is subject to availability and all other terms and conditions located here that are subject to change at Air Canada’s sole discretion from time to time. Please allow two (2) weeks from receiving your Card for these Air Canada benefits to be in effect.Air Canada® Benefit Eligibility – 50% Discount on Companion Ticket : Upon the purchase from Air Canada of two (2) eligible Business Class (Flexible) fares for the Primary Cardholder and a companion (booking classes J, C, and D only) on tickets entirely operated by Air Canada or under the Air Canada Express banner, the Primary Cardholder will be eligible for a 50% discount on the companion ticket. Flights operated by other airlines, including Air Canada-marketed codeshare flights are not eligible. The 50% discount only applies on the published fare, and will not apply to any additional taxes, fees, charges or surcharges. This offer is available once every calendar year (January 1 – December 31) to each Primary Cardholder. The Primary Cardholder can only access the 50% discount each year when booking online at aircanada.com using that year’s promotional code. All travel must be completed by December 31 of the following year. Offer also applies to select Premium rouge bookings, where booking classes J, C, or D are available, on flights operated by Air Canada rouge to select destinations in Canada, the United States, or the Caribbean. Should you require assistance completing your 50% discount during your online booking, please contact Air Canada at 1-888-247-2262. Offer is non-transferable, and the companion Business Class ticket must be booked on the same reservation as the eligible Business Class (Flexible) booking by the Primary Cardholder. Please note that promotional codes apply to undiscounted published fares. Some of our previously discounted fares, while not eligible for the promotion, may be lower than the final price of the undiscounted fare to which the promotion applies.4 You must be an eligible Visa Infinite Privilege cardholder with a valid Visa Infinite Privilege Card to take advantage of the Visa Infinite Privilege benefits and services. Certain benefits and services require enrolment. Offers and benefits are non-transferable and discounts cannot be combined with any other offer or discount. Neither Visa nor the Issuer of the card is responsible for any claims or damages arising from use of any benefits or services provided by a third party. Visa reserves the right to modify or cancel offers or benefits at any time and without notice. All offers, benefits and services made available through Visa are subject to complete terms and conditions, including third party suppliers’ terms and conditions (available at www.visainfinite.ca/privilege/terms.jsp). The Visa Infinite Privilege privacy policy (available at www.visainfinite.ca/privilege/privacy.jsp) applies to all benefits and services that require enrolment through, or are otherwise provided by, the Visa Infinite Privilege Concierge or the Visa Infinite Privilege website. The collection, use and disclosure of cardholders’ personal information by third party suppliers of services and benefits to Visa Infinite Privilege cardholders are subject to such third parties’ own privacy policies.5 1.5 Bonus Aeroplan Miles (“Bonus Rate”) are earned on each $1.00 in Purchases of gas, groceries or drugstore products/services charged to your TD Aeroplan Visa Infinite Privilege Card Account (“Account”). This Bonus Rate is also earned on each $1.00 in Purchases from Air Canada charged to your Account for products and services completed online at aircanada.com, in-person at an Air Canada customer service counter at the airport or aboard an Air Canada flight. Excluded from the Bonus Rate are Air Canada Vacations packages, car rentals, hotel bookings, and other third party partner products and services that can be purchased through aircanada.com. Any returned items, refunds, rebates or other similar credits will reduce or cancel the Aeroplan Miles earned on the original Purchase. To earn this Bonus Rate, Purchases of gas, groceries, drugstore products/services and Air Canada Purchases must be made at merchants classified through the Visa* network with a Merchant Category Code (“MCC”) that identifies them in the “gas”, “grocery”, “drugstore” or “Air Canada” category. Some merchants may sell gas, groceries or drugstore products/services or Air Canada products/services, or have separate merchants located on their premises that also sell gas, groceries or drugstore products/services or Air Canada products/services, but may not be classified with a gas, grocery, drugstore or Air Canada MCC and such Purchases will not earn this Bonus Rate. If you have questions about the MCC that applies to a Purchase, contact TD at 1-800-983-8472. Bonus Rate is only available on the first $100,000 in net annual Purchases of gas, groceries, drugstore products/services and Air Canada Purchases made from January 1 to December 31 each year on your Account. Once the maximum net annual amount has been reached, Purchases of gas, groceries, drugstore products/services or Air Canada Purchases on the Account will not earn the Bonus Rate but will only earn Aeroplan Miles at the standard rate that applies to all other Purchases on the Account. This Bonus Rate offer is in place of, and not in addition to, the standard rate earned on all other Purchases made on your Account. Offer may be changed, withdrawn or extended at any time and cannot be combined with any other offer.6 1.25 Aeroplan Miles are earned on each $1.00 in Purchases charged to your TD Aeroplan Credit Card Account (“Account”). Credit for returned items, refunds, rebates or other similar credits will reduce or cancel the Aeroplan Miles earned by the amount originally charged to your Account. Fees, Cash Advances (including Balance Transfers, Cash-Like Transactions and TD Visa Cheques), interest charges, optional services, refunds, rebates or other similar credits do not earn Aeroplan Miles. Please see the Aeroplan Terms for Your TD Credit Card section of the Cardholder Agreement for complete details on Aeroplan Miles earned on Purchases (a copy of your Cardholder Agreement is available at http://www.tdcanadatrust.com/tdvisa/agreements ).7 The Toronto-Dominion Bank is not responsible for any Aeroplan Miles under this “earn miles twice” feature of the Aeroplan Program when the Aeroplan Membership Card is presented. See your Aeroplan Program for full details. Feature may be changed, withdrawn or extended at any time and cannot be combined with any other offer.For full details on hotel accommodation and car rental booked with Aeroplan Travel Services, please visit aeroplan.com.All trade-marks are the property of their respective owners.* Trademark of Visa Int., used under license.TM Air Canada Maple Leaf Lounge is a trademark of Air Canada, used under license.® Air Canada, Air Canada Express, Air Canada Rouge and the Air Canada Maple Leaf logo are registered trademarks of Air Canada, used under license.® Air Canada is a registered trademark of Air Canada, used under license.® Fixed Mileage Flight Rewards and Market Fare Flight Rewards are registered trademarks of Aimia Canada Inc.Aeroplan® and the Aeroplan logo are registered trademarks of Aeroplan Inc.The TD logo and other trade-marks are the property of The Toronto-Dominion Bank.
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With the TD® Aeroplan® Visa* Infinite Privilege* Card, you can earn up to 100,000 Aeroplan points† with a tiered welcome offer.
This card also offers premium travel benefits, including:
A partial rebate on NEXUS program application fees (up to $100 CAD per eligible cardholder) every 48 months†
Unlimited access to Air Canada Maple Leaf Lounges†, with complimentary access for one guest
6 complimentary visits per year to select international airport lounges through the Visa Airport Companion Program† presented by DragonPass International Ltd.
First checked bag free for you and up to 8 travel companions on the same reservation when travel begins with an Air Canada flight†
With the TD® Aeroplan® Visa* Infinite Privilege* Card, you earn:
Earn 2 points† for every $1 spent on eligible purchases made direct through Air Canada® purchases (including Air Canada Vacations®)
1.5 points† per dollar on eligible purchases of gas, electric vehicle charging, groceries, travel, public transit and dining
1.25 points† per dollar on all other eligible purchases
Annual fee
Primary card$599
Additional card$199
Annual income required
Individual$150,000
Household$200,000
Conversion fees
2.5%
Earning rate
2xAir Canada flights
1.5xRestaurants
1.5xGroceries
1.5xTravel
1.5xTransit
1.5xGas & EV
1.25xAll spending
Value
1st Year Value$2,334
2nd Year Value$461
Card benefits
Concierge service24/7
Airport lounge access$400
Travel insurance
Travel medical (under 55)Up to $5,000,000 / 31 days
$859ⓘMilesopedia first-year estimateFirst-year valueWelcome bonus$720Annual fee rebated$139Total$859Rewards on your spending are not included. The calculator that adds them from your own profile is on the card's page.
Milesopedia first-year estimateⓘFirst-year valueWelcome bonus$720Annual fee rebated$139Total$859Rewards on your spending are not included. The calculator that adds them from your own profile is on the card's page.
The CIBC Aventura® Visa Infinite* Card is one of the best Visa credit cards with travel rewards.
With this offer, get up to $1,900 in value, including a first-year annual fee rebate.
CIBC has an offer with which you can earn up to 60,000 Aventura points:
15,000 Aventura Points when you make your first purchase†
30,000 Aventura Points if you spend $3,000 or more in the first 4 monthly statement periods†
15,000 Aventura Points if you have at least $5,000 in net purchases posted to your account in the first 4 monthly statement periods†
In addition, you can benefit from a rebate on the first year’s annual fee for the primary card holder ($139 value) and up to three authorized users ($50 each).
With this CIBC Aventura Credit Card, you get:
2 points for every $1 spent on travel purchased through the CIBC Rewards Centre†
1.5 points for every $1 spent at eligible gas stations, EV charging, grocery stores and drug stores†
1 point for every $1 spent on all other purchases†
The CIBC Aventura® Visa Infinite* Card also offers:
Airport lounges access: Visa Airport Companion Program membership with 4 complimentary visits
Reimbursement of NEXUS membership fees ( $160 value)
A free Skip+ membership (a $110 first-year value)
The minimum annual income required for this card is $60,000 (personal) or $100,000 (household).
Legal
This is an exclusive digital offer†. To be eligible for this offer: 1) this offer must have been directly communicated to you from CIBC or from a partner or affiliate; 2) you must apply for the eligible card through the link provided in the CIBC or partner/affiliate communication to you†.
This offer is reserved for you. Please do not forward it to anyone else. CIBC may approve your application, but you are not eligible to receive this Offer if you have opened, transferred or cancelled another Aventura card within the last 12 months.†
† Conditions apply. To learn more, select the Apply Now option.
Annual fee
Primary card$139
Additional card$50
Annual income required
Individual$60,000
Household$100,000
Conversion fees
2.5%
Earning rate
1.5xGroceries
1.5xGas & EV
1.5xPharmacy
1xAll spending
Value
1st Year Value$1,148
2nd Year Value$359
Card benefits
Airport lounge access$160
Travel insurance
Travel medical (under 55)Up to $5,000,000 / 15 days
Travel medical (55-64)Up to $5,000,000 / 15 days
Travel medical (65+)Up to $5,000,000 / 3 days
Trip CancellationUp to $1,500
Trip InterruptionUp to $2,000
Delayed BaggageUp to $500
Lost BaggageUp to $500
Flight DelayUp to $500
Hotel BurglaryUp to $2,500
Travel AccidentUp to $500,000
Purchase protection
Purchase ProtectionIncluded
Extended Warranty+1 years
Mobile DeviceUp to $1,000 / 1 years
Auto Rental CollisionUp to $65,000 / 48 days
The possibilities: 50 shades of FIRE… or almost
The FIRE movement has several variants. Here’s a brief overview of the six primary alignments of this movement.
1. FIRE
This is the basic Fire movement. We’re talking here about individuals and couples who estimate their annual retirement expenses at between $20,000 and $70,000. The amount required for early retirement is calculated by multiplying the estimated annual expenses by 25. The result will be the amount needed for an early retirement. Thus, an individual estimating annual retirement expenses at $50,000 will need to save $1,250,000 (50,000 X 25).
Most importantly, reaching this financial milestone is achieved by increasing revenues, optimizing expenses and taking advantage of compound interest on investments. However, this achievement does not mean retirement for all. Indeed, many people continue to work after achieving financial independence. However, they do so on their terms and for interest rather than capital gain. It’s work by choice, not by social diktat or obligation.
2. Fat FIRE
This other shade of FIRE applies to all individuals and couples who estimate their annual retirement expenses at over $70,000. While a philosophy of frugality and thrift generally marks the FIRE movement, this is not true for “Fat Fire.” The mentality behind this movement is to have a considerable amount of savings to consume without depriving oneself and to have infinite freedom of choice when carrying out one’s daily activities. Funnily enough, there is also an “Obese FIRE,” which includes annual expenses over $100,000.
3. Lean FIRE
This is a movement that advocates a minimalist lifestyle with no extra spending. The annual expenses targeted for retirement are less than $20,000. Individuals in this movement seek a simple life, rich in meaning, with no unnecessary material attachments.
4. Barista FIRE
This sub-category of the FIRE movement is centred around a hybrid strategy of paying annual expenses. Annual expenses are partly covered by the individual’s savings (and subsequent compound interest) and by the income generated by a part-time job. For example, a person wanting $50,000 a year could withdraw $25,000 from personal savings and work part-time, earning a net income of $25,000.
5. Coast FIRE
This strategy is derived from the “Barista FIRE” and advocates massive savings at an early age. These massive savings will mean you won’t have to save for the rest of your life, and you’ll live solely on the compound interest generated by your savings. Calculating the amount needed to achieve Coast FIRE is a little complex. Here’s a calculator to help you visualize how much you’ll need to reach your Coast FIRE goal.
6. FIWOOT
This acronym stands for “Financial independence, working on your own terms.” As the name suggests, it’s all about achieving financial independence as quickly as possible, and then working in a rewarding job without worrying about the material benefits it brings. The creator of this term, Mark Seed, decided to quit his long-time job to devote himself to writing his blog and start his own business, a dream he’d had for a long time. Since then, he has only accepted contracts that genuinely interest him.
Bottom line
All in all, this article is intended as a brief overview of the FIRE movement, exploring its origins, basic concepts, components and aims. If you’d like to learn more about this movement, here’s a list of resources to help you delve deeper into the concepts explored in this article. Enjoy your reading!
$990ⓘMilesopedia first-year estimateFirst-year valueWelcome bonus$990Total$990Rewards on your spending are not included. The calculator that adds them from your own profile is on the card's page.
Milesopedia first-year estimateⓘFirst-year valueWelcome bonus$990Total$990Rewards on your spending are not included. The calculator that adds them from your own profile is on the card's page.
Apply with confidence — no impact on your credit scoreⓘApply with confidenceCheck whether your application will be approved before you submit it, with no impact on your credit score*When you apply for a personal American Express Credit Card, we will tell you whether you are eligible without affecting your credit score. So you can apply with confidence.*Instant decisions are only available for consumer Card applications (also called “personal Cards”).
The Marriott Bonvoy® American Express®* Card is the best credit card in Canada for free hotel nights.
New Cardmembers can earn up to 110,000 Marriott Bonvoy® points with the current offer:
Earn 80,000 points after you spend $6,000 on your Card in your first 6 months of Cardmembership.
Plus, earn 30,000 points by making a purchase during your 15th month of Cardmembership.
This offer ends on September 22, 2026. The annual fee is $120, and there is no annual fee on Additional Cards, so you can add a partner or a family member at no extra cost.
Every year after your first Card anniversary, you receive an Annual Free Night Award good for a redemption of up to 35,000 points at eligible hotels and resorts worldwide. At a valuation of 0.9 cents per Marriott Bonvoy point, that certificate is worth roughly $315, which on its own more than covers the $120 annual fee. That is the main reason to keep this Card year after year instead of cancelling it.
To get the most out of the certificate, aim it at a night that would otherwise price close to the 35,000 point ceiling.
The Card also gives you 15 Elite Night Credits each calendar year and automatic Marriott Bonvoy Silver Elite status. Those credits count toward the next Elite tier, so you begin every year 15 nights ahead of where you would otherwise start.
You move up to Gold Elite status automatically when you reach $30,000 in purchases on the Card in a year, or when you combine 10 qualifying paid nights within one calendar year with the 15 Elite Night Credits from your Card.
Marriott Bonvoy points are generally valued at 0.9 cents each. On that basis, the 110,000 point welcome offer is worth about $990, and an Annual Free Night Award used at its full 35,000 point ceiling is worth about $315.
Marriott Bonvoy points pull their weight on free nights rather than on gift cards or merchandise, which is why this Card should be judged on the hotel stays it produces.
You earn 5 points per dollar on eligible purchases at participating Marriott Bonvoy hotels and 2 points per dollar on all other purchases. Points can be redeemed for free nights with no blackout dates at more than 7,000 hotels around the world.
The Card carries a solid package of coverages: $500,000 travel accident insurance, flight delay, baggage delay, lost or stolen baggage and hotel or motel burglary at $500 each, car rental theft and damage up to $85,000 for rentals of up to 48 days, Purchase Protection for 90 days and a one year Extended Warranty.
Two things to plan around: the 2.5% foreign transaction fee on purchases made in a foreign currency, and the 21.99% purchase interest rate, which makes this a Card to pay in full every month. Like all American Express Canada Cards, no minimum income is published for this Card, and you can see whether you would be approved before you apply, with no impact on your credit score.
Legal
American Express is not responsible for maintaining or monitoring the accuracy of information on this website. For full details and current product information, click the Apply Now link. If you apply and get approved for an American Express Card, we may receive compensation from American Express, which can be in the form of monetary payment.
Annual fee
Primary card$120
Additional card$0
Annual income required
Individual$0
Household$0
Conversion fees
2.5%
Earning rate
5xMarriott Bonvoy hotels
2xAll spending
Value
1st Year Value$1,437
2nd Year Value$312
Travel insurance
Delayed BaggageUp to $500
Lost BaggageUp to $500
Flight DelayUp to $500
Hotel BurglaryUp to $500
Travel AccidentUp to $500,000
Purchase protection
Purchase ProtectionIncluded
Extended Warranty+1 years
Auto Rental Collision (primary)Up to $85,000 / 48 days
Our editorial integrity
Our reviews and rankings are based on an objective assessment. Advertisers do not influence our content. We may receive compensation through some links; our analysis and opinions remain independent.
