🐣 Don’t Build the Wrong Thing: Why the Traditional Nest Egg Is a Retirement Trap

David LeBlanc
1 day ago
4 min read

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Hi again real money believer,

For decades, we’ve been told/brainwashed to: open a retirement account, work hard, save, use a financial "advisor", and let your money grow. Well, on paper I suppose it seems safe and responsible. Now, looking back I only see it as a huge retirement trap which can often leave many people asset rich but cash flow poor, constantly worried about whether they’ll have enough to retire, and unable to access their money along the way—or feeling like they have to work longer than they want.

The problem? A traditional nest egg is future wealth. Often it’s locked inside registered accounts (such as a RRSP) or tied up in investments that don’t produce regular income so selling means you're cracking your egg. So here my question to you:

What’s the point of building a large nest egg if you can’t access it when you need it?

If you do need income, you usually have to crack it open, triggering taxes (if inside a RRSP or non-registered account) and reducing your principal. This is a mistake I see far too often.

The New Reality: You’re On Your Own

In North America, company and government pensions—once a cornerstone of future retirement security—are largely becoming a benefit of the past. Many companies no longer offer traditional pension plans and government benefits are uncertain, and relying on them can limit your control and create stress and anxiety.

Often in fear due to lack of financial literacy and confdence, too many people also hand over control of their finances to so-called financial “advisors", but the truth is no one knows your needs, goals, and interests better than you. With a little learning and confidence and support from the right person, you can start to regain control of your finances and make your money work for you—not someone else.

The "Nest Egg" Trap 🐣

Growth-focused investors build wealth over time, but it’s often illiquid or only accessible at retirement. Even TFSAs, though tax-free on withdrawals, are frequently invested purely for growth. RRSP withdrawals trigger taxes, reducing the principal.

When cash is needed—for bills, emergencies, or opportunities—many feel trapped. Selling assets cracks the nest egg, reducing future security.

Why an Income Factory Can Make More Sense 🏭

Instead of focusing on growth alone, create your own income factory or personal pension plan.

An income-oriented portfolio focuses on cash flow first, producing steady, predictable income every month in any market—up, down, or flat. Whether you need the income today or not, it’s there if you want it.

One big advantage of income investing over growth is that it gives you options. Every month, you can choose what to do with the income your portfolio generates:

Reinvest to snowball your wealth
Spend some on an unplanned expense, a special purchase, or a trip
Purchase precious metals to protect and preserve your wealth

This flexibility allows you to enjoy life without cracking your principal. Growth investing, by contrast, often leaves you dependent on the market going up before you can access cash, creating stress and risk.

Whether you’re 25 or 45, it’s never too early—or too late—to start building your income factory. You don’t need 30 years to get where you want to go. Many people are already doing better than they realize—they may just have invested in the wrong things or focused on the wrong strategy.

Example: $100,000 TFSA Income Factory

Initial investment: $100,000 CAD in a TFSA
Monthly contribution: $500 CAD
Average annual yield: 20% (high-yield income ETFs)
Dividends: reinvested

After 15 years, this portfolio could grow to approximately $2.35 million CAD. At that point, the monthly dividend income could be roughly $39,000 per month—all tax-free inside the TFSA. Even better, you could use a portion of that monthly income to buy precious metals, effectively acquiring them for free while still enjoying your cash flow. Your portfolio keeps growing, generates income, and builds tangible, inflation-protected wealth simultaneously.

I think this example shows the power of an income factory of building steady, predictable cash flow in any market, flexibility and options every month—reinvest, spend, or protect your wealth, continued growth of principal while generating income, financial independence without relying on government benefits, pensions, or a single salary

Compare this to a traditional growth-only nest egg: you’d be relying solely on market appreciation, and any withdrawals could reduce your principal or trigger taxes. With an income factory, your money works for you every month, giving both income and freedom.

Income-oriented investing has greater potential to meet financial goals than growth-style strategies. You can enjoy more stability, independence, and peace of mind, without relying on jobs, side hustles, pensions, or government programs. You don’t need to work forever—you just need a plan that produces steady income and real wealth that actually progresses towards your goals insretad of hoping and praying you get there.