Snowbirds, Seniors, and the Secret to Tax- Efficient Income: BTSX Style
15 years of Financial Planning and it still makes me want to puke.
Snowbirds, Seniors, and the Secret to Tax-Efficient Income: BTSX Style
“Gladys doesn’t track stocks. She tracks dividend payments — and the number of times her grandson asks to borrow money.”
She’s 72, lives in a bungalow with a paid-off mortgage, and owns more shares of Fortis than most financial advisors. She doesn’t know what a Bitcoin is, thinks “crypto” sounds like a cold medicine, and couldn’t care less about the TSX’s daily ups and downs.
But here’s the kicker: last year, she made more in dividends than her grandson made working full-time at a vape shop.
Gladys isn’t rich. She’s smart. She’s proof that a simple, boring portfolio of dividend stocks — the BTSX way — can quietly fund a worry-free retirement.
The Ugly Truth: Seniors Are Being Left Behind
Let’s get serious for a moment. Most seniors aren’t like Gladys
Seniors face:
Confusing financial advice laced with jargon
High-fee mutual funds with underperformance baked in
Robo-advisors that treat everyone like a 30-year-old
Lack of digital access or confidence
Dumped from advisors because no further money to be made.
And don’t even get me started on banks selling retirees into 3.0% GICs while their own shares yield 5.5%. Let alone the tax implications on their CPP and OAS.
Seniors aren’t just ignored — they’re underestimated. After 15 Years of Financial Planning and it still makes me want to puke.
BTSX flips the script. It’s transparent, proven, and doesn’t require a CFA, a subscription, or a daily check-in with BNN. Power to the cain walkers!
First, What the Heck is BTSX?
BTSX stands for “Beating the TSX,” a strategy that picks the top 10 or 20 highest-yielding stocks from the TSX 60 index, usually once per year. The idea is simple:
Buy big, boring, blue-chip Canadian stocks (think banks, utilities, pipelines).
Collect dividends like a squirrel hoards acorns.
Repeat.
It’s like picking a fantasy hockey team, except you get paid whether the market wins or loses.
Why BTSX Is Built for Seniors (and Wannabe Seniors Like Me)
Most Canadians reaching retirement aren't trying to 10x their money with crypto, junior mining stocks or growth stocks. It’s Not about Total Return. What majority, everyday Canadians need is:
Predictable monthly or quarterly income
Low volatility (no wild swings like a Leafs playoff run)
Inflation protected(*most important IMO)
Tax efficiency
Sleep-at-night factor
Keeping it Stupid Simple
BTSX-20 and a few ETF’s checks every box.
Tax Efficiency: Your Secret Weapon
Let’s break it down like a CRA agent with a calculator and no soul.
For Ontario seniors earning $50,000: To the Taxman coffers
Eligible Dividends 6%
Capital Gains 12%
Interest Income 20%
Yes, you read that right. Dividends from Canadian companies are taxed at HALF the rate of GIC interest. That’s like ordering a poutine and only being charged for the fries.
And if you're in the TFSA, it’s all tax-free. If you're in an RRIF, withdrawals are taxed — but the dividend income inside it keeps growing until you take it out.
Snowbird-Approved
Let’s face it: heading to Florida or Kelowna in the winter is way better when your portfolio is sending you quarterly cheques without you lifting a sun-spotted finger.
With BTSX stocks, you’re investing in oligopolies that practically mail you money every few months:
Banks: Too big to fail, too boring to ignore
Pipelines: Oil’s Uber
Telecoms: They make money..period
Utilities: Nobody’s cancelling electricity
These companies may not be exciting, but neither is a good pair of orthopedic shoes — and both get the job done.
A Sample BTSX-Inspired Monthly Income Portfolio
Let’s say you’ve got $500,000 invested in a mix of top BTSX-20 stocks with an average yield of 6%:
Annual Income: $30,000
Monthly Cash Flow: $2,500 (not including OAS or CPP)
Capital Left Untouched: Yup
This is not fantasy — this is what plenty of BTSX followers are doing right now. Many haven’t sold a share in years. They just live off the flow and occasionally complain about Rogers' customer service (which ironically pays them 5.5% per year).
Final Thoughts: Don’t Outlive Your Money — Make It Work for You
Whether you're:
A retiree trying to simplify,
A snowbird craving palm trees and pipeline payouts,
Estate aspiration
Worried about running out of capital
Elderly homecare concerns
Or just someone who likes getting paid to hold great companies.They are in the TSX60 for a reason!!!
BTSX is a strategy you don’t need a finance degree to follow.
It’s low maintenance, tax smart, and backed by real Canadian companies you already interact with. You’re essentially getting dividends from the very people who overcharge you for gas, banking fees, and your phone plan.
That’s not just investing.
That’s poetic justice.
Food For Thought: If you know a senior struggling with investing, getting no advice and/or completely getting ripped off from high fee’s, please forward this article. I am a retire designated financial planning and have helped 1000s of people achieve and maintain their goals. Most of my clients, oddly enough, were seniors, ost I still speak with to this day. I am more than happy to answer some questions.
Hi, where can I find an updated list of the tSX60 including the current dividend yield?
I tried to find but no luck.
I want to implement this strategy using current yields.
Thanks