While Warren Buffett is known as the Oracle of Omaha, investment whiz Derek Foster could be labelled the Wise Man of Wasaga Beach. That's because at the age of 34, Foster achieved a goal most Canadians spend their life chasing -- the dream of retirement.

Foster, now 35, lives entirely off his investment assets. He has a wife, two children and a four-bedroom home in Wasaga Beach.

Did he win a lottery or inherit a family fortune and parlay the windfall into a plump portfolio?

No. Foster simply started investing in his late teens, consistently socking money away even when he was in university, and carefully studying the stock market to avoid sinking his money into risky stocks such as Nortel and Bombardier.

The payoff is what he refers to as the ultimate perk, 52 weeks of annual vacation.

He has no boss or time clock. He simply cashes cheques generated by his dividend-heavy portfolio and a rental property and tackles a list of things he wants to do before he dies.

The list includes bungee jumping, climbing the Sydney Harbour Bridge, trying stand-up comedy for one night and going to a nude beach.

He believes more Canadians could be living this lifestyle (the nude beach is optional, of course) if they only shed some deeply ingrained misconceptions about investing.

He explains how to do that in a new book titled Stop Working: Here's How You Can! Buyers have snapped up 3,000 copies since the book's release in late February.

"I find people put the cart before the horse," Foster said. "Everybody's focusing on building up a nest egg. I only care about cash flow."

Conventional wisdom suggests the typical Canadian needs a $1-million portfolio to retire comfortably.

However, Foster gets by with a portfolio of less than $500,000, along with the income from a rental property.

His tax load is minimal since his portfolio income is based on dividend and income trust payments.

Defying traditional retirement planning rules, he doesn't own any bonds or guaranteed investment certificates.

"Tax-wise, they're really a hard hit," Foster said.

By focusing on buying recession-proof stocks that generate cash flow -- rather than obsessing about creating a $1-million portfolio -- Foster says he avoids sleepless nights.

"When you focus on the nest egg, you're really held captive to the stock market," Foster said. "You're a slave to the stock price."

By contrast, even if Royal Bank stock plummets in value, Foster knows his dividend cheques will keep rolling in.

He's very choosy about what stocks he holds and believes "90% of stocks are not worth any price."

Foster admits that an average Toronto family of four might have a hard time getting by on his investments, but living in Wasaga Beach provides him with both financial and leisure benefits.

"There's lots of fresh, open space and it's a good environment for my kids," Foster said. "And it's probably safer."

Ironically, Foster originally intended to be an accountant, but never entered the field after graduating with an honours bachelor of commerce degree.

In addition to his university degree, Foster also completed the Canadian Investment Funds Course but says he already had a good grasp of the material before he enrolled.

He's a devoted follower of Wealthy Barber author David Chilton, along with legendary investment gurus Warren Buffett and Peter Lynch.

"It's like a recipe," says Foster. "If you follow the proper steps, it works."

Here are Foster's nine rules of investing.

- Invest only in companies you understand.

- Invest only in companies that pay a dividend (preferably a rising dividend).

- Look for companies that are selling cheaply (the old adage of buy low, sell high).

- Invest in companies that are "recession-proof."

- Don't focus on foreign companies.

- Invest only in companies that are dominant in their industry (or that cannot be seriously hurt by a larger competitor).

- Invest only in companies that have displayed a long history of strong performance.

- Invest only in companies that have a strong brand loyalty among their customers.

- Once you've bought the perfect company, never sell it!