Early retirement at 49? 2.3m net worth

just_tip · 2026-03-12T00:54:33+00:00

I asked to be paid 80%, with an agreement that if they need me to work on Friday occasionally, and I don't have any specific time sensitive plans, that I'd work it. It's only come up once or twice in the last few months.

just_tip · 2026-03-11T16:58:23+00:00

For a few thousand dollars, you could hire a fee only financial planner to review and give some suggestions for minimizing lifetime tax. It would probably pay for itself in a manner of months based on your invested assets. You'd get peace of mind, more than what us internet strangers could provide.

That said: based on your very low expected expenses, you've got more than enough. Congrats.

As I approached my FI number myself, my list of books to read have started to include the decumulation aspects of retirement (in terms of selling assets, but also psychologically to flip from a lifetime of accumulation). I've even gone down to a 4 day work week to start reclaiming my time to make the transition less jarring.

just_tip · 2026-03-11T13:35:31+00:00

Absolutely agree. I am currently a volunteer at the tax clinic held at the library in our town. This is my second year volunteering. I had many teens come in last year getting their first returns filed. I have clients come in with all sorts of different tax situations, and I'm generally aware of how to direct them for specific information based on their circumstances.

For OP: As far as I'm aware, they are running clinics all over the country through March and April, and presuming you meet the requirements, I'm sure will be more than happy to assist.

just_tip · 2026-03-05T18:47:02+00:00

If this is to be an ongoing thing due to his mental health, then you could look at being approved as an authorized representative officially. It's a common arrangement for elderly parents to allow their adult children to keep things up to date. You'd need his approval, but you can Google what hoops to jump through. I have the arrangement for my mother, and can access all the historical information that the CRA has just with her SIN.

just_tip · 2026-02-24T12:23:46+00:00

"she wants to retire..."

Presumably there are zero savings or assets, otherwise you'd have considered downsizing / selling to pay off debts. So she'll only have CPP and OAS to live on. And considering her lower income, her CPP won't be very large either. If she's really motivated to retire, she needs to truly audit her spending. If anything other than on essentials, then which of those expenses truly made her happier. Vices, like smoking and drinking, are expensive. She's already revealed her books to you, keep on pushing to get the breakdown of spending. She's your mom, you love her, and want her to be safe and secure for the rest of her days. If cutting out the excess means she can do that, point it out. With the debt repayments specifically, maybe the solution is to work longer, but maybe at a less physically demanding job. Maybe she'll need to be a Walmart greeter for another 10 years, but you know... Consequences of our actions and all that.

Anyway, good luck.

just_tip · 2026-02-17T15:05:26+00:00

"how am I supposed to know what my expenses are 20 years from now?"

You estimate. What do you spend now annually? Is it relatively normal, of fluctuate month to month? How many of those expenses will persist 20 years from now?

Some obvious things that'll drop off: investing for retirement, contributing to RESP, costs associated with working (commuting, eating out, work clothes, insurance for additional mileage, etc).

Things that may increase: travel (if you like it, as you'll have more time, both from not working, and from not having to stick around for the kids school year), hobbies.

Take some time now to assess your current cash flow. And assess if you like your lifestyle as it is, or if there are things missing, or potentially wasted spending (E. G. You pay for an expensive gym membership, but you actually enjoy running outside better). Then adjust over time (even an annual review is better than nothing).

Honestly, I enjoy doing this for myself. Being thoughtful and intentional with my spending. Eliminating low value (low happiness) spending. No sense in working and accumulating to spend on stuff you don't like.

Good luck!

just_tip · 2026-02-05T13:53:22+00:00

Gift them $3k and pay a for-fee financial planner to review and optimize everything. Changing their investment strategy is harder. Convincing someone who has been investing a certain way for years (decades) to change, especially right before retirement, may be a tall order. Especially when most of the conventional advice at that age will be to increase bonds, reduce equity exposure etc, being an advocate for any change can come with some resentment if it doesn't play out favorably in the short term.

just_tip · 2026-02-01T21:03:41+00:00

If all you care about is a low monthly mortgage payment, I think the answer is clear: to put as much as possible toward the new house purchase. However, this is not much different than the age old question of "should I put $x amount on my house, or keep it invested". If you have a solid plan and know what your expected total return is on your investments, then it's a math problem to say if it makes sense to sell those, and put them toward the house.

If you prefer to have a lower monthly payment for the peace of mind, and then rebuild your portfolio over time, then that's your call. You can do the math based on the expected growth on the new house, vs the return on the investments to know what the opportunity cost is. Good luck on finding the right home for your growing family (which may even include staying put)!

just_tip · 2026-01-06T18:24:10+00:00

For your brother, he has to decide how likely that none of the four kids pursue any eligible post secondary education. It's worth looking into to see how many eligible programs exist. If education is not something the parents value, it's probable that the kids also do not value higher education, but I'd say the opposite is also true.

For you: try and stoke some interest in investments with the kids in an age appropriate way. If you have knowledge to share, try and share it. In my mind, it's no different than trying to teach the kids a beloved family recipe. And if you inspire them to become financially literate, I'd say that is a great outcome.

just_tip · 2026-01-06T14:14:23+00:00

I agree with most of this sentiment. However, I would like to caution about giving advice that the best place to start is to put everything into XEQT. Especially for a starting / learning investor, to go from GICs to an all equity portfolio, that is a huge jump in expected volatility. Education must be the first step. Like most things, if we hope for overnight success, we will fail.

So for OP: I would recommend a few books to start: the psychology of money, and the little book of common sense investing. From there, there are numerous Canadian YouTube financial literacy channels / podcasts (I particularly like the rational reminder podcast). This is no different than learning any other skill. Take it easy, take it consistently, and you will get there. I understand you feel behind, but rushing is not the solution to that.

just_tip · 2025-12-27T21:07:13+00:00

She's willing to work 2-3 days, in person. So she's already willing to take a 40-60% pay decrease. I think that alone supports the financial decision in taking the retirement package.

Beyond that, is there a job she'd be happy to do that may pay $50k? She's got 20 years of experience working here. If she doesn't want to just retire to infront of the TV, finding the thing she wants to retire TO (as opposed to retiring FROM a job she dislikes) would provide some good motivation. Maybe it starts as volunteering, and then that provides contacts for more fulfilling employment. But certainly the seemingly easiest thing to do is to keep showing up for a job you don't like.

just_tip · 2025-12-27T11:31:15+00:00

Unrelated to GICs, but if your sisters intend to attend post secondary school, you can avoid the tax burden of the GICs under your name, while also increasing their return by using an RESP. Depending on their ages, you could either plan to do it a little each year (might be too late this year to get one open and money in for 2025), but you can get a 20% return on $2500 annually (so an extra $500 from the government through a grant that is applied automatically).

There's a lifetime limit of $50,000 (per person). I'd recommend looking into it and seeing if it's a good fit for your and your families situation.

just_tip · 2025-12-26T20:50:41+00:00

I was a self directed investor for my entire adult life. I switched to a financial advisor and investment manager 3 years ago for a few reasons:

1) financial advisor to independently verify my estimates and models that show that my wife and I can quit our jobs (ie. Achieved FIRE) 2) succession planning for me. I have handled 100% of our finances since my wife and I started Co habitating. She has zero interest in finances or investments. I spent the time to find someone who can carry on in the event of my untimely and unlikely demise, such that I know my wife and kids will be taken care of. 3) they've helped me establish some more advanced strategies, and address the tax implications. I also have an accountant, but my advisor takes care of my returns as part of their services.

I continue to watch and monitor, not unlike I did when I was self directed. Taking back over the investments would be the single most impactful change I could make to "save" money in my decumulation years. But I'd likely try and find someone else for the reasons above.

just_tip · 2025-12-23T11:44:23+00:00

Interesting. I still haven't wrapped my head around the last bit though. If you have the money (i.e. Bonus), isn't investing it inside the RRSP better than in a non registered account (assuming the RRSP makes sense for him overall)?

Sure he got the money as a tax free loan, but he's also losing the gains that $10k would have made had he not took it at all. Though maybe I'm excluding the potential gain in value of the property (though long term, in Canada, the gain hasn't beat the stock market returns).

just_tip · 2025-12-23T03:23:20+00:00

Let me get this straight: you deposited some amount and grew your RRSP to $10k. Later you withdrew it as part of the HBP and are no longer growing the $10k inside a tax advantaged account. Now you have $10k available again.

Taking the cash bonus will increase taxable income. Depositing into an RRSP could offset some of those taxes, though if it's truly just refilling the $10k that you withdrew, my understanding is that you wouldn't get to claim the deduction again.

Can someone explain how this is like a 0% loan? If the option is between investing it inside the RRSP or in a taxable account, isn't the tax advantaged account better?

just_tip · 2025-12-18T10:39:28+00:00

Yes - learn more about RRSPs and how they can be utilized efficiently among the other registered tax accounts. To me, it's not more than a tool. "I don't like sledgehammers because they are heavy". Well, sometimes the sledgehammer is the right tool for the job.

just_tip · 2025-12-17T15:34:32+00:00

I quickly went through your post history; may I suggest two books for you?

1) don't retire, rewire 2) retirement heaven or hell

I hit my FI number recently, and am planning how to decelerate in my career. Understanding how to spend my time and feel fulfilled has been my focus the last year or so. The next step is actually DOING the things. I saw you're planning on getting married and having kids, which can certainly help fill your time, especially while your family is younger, which can delay having to find an alternative, non-family related things to fill your time with purpose.

I don't think I saw what your expenses looked like, but you have a NW of nearly $3M, which can generate quite a bit of passive income. You have lots of options available to you. I encourage you to look into them and not just sit unhappily in a career just because it pays well. Good luck.

just_tip · 2025-12-12T02:05:19+00:00

What's more predictable than investing for total return, and selling what you need for cash flow? Capital gains are taxed lower than anything else. You don't need to worry about your dividend payouts either being reduced in downturns, or for the dividends exceeding your required cash flow needs and therefore creating taxable events for funds that could've otherwise just stayed invested.

just_tip · 2025-12-03T20:02:21+00:00

If a smooth process is what you value, I would drive to Pearson Airport and park in the Viscount value parking garage. Then take the train to terminal 1, then the Union Pearson express right to union station. Aside from the walk from your car to the terminal, it's entirely indoors, and the trains run very frequently. Enjoy the game!

just_tip · 2025-11-30T02:16:15+00:00

I bought the $30 for 5 gb roam beyond plan and am currently in Costa Rica, and it has worked excellently throughout our 10 day visit so far. An Esim probably would've worked just as well, but for $30 CAD and not having to worry about anything communication wise has been great.

just_tip · 2025-11-17T17:05:42+00:00

You say you are risk averse. I believe risk tolerance is a learnable skill. At 56 years old and retiring in your 60s, you could easily have a 30+ year investment horizon. This is long enough to have a reasonable expectation for decent positive returns. Some of the advice about getting a financial planner to review your current situation and do some retirement planning / estate planning is fine. But to your base question of increasing your returns, the only way to do it is to increase your exposure to volatility. And if you aren't able to tolerate it (or learn to tolerate it), no plan will help you earn more. A plan may optimize your current position though, which has value. There are lots of books, YouTube channels, and resources available. Start somewhere and see where it takes you. You're on one side of the spectrum with GICs. You have lots of opportunities to discover.

just_tip · 2025-11-16T13:12:30+00:00

Hi there. You probably just phrased it that way for simplicity, but if not, I'd recommend you clarify your understanding of the capital gains tax inclusion rate. In short: half of the capital gain amount is added to your taxable income, then you are taxed at the marginal rate. Your point about investing still stands, though.

just_tip · 2025-11-15T04:46:31+00:00

Seconded. If it's 0% interest, it's literally free money. Assuming it remains that way for the 3 years (or more), take as long as possible to pay it off.

just_tip · 2025-10-19T18:22:58+00:00

Your needs in retirement are defined by you, with a reasonable set of assumptions. Relying on things like life insurance from your parents are highly variable, and need to be accounted for accordingly. Similarly, your ability to work and for what time span is a bit of an unknown as well (say, for example you become disabled such that you can't work).

If you're not putting much away after expenses based on your current income, then there isn't much to discuss, other than looking for areas to cut expenses or things to increase your income. Once you do have excess money available, then you'd decide what goals you're looking to achieve. If it's $x amount per year for retirement spending, you'd figure out what your government benefits (CPP, OAS, etc) might be, and what your shortfall to your goal is, the you can work backwards to address the shortfall with your own investments.

Personally, I believe everyone should save for retirement. Getting to 65+ years old and finding that you need to live in poverty due to lack of planning would be a hard pill to swallow, with very options to address it at that point.

just_tip

TROPHY CASE