In the Globe and Mail

Hi everyone,

Well it took a while but the Globe and Mail just had a recent article on me and the entire idea of switching from saving for retirement to spending in retirement.  It turned out really nice so go have a read.

And to any new people on the site, please feel free to ask any questions on this post I will do my best to answer.

Take care,

Tim

9 thoughts on “In the Globe and Mail”

  1. Hi Tim,

    I recently stumbled on your website as I too am pursuing how to retire early. At least by 50 (already 44). I wish they had covered more on you in the article about your savings vs spending. A question I have: You and your wife both have more than the maximum cumulative total for TFSA ($57,500 max for 2018). Is this due to the interest you have earned which is then tax free? Or have you invested more willingly and then paying taxes on it? My husband and I are maxing out our TFSA’s now and I wondered what we would do once we hit the max. Thanks!

    Connie

  2. Thanks for stopping by Connie. Our TFSA balances are well over the contribution limit due to investment growth and dividends all of which is tax free when we decide to pull some out. Keep in mind we put in the max each year since they started and that is the investment returns for that entire time. Both accounts are invested in individual stocks since just putting the money in a interest paying account is a bit of waste of its potential. For additional information I suggest searching the site for “TFSA” and you will find out more on what we did. Good luck on your own early retirement!

  3. I think they misunderstand FIRE in some fairly significant ways. This quote is quite silly really:

    “Fixed expenses are perhaps the easiest to plan for [in retirement?], as they usually come up at regular intervals for a predetermined amount (mortgage, car payment, utilities and so on).”

    Because being FIRE usualy excludes all debt. Why not figure out food amd entertainment? Even in regular retirement at 65, they usually expect you to be out of debt.

  4. Hi Tim,

    I’m curious are you worried about health and dental care coverage that you no longer get after retiring? I assume you are paying out of pocket or are you on some personal insurance plans that would cover these?

    I’m 38 and have recently been laid off even though my boss knows that I am the primary caregiver for my mother who has stage 4 cancer and myself with some health issues. I will take a break from working as I’ve always wanted to retire in the 40’s.
    I’m kind of relieved now that I get a package and can spend more time with my mom. Financially I’m not worried but it does feel a bit weird to stop working at my age. =) I’m also a bit worried about the health and dental insurance coverage that I’m going to lose very soon.

    Cheers.

  5. @Lena – Most articles don’t have the word count to cover everything. So you get those summary statements that don’t get into detail.

  6. @Misuchiru – We looked at insurance coverage after I left work and in the end decided to just pay out of pocket. It’s a personal decision based on our typical costs per year and the family not having any outstanding health conditions. If you have health conditions that require up keep then yes you likely want some kind of coverage. The nice thing is lots of plans out there let you pick what you need and skip parts you don’t…for example, dental is often separate from general health coverage.

    Sorry to hear about your mom but glad you can spend time with her at the end. You don’t have to stop working forever you know. It is okay to pick up something part time down the road. For now, don’t feel guilty about not working…it will feel weird but that does pass in time. Best of luck on your new found freedom.

  7. Thanks Tim. I don’t have any immediate need for drug coverage, but might need it some time later for thyroid medication. My friend told me that Costco has pretty good plans if you are a member so I’ll just pay out of pocket for now (mostly just for dental cleaning) and will shop around if I need something later. If you have any recommendations would appreciate if you can share as well.

    I will probably return to work at some point in my life but I don’t know when. My mom retired at 65 and the same year she found out she has cancer, so to me the only reason I should go back to work again is if I really need the money. I’m really looking forward to spend more time with my mom because I know I will regret it if I don’t. I still have about a month left before my last day so my focus is already somewhere else now and I don’t even bother replying to emails at work. =)

    Your site is very informative. I’m curious on how you invest with your savings. I also have TFSA, RRSP and non-reg accounts but I left my Financial Planner at TD Bank tell me what to do with my money. I hope you can share some of the tips and tricks on investment. Thanks.

  8. Also, not sure if you have covered this in previous blogs but would you recommend people withdrawing from RRSP if they have no income for the year? I’m thinking to withdraw from my RRSP account (just under the deduction limit) so that I don’t have to pay tax on it and transfer that to TFSA or non-reg accounts. If this is not a good approach, how do you plan on withdrawing from RRSP and not pay the tax? Thanks.

  9. @Misuchiru – Ironically I don’t talk about my investments too much lately…they are more or less on auto pilot at this stage. As a brief overview, the RRSP are all index funds I use the ‘couch potato’ portfolio (Google that is you want to learn more). The TFSA and taxable accounts are in individual dividend paying stocks that mirror our house hold bills. Search the site for TFSA to learn more.

    As to your RRSP question, if you have no income in a year than yes take money out of your RRSP up to your basic deduction. It should end up being tax free after you file your taxes the following year (they will take some money off when you withdrawal the money as an estimate of taxes). Even if you don’t need the cash you can just move it over to the TFSA. I plan to do something similar myself later this year (in November when I can actually estimate any income I have for the year).

    Best of luck on your early retirement. Take care.

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