Retiring Early in Canada | Court from Modern Fimily

In today's episode, you'll hear from Court who writes over at Modern FImily.

Court and her wife are (mostly) retiring early in Canada at 32, but will continue work a bit more until their second child is born.

They did this with student debt and a priority for living a full life while chasing their dreams.

Listen, learn, and let us know what you think.
Episode Summary
Discovering Financial Independence

Court had $70k of student debt after her bachelors and masters degree
* She'd start her career in 2009
* She was focused on getting out of debt
* Court paid it off in 2.5 years
* At this point, she looks to buy her first home
* She then also discovers Mr. Money Mustache

Starting a career

* She had the opportunity to participate in this rotational program
* It allowed her to rotate three times in six-month time segments across different jobs
* That gave her a wider view of options and allowed her to choose one right for her

Start of  a family

* She would meet her now wife in 2011
* Her wife would also end up with some student debt
* It was obvious right away that both were frugal and passionate about travel
* Court drove the spreadsheet part of the relationship but their goals align

Looking forward

* After getting married in 2015 they start designing their future
* Court's wife was originally from Canada and they set their sites there
* They would sell their home and all their things in Florida
* Then they traveled for 6 months before moving up to Calgary
* Court thought she'd a while to find a job and might travel another 6 months
* Luckily the job came through sooner
* Court was frugal but didn't have the investing background until finding the FI community
* They welcomed their first child in 2018 and are planning for a second

Canadian Perks

* Canada gives 18 months of paid time off for new parents
* This nets around $25k per year
* The insurance is incredible
* She tells a story of going to the emergency room with less than $20 out of pocket
* The medical bills for the birth of their child were limited to parking at the hospital
* Court got her citizenship through her dad but could have gotten it through her wife
* She also still gets U.S. perks like good travel rewards credit cards
* Canada also gives you around $5k per year for children up to 17 years old
* Canada will also give you $500 via match into an education saving plan
* They also have payments to citizens over the age of 65 that's based off income
* She also says that taxes are actually not that much higher than the USA

Looking Forward

* Court lays out her withdrawal plan for retirement
* She's moved to 60/40 stocks as she's about to stop working
* There is a plan to get back to 80/20 after a few years in retirement
* They plan to try and have a second child
* Court goes over some of the considerations for a lesbian couple having children
* They saved and planned for a 4% withdrawal rate
* They believe they can be happy with closer to a 2% withdrawal rate

 
Key Takeaways

* Better than expected: Court talks about how much faster FI came than expected
* Canada has perks: It's so important to enjoy the journey on your way to retirement
* Power in learning: Court wasn't from Canada but she's immersed herself to become an expert

Call to Action

Take a closer look at the fine print of your city/state/country programs an...