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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 and retirement options and consider what moving might look like.
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Learn more about Court
Via her website Modern FImily
Via her Instagram Modern Fimily
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