How to Retire Early in Canada: How Stephanie Did It and Now Travels the World

When we first start our do-it-yourself investing journey here in Canada, almost all of our focus is understandably on the accumulation phase. We are diligently saving, maximizing our TFSA and RRSP contributions, and figuring out the right asset allocation of low-cost index ETFs to grow our wealth. But what happens when you actually hit your number? What happens the day after you reach financial independence, and you can finally quit your job to design the exact life you want? People often think that it is all pure bliss, but for many of us, a whole new wave of anxiety sets in. Suddenly, you are shifting from building your wealth to actually spending it. The fear of future stock market crashes becomes very real, and it can be surprisingly difficult to say "no" to extra work, or you might find yourself becoming overly frugal just in case something bad happens. In this episode, we are tackling this massive psychological and mathematical shift, and learning how my guest Stephanie and her wife Gillian tackled this challenge after retiring in their 30s and 40s here in Canada to travel the world. We discuss exactly how they did it, and how they manage their finances now to avoid running out of money while living off their portfolio. Here is a breakdown of what we tackle in this episode: Their Decumulation Blueprint: How Stephanie and Gillian structure their annual withdrawals so they can travel without the fear of running out of money. Protecting Against Market Crashes: We discuss using cash cushions, fixed income, and if they use any specific rules for when to sell equities to refill their cash buckets. Lifestyle Design and Overcoming Anxiety: We cover the psychological side of things. We explore how much is "enough", how they master the management of everyday cash flows while in retirement, and how you can actually find fulfillment once you no longer have a 9-to-5 job. In case you haven't heard of Stephanie and Gillian, they document their incredible early retirement journey and share practical financial lessons over on their website, OurFreedomYears.com, as well as on their popular YouTube channel, Our Freedom Years. They have a wealth of knowledge when it comes to the realities of living off a portfolio as Canadians, and I'm thrilled to have Stephanie on the show. Let's get into the interview.