How to Retire Early: A 10-Year Plan

# How to Retire Early: A 10-Year Plan Retiring early is a dream for many Canadians, but it requires careful planning and discipline. In this comprehensive guide, we'll walk you through a proven 10-year roadmap to help you achieve financial independence. ## Setting Your Target The first step is determining your target retirement number. This is typically 25 times your annual spending. For example, if you spend $60,000 per year, you'd need approximately $1.5 million. ## Phase 1: Years 1-3 - Build Your Foundation During the first three years, focus on: - Maximizing your RRSP contributions ($31,560 limit for 2024) - Contributing to your TFSA ($7,000 annual limit) - Paying down high-interest debt - Building an emergency fund of 6-12 months expenses ## Phase 2: Years 4-7 - Accelerate Your Savings In this phase: - Increase investment contributions aggressively - Diversify your portfolio across stocks, bonds, and real estate - Consider tax-efficient strategies like income splitting - Review and optimize your investment allocation annually ## Phase 3: Years 8-10 - Fine-Tune and Prepare As you approach your goal: - Shift towards more conservative investments - Plan your retirement income strategy - Consider CPP and OAS claiming strategies - Prepare your retirement withdrawal plan ## Key Takeaways Early retirement is achievable with the right strategy and discipline. Start today, stay consistent, and adjust your plan as needed.