The FIRE (Financial Independence, Retire Early) movement is a personal finance and lifestyle movement that advocates for extreme savings and investment strategies in order to achieve financial independence and retire at an earlier age than the traditional retirement age of 65.

The basic premise of the FIRE movement is to live frugally, save aggressively, and invest in income-generating assets such as stocks, real estate, and rental properties. The goal is to accumulate enough wealth and passive income streams to be able to retire early, typically in one’s 40s or 50s, while maintaining a comfortable lifestyle.

The FIRE movement has gained popularity in recent years, in part due to the rise of social media and online communities that share tips and strategies for achieving financial independence. However, the movement has also been subject to criticism for promoting a lifestyle that may not be feasible or desirable for everyone, as well as for its reliance on assumptions about investment returns and other factors that may not always be realistic.

Overall, the FIRE movement is a personal finance philosophy that emphasizes the importance of financial independence and early retirement, and encourages individuals to take control of their financial lives and plan for their future. Given the impact of the 2008 recession, the global pandemic and another recession on the horizon for 2023, it is unlikely that people will be able to retire for a long, long time. 

That is what is happening to one couple: they are having to work longer than anticipated to save up for their retirement:

Couple looking to retire will have to stick to “boring” jobs.

RRSP stands for Registered Retirement Savings Plan. It is a type of tax-advantaged investment account that is available to residents of Canada.

The purpose of an RRSP is to encourage individuals to save for their retirement by providing them with tax incentives. Contributions made to a retirement plan are tax-deductible, meaning that they can reduce an individual’s taxable income for the year in which they are made. Additionally, the investment earnings within an RRSP are not taxed until they are withdrawn, typically in retirement when the individual’s income and tax rate may be lower.

There are some limits and restrictions to RRSP contributions, including an annual contribution limit that is based on a percentage of an individual’s earned income, as well as a lifetime contribution limit. Additionally, there are rules around when and how RRSP withdrawals can be made, including penalties for early withdrawals.

 RRSPs are a popular retirement savings vehicle in Canada, and can be used to build a diversified investment portfolio that is tailored to an individual’s risk tolerance and financial goals. There are differences between how Boomers and Millennials will setup their retirement. Obviously, Millennials are in a precarious economic situation and may not always have the funds to assist in building up a “nest egg” for their retirement. The following article provides advice for both Boomers and Millennials, but fails to take into account the finances of many Millennials. Many Millennials struggle with saving any money at all, let alone investing in stocks or their retirement. The article does make an attempt at providing advice, however. You can read the advice provided below: 

 RRSP mistakes to avoid – particularly during market crashes.

The Canada Pension Plan (CPP) provides a number of benefits, the most significant of which is the retirement pension that forms an integral part of most Canadians’ financial plans for retirement. The Quebec Pension Plan (QPP) provides parallel benefits for Quebec residents. Every contributor to these government-sponsored pension plans will eventually need to make important decisions about when to begin receiving these valuable benefits.

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