Other Considerations
When considering an early retirement package, there are a number of other factors that you should consider.
The first thing that you will want to do is to ensure that you have the cash flow to support your lifestyle.
Cash Flow Concerns
If you are not ready to retire, the cash flow that you receive combined with the other assets that you have, will have to provide you with sufficient income until you are re-employed.
The main issue to consider is not to underestimate the time required to find a new job. It's not uncommon to take 6 months to one year to find suitable employment. Starting a new business and achieving a positive cash flow can take even longer.
Another factor to consider is your registered and non-registered funds. Generally, you should utilize your non-registered funds first and allow your registered assets (RRSPs) to continue to grow tax-free.
However, you may want to invest a portion of your registered funds in a manner that will allow liquidity, so that these funds can be easily accessed should the need arise.
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