I am starting to like the idea of a mid career retirement.
It won't be easy to arrange but taking a year off at 35 or 40 sounds like a really solid plan. The beauty of it is that you should be able to pull money out of your RRSPs for very little tax because you won't have an income that year. If both of you put away $10 000 each a year extra into your RRSP for 5 years then you can take the tax breaks on the contribution each year to pay for a good chunk of that money. In five years you have an extra $100000 in your account that probably cost you $60 000 to put in after taxes. During your year of trial retirement you can each pull $50 000 out and pay taxes at a far lower rate and use the money to travel quite nicely or rent a spot on a ski hill for the winter. As long as you take the entire year off then the taxes owed is pretty minimal.
Unfortunately, it is tough to line up the time off but it can definitely be done and something that is on my mind.
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