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Clients, Financial Planning

What to Consider When Planning a Micro-retirement

by FLC
Mon, 18-August-2025

Younger generations are challenging the idea of a traditional retirement. Instead of waiting until the end of their careers to take time off, many are choosing to take intentional breaks between jobs or projects. A micro-retirement gives you the chance to reset, recharge, and rediscover what matters most to you.

However, stepping away from work takes planning. It is important to have a solid financial plan to cover your expenses and protect what you’re working hard to build.

The “why” before “how”

Before planning for a micro-retirement, take a moment to get clear on why you want to take this break. Understanding your “why” will help you set realistic goals and plan for your return to work. Not only will this help you understand what a successful break looks like for you, but it will also guide important decisions like how long you will be away, how much money you will need, and what insurance or coverage is necessary.

Having a clear plan based on your goals will give you peace of mind throughout your micro-retirement. It will also help you navigate unexpected roadblocks and keep your finances in order.

Things to consider before your micro-retirement

Regardless of what you want to achieve during your micro-retirement, there are a few key considerations to keep in mind for a successful break:

1. Build a dedicated savings plan

Set aside enough savings to cover your living expenses throughout your micro-retirement. Keep in mind that you might spend more money than you think as you have more time on your hands. It may also be helpful to include a buffer for unexpected costs to avoid financial stress.

2. Review your insurance needs

Leaving your job may mean losing your employee benefits. Make sure to review your current coverage and arrange replacements for health, dental, life, and disability insurance if needed.

If you plan to travel during your micro-retirement, remember to get travel insurance before you depart on your trip. This will protect you from emergency medical costs and other unexpected events that can quickly add up.

3. Understand the tax impact

If you expect little to no income during your micro-retirement, you may have opportunities to reduce your overall taxes. Consider contributing to your RRSP during high-income years to take advantage of tax deductions and withdraw your funds during lower-income years, such as micro-retirement to pay less tax on the money you take out.

Additionally, if you continue to earn some income through part-time or freelance work, it is important to understand which business deductions can apply to you and how this will affect your taxes. Planning ahead with a tax professional can help you make informed decisions during tax season.

Key Takeaways

Micro-retirements are challenging the idea of a traditional retirement. These six-to-twelve-month breaks offer many people the chance to step back and recharge in the middle of their careers.

However, it is important to understand your “why” and create a financial plan before taking a break. This will help prepare financial and insurance needs to ensure you are protected during your micro-retirement.

If you are considering a micro-retirement, we encourage you to connect with a financial advisor to help you develop a plan based on your situation and goals.

Financial Planning

Spring Cleaning Your Finances Checklist

by FLC
Tue, 1-April-2025

With spring in full bloom, it is the perfect time to refresh not only your home but also your finances.  Just as decluttering your home creates a more organized space, tidying up your finances can help you stay in control of your financial well-being.

Here are a few steps to help you get financially organized this spring.

1. Reassess Your Financial Plan and Goals

Whether it is saving for a major purchase, paying down debt, or growing your investments, take a moment to review your financial goals. If your priorities have shifted, now is a great time to adjust your financial plan.

2. Declutter Unnecessary Expenses

Review your bank statements for recurring subscriptions and service charges. Are there streaming services, gym memberships, or subscription boxes you rarely use or no longer need? Canceling or downgrading these expenses can help you streamline your finances and eliminate unnecessary costs.

3. Automate Your Savings and Payments

If you haven’t already, automating your savings and investments can help keep your finances on track with minimal effort. Set up automatic transfers to your TFSA, RRSP, FHSA, and high-interest savings accounts to ensure consistent contributions.

4. Review Your Insurance Coverage

Insurance protects your ability to earn and build wealth. Regularly reviewing your policies ensures your coverage aligns with your current financial and personal situation. You may also want to review and update your beneficiaries as needed.

5. Get Organized for Tax Season

With the tax season in full motion, now is the time to gather all necessary documents and review available tax credits and deductions. Staying organized can help you maximize your return and avoid last-minute stress.

5. Consult with Your Financial Advisor

Tidying up your finances can get overwhelming. If you are unsure where to start, consulting your financial advisor can help you optimize your long-term financial plan.

Keeping your finances in order not only provides greater control but also helps you navigate economic shifts with confidence. By regularly reassessing and managing your financial well-being, you become more intentional with your money, create more options, and empower yourself to make informed decisions.

Clients, Financial Planning

Tips to Achieve Your 2025 Financial New Year’s Resolution

by FLC
Fri, 17-January-2025

What are your financial goals for 2025? Whether it is building your savings, reducing debt, or investing for the future, having a financial plan is crucial. With January almost coming to an end, now is the perfect time to take control of your finances and set yourself up for a successful year.

Here are some tips to help you reach your financial goals:

1. Set Clear, Measurable Goals

Effective goal setting is essential for financial success, Using the SMART framework—Specific, Measurable, Achievable, Relevant, and Time-bound—ensures your goals are actionable.

Instead of, “I want to save more,” set a SMART goal of, “I will save $15,000 in my Tax-Free Savings Account (TFSA) by December 2025.” This will give you a clear target and a timeline to work towards.

2. Build a Spending Plan

Start with “why” before “how” by identifying what matters most to you. From here, an integrated spending plan will help you prioritize these goals and keep you accountable by measuring financial progress.

3. Tackle High-Interest Debt

Focus on eliminating high-interest debt, such as credit card balances, by using methods like the debt avalanche to target debts with the highest interest rates first, or the debt snowball to target paying off smaller balances first to build momentum.

4. Automate Savings and Investments

Automating your savings and investments ensures consistency without requiring constant effort. Set up automatic transfers to key accounts, such as TFSA, Registered Retirement Savings Plan (RRSP), First Home Savings Account (FHSA), and high-interest savings accounts. This habit will help you steadily build your wealth while minimizing impulse spending.

5. Monitor Progress and Stay Flexible

Schedule check-ins with yourself or a trusted professional to review your goals and progress, celebrate milestones, and make any necessary adjustments. Staying flexible allows you to adapt to changes in your financial situation and external market conditions.

Achieving financial success does not come overnight; it takes consistency and discipline. Remember, financial wellness is a journey, and every step forward counts.

For our valued clients, remember to schedule a check-in with your FLC Financial Advisor to discuss your goals in 2025 and as we enter RRSP and tax season.

Doctors

Get to Know Our Advisors: Jacob Chang

by FLC
Wed, 3-July-2024

Jacob Chang

Jacob is an Associate Advisor, who joined our team earlier last year, bringing 9 years of experience in the financial industry. He typically helps young individuals/families (25-45 years old) who are:
• Planning to buy their first or second house in Vancouver/Toronto
• Unsure how to optimize finances (especially with a spouse and/or incorporated business)
• Focused on raising their young children

What inspired you to become a financial advisor?

My dad died unexpectedly at age 55. Our family was financially and emotionally unprepared, and my mom and I had to learn very quickly. The fear of losing our home and the weight of responsibility was immense, especially with two minor siblings. Every small decision cost us thousands of dollars. Due to the severe stress and fatigue, my doctor diagnosed me with stress-related shingles at 17 years old.

Thankfully, we had several amazing advisors. I was surprised that, in just a single conversation, they could save our family huge amounts of money and countless hours of time, stress, and energy. Their guidance inspired me to become the kind of advisor that they were to my family.

Can you walk us through your journey and key moments that brought you to where you are now?

  • In 2015 I met Sunny Lam CFP,RFP and Ken Chong CPA,CA. They taught me to love investing. And to love insurance even more. And to love tax planning even more!
  • In 2016 I worked as a stock analyst for Lieh Wang CFA. He taught me how to invest objectively and wisely.
  • In 2017 I met Barry Hawn CPA,CA, Personal Finance Professor at Western University. He taught me the joys of teaching Personal Finance.
  • In 2019 I learned about value investing from Professor George Athanassakos, who learned from Warren Buffett.
  • In 2021 I met Ivan Chen CFP,CHS,CKA,CLU,EPC,CPCA,CEA,MFA-P. He taught me about Biblical Stewardship and taught me how to go above and beyond for clients. In 2021 I also lectured my first class at Simon Fraser University.
  • In 2023 I met Bobby Ning CFP,EPC and Alphil Guilaran. I am currently learning the nuances and complexities of financial planning for medical professionals, business owners, and Family Offices.

What is your favourite aspect of working with your clients?

My favourite aspect of work is simply meeting my clients and learning from each other.

If I wasn’t paid, I would still be doing this job.

Besides the paperwork, I rarely feel like I’m working… it just feels like I’m chatting with my friends all day!

Can you share a moment with a client that was particularly rewarding or meaningful to you?

One of my financial planning mentors was working with a client who had just entered a very tough financial situation. This situation resulted in them (the client) taking a job that required a 3-hour commute. After one of our meetings (and careful consideration), my mentor handed his car keys to the client and told them to keep it.

My mentor taught me that many assets are good investments, but the best investments are in people.

Every family should review their financial plans with a lawyer, accountant, and financial planner.

I cannot count the number of times my mentors and I have heard the words “I wish we met you earlier.”

A 20-minute conversation can save a person a lifetime of despair, grief, pain, and regret. A second opinion costs nothing, but ignorance could cost you everything.

What is one piece of financial advice you believe everyone should follow?

If you would like to learn more about working with Jacob, you can review his LinkedIn profile here. Think he is a good match for your situation? Let us know here!

The comments contained herein are a general discussion of certain issues intended as general information only and should not be relied upon as tax or legal advice. Please obtain independent professional advice, in the context of your particular circumstances. This article was written, designed and produced by Financial Literacy Counsel, a registered trade name with Investia Financial Services Inc., and does not necessarily reflect the opinion of Investia Financial Services Inc. The information contained in this article comes from sources we believe reliable, but we cannot guarantee its accuracy or reliability. The opinions expressed are based on an analysis and interpretation dating from the date of publication and are subject to change without notice. Furthermore, they do not constitute an offer or solicitation to buy or sell any securities.

Mutual Funds are offered through Investia Financial Services Inc. Commissions, trailing commissions, management fees and expenses all may be associated with mutual fund investments.  Please read the prospectus before investing. Mutual funds are not guaranteed, their values change frequently, and past performance may not be repeated.

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