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Thread: Living On A Million Dollars

  1. #61
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    Quote Originally Posted by gibor365 View Post
    Out of curiousity, checked on remax some of this places + London. Guelph, Kingston..... holy sh*t, everything is soooo expensive .
    imho, the resonable prices are only in Maritimes and maybe some areas of AB
    We live close to Kingston. It is possible to buy a very nice home in an established area for under $400k (scroll down in the link) Even on waterfront for $800k (see one in link below). Some of the houses in new subdivisions (top of link) do seem to be over-priced.

    http://www.royallepage.ca/en/on/kingston/properties/2/


  2. #62
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    Quote Originally Posted by Karlhungus View Post
    Um SWR stands for Safe Withdrawal Rate. As in the safest amount you draw down. It is conservative already. Barely sustainable? You call a 95% success rate barely sustainable?
    SWR studies are based on historical data for a balanced low-cost portfolio. If future economic conditions are worse than those of the study period then withdrawal rates that succeeded in the past may not work in the future. 4% WR succeeded through the great depression, the dirty thirties and the stagflation of the 1970s. Nonetheless there was also some very strong market performance throughout that time period, especially the 1980s and 1990s. With today's high market valuations and low fixed income returns there is concern that past SWRs may not work in the future.

    So even retirees following an SWR method need to be vigilant about their spending rate, portfolio value and sustainability.
    Eschew obfuscation. Espouse elucidation

  3. #63
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    Quote Originally Posted by tygrus View Post
    I see more and more of these news stories about people who have got to a million either by extreme saving, maybe a house sale etc., then they quit work in their late 30s and say they are going to live on $40k per yr passive income forever. While am sure it can be done, $40k would be about the amount to rent or pay a mortgage, eat, utilities, bit of entertainment and thats about it afterwards, no account for inflation etc.

    While I am all for frugality, that seems not enough to rely on, especially if a family is in your future.
    I think you have to keep in mind that 40K in elegible dividends is more in your pocket than 40K in employment income. One might not pay any tax on 40K in dividends.
    We can not know things as they are in themselves, but only as they appear to us.

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  5. #64
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    Quote Originally Posted by agent99 View Post
    A lot depends on WHERE you live. I am sure there are people with a cabin in a remote part of BC that live on less. same would be in Newfoundland. But in Toronto, Vancouver or even other major cities?? Unless you are prepared to be a street person or something close.

    Someone metioned CPP/OAS. You won't get much of that at 30 something (or even later if you don't work)

    For a retired middle class couple with paid off home and full CPP/OAS living outside of major cities, a million might do it in todays $. They would have a total of about $65-$70k before tax if the money has wisely invested. But not if in GICs or the like.
    A favourate out of the way Ontario town is Owen Sound. Relativly nice town with cheap houses. A retired couple could still frequently visit TO area, check into motel, see hockey game, baseball, opera, symphony, grand kids....whatever...then go home to peace and quiet and watch the dividends roll in.
    We can not know things as they are in themselves, but only as they appear to us.

  6. #65
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    Perhaps one of the issues here is being alluded to by Pluto a couple of posts ago.

    Where is the million? Is it capital gain, distribution, or what? What is the tax rate on that income?

    One million dollars in dividends held in a non-registered account will spend a lot easier than having a million dollars in an rrsp.

  7. #66
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    You need to know yourself before you decide to worry about how/when to retire. Everybody is different.
    If you value work/career/golf and your life is complete being near friends & family there's no point to consider SWR or even RRSP contributions. I know many of my friends would drop dead if they stopped the 40 hour grind each week and are working happily into their 70's.

  8. #67
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    Quote Originally Posted by agent99 View Post
    We live close to Kingston. It is possible to buy a very nice home in an established area for under $400k (scroll down in the link) Even on waterfront for $800k (see one in link below). Some of the houses in new subdivisions (top of link) do seem to be over-priced.

    http://www.royallepage.ca/en/on/kingston/properties/2/
    Yeap, I took a look , not really familiar with Kingston and it's areas, but house similar to ours cost there $500-600K. Thus, after paying to laywer, realtor, moving cost etc... we won't have practically any profit from moving to Kingston

  9. #68
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    Quote Originally Posted by TomB19 View Post
    One million dollars in dividends held in a non-registered account will spend a lot easier than having a million dollars in an rrsp.
    True. I mentioned that to MOA in an earlier post when he was talking about $1million in a RRSP.

  10. #69
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    Very true, again, $1 M in RRSP vs. $1 M non-reg. Sake of argument this hypothetical $1 M is 1/3 in non-reg, TFSA and RRSP. I stand by my comment that 95% of Canadians (maybe not all CMFers! would have a very good retirement with that in the bank at age 60.
    Hidden Content - Working on a $1 million portfolio and $30k per year from it.

  11. #70
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    I'm really enjoying this thread. I'd love to cash out of GTA and move to somewhere lower cost. But, we have our kids here and their kids. Even though we could afford to fly business class with all the extra dough anytime we would like to, it just wouldn't be the same as being here.


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