# Can a person retire at 47 witha 1 million dollar maintence trust and live overseas



## dkoch (Jul 7, 2012)

Hello,

I will be getting a inheritance maintenance trust of 1 million dollars plus 100,000 cash plus $110,000 from working cash. I have lived overseas in Cambodia for 5 years and traveled extensively throughout the area. I have a gf and live good on $1200/mo to $1500/mo USD (I am cheap but happy). Without the gf I could $800USD/mo with a OK quality of life. Average yearly living costs is about $25.000

I am 47 years old and retired. The trust is to be invested and I live off of the income. Every 5 years I can access to the 250,000 of the principle for a total of 20 years.

How much on average should I be able to make per month and how do taxes play into it. Do I have to pay taxes because I am a non-resident. I think on Capital Gains.

I was thinking $200,000 (the cash) @ $30,000/year for 7 years. Tax already paid on the money. 

Which will make me 54 years old and then 5 years will have gone by and I will have access to 250,000 of the principle. But the principal will have made money. So let's say things go up in price in 7 years to 40,000/year divided into 250,000 that should more then 5 years and take me to 59. Next 250,000 @ 50,000/year take me to around 65 years of age. 

Is my logic right and do I have enough? What is the best way to handle this? My concern foreign countries prices will go up to match the west over the rest of my life time. 

How can you make a logical calculation to figure out where I will stand at say 70 years old. Will this be enough?

I would start a business but there is a 99% chance you won't make any money and lose it all. I want to travel for the rest of my life. Which in Asia so far I am around 25000 a year.

Any advice would be greatly appreciated. I think I am going to be OK. Not an expert on this thou.

Thanks
D


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## peterk (May 16, 2010)

I'm not going to do the math for you..but yes, with your spending habits you can easily live off the money. $1m should be able to provide 40k before tax indefinitely when properly invested.


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## lonewolf (Jun 12, 2012)

Hi,dkoch

Based on info from the Pension puzzle book written in 2004

If you had 20yrs of Canadian residence since turning 18 or equivalant foreign credit. You will also get OAS full pension $5600. Which can be recieved outside of Canada when your old enough to qaulify.

If you worked in Canada & paid into CPP you also will recieve money from them CPP

You want to max out the TFSA, not sure how it works if you live outside Canada


Noone can know for certain if you will have enough money to retire for the rest of your life because of to many variables to predict. If things were to stay they are you most likely would but who knows how your investments will do. You could have money in GICs & the banks go bust, The goverment could go crazy with taxes & take your money in the form of sales tax or any type of tax. There could be a currency crissis & even those holding gold wont be safe because the goverment could confiscate the gold.

You say you have a girlfriend. You could marry & get divorced losing half. I know if I ever got married I would not want to bring to the table more money then the other party.


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## Sherlock (Apr 18, 2010)

I thought you only get OAS for 6 months after leaving Canada and then it stops? Or am I confusing it with GIS? Are you saying you can continue to collect OAS indefinitely if you live outside Canada?


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## Spudd (Oct 11, 2011)

According to the govt webpage you can collect it indefinitely. 

http://www.servicecanada.gc.ca/eng/isp/pub/oas/oas.shtml


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## MoneyGal (Apr 24, 2009)

Read down on that link. There are conditions you need to meet.


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## Sherlock (Apr 18, 2010)

Were those rules changed recently, because I'm pretty sure you couldn't collect OAS outside Canada before? A relative of mine wanted to move to Florida but it turned out that he needed to live in Canada for a certain minimum number of days out of the year in order to collect his pension otherwise his pension would be significantly reduced.


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## MoneyGal (Apr 24, 2009)

Rules haven't changed recently. Read the responses to questions 12 and 14 at the link provided. You can collect outside Canada if you meet the basic residency requirements.


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## OhGreatGuru (May 24, 2009)

Sherlock said:


> ...A relative of mine wanted to move to Florida but it turned out that he needed to live in Canada for a certain minimum number of days out of the year in order to collect his pension otherwise his pension would be significantly reduced.


OAS & GIS appear to be separate programs, but in fact are linked and the benefit level for OAS & GIS are subject to a combined limit. The GIS is reported in Box 21 - Net Federal Supplements - of the T4(OAS) So I would assume (don't know from experience) that OAS & GIS are paid in one combined cheque. The "significant reduction" in his "pension" was probably the cutting off of the GIS portion. (Don't you love it when govt. makes simple things complicated?)


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