# Advice needed, thanks in advance.



## bluebird200 (Dec 18, 2017)

I'm 51 years old, senior executive of a global company. and my DW is 44 and work as part-time dental hygienist . We have two kids, 18 and 11. We are all Canadian citizens living in Florida. for various reasons especially my stressful job, we are think seriously going back somewhere in Ontario. I'd take an early retirement and DW will probably keep on working for 5 to 10 years more. Living in On we would save health insurance costs and private school of our young kid which combined exceed C$55k/yr.

Over the years we have lived well but still being able to accumulate a decent saving's nets due to my high income provided by my job. We intend to spend no more than C$1,3M to purchase a house and settle within 70 min of drive to Toronto, where we can find a quality school for our younger kid. Our elder kid will most likely finish university in Florida and the future expenses are already accounted and set aside for. To be conservative I'd like to exclude any CPP and OAS payments for future income considerations. All considered it would leave us with C$5.2M cash to invest and live on. I believe our living expenses will be around C$100K/yr. We also have C$800k in RRSP and 401K combined however we don't intend to draw before 67.

My DW will probably find a job as Dental Hygienist in On for C$60k a year, and it would help us in the next 5 to 10 years.

So my answer is do I have enough to execute early retirement plan if I chose to? I'd like to gain more confidence in my plan.

Any comments are welcome, thanks in advance.


----------



## james4beach (Nov 15, 2012)

I'm a site moderator and I'm sorry I didn't see your post earlier. First posts have to be manually approved and I did not see this one.

If you're living in Florida, then you're probably a "US Person" and you might want to consult with a cross border tax professional to get a sense of what your exit strategy from the US may be like. You're quite wealthy and I believe this can be a bit complicated. For example it may be useful to get a sense of what lingering tax liabilities you might have, to get a better idea of how much savings you're working with after taxes. If you're Canadian citizens, not US citizens or green card holders, then you have the luxury of being able to totally break free from the US so that you don't have to keep filing US taxes forever.

Let's say your $5M CAD figure is after taxes. As a rough estimate, once invested in a typical stock & bond allocation, you can withdraw 3.0% of the initial amount for the rest of your life. Starting with 5M, that would give you 150K every year, plus inflation adjustments. And that's not even counting your RRSP+401k.

I think it sounds like you'd be ok to retire now, but you should look into those tax issues.


----------



## Steve Divi (Jul 14, 2016)

Pull the plug, you're safe.


----------



## OnlyMyOpinion (Sep 1, 2013)

If she's working for the next 5-10 years, kids are in school, house (at $1.3MM) needs no renovations - do you have plans as to what you intend to do? Having an idea what you plan to do will help you and the family dynamics/expectations. Early retirement and a cross-border move at the same time are large events. 

You have enough to make it work, but make sure you have a FP and have run the numbers. Have a budget and review it annually. Have a diversified portfolio with an appropriate allocation to FI. $5-6MM seems like a lot but you are young, you are moving into an expensive house, spending an above-avg $100k/yr, have young kids (think cars and houses), and markets are testing new highs.


----------



## Daniel A. (Mar 20, 2011)

OP stated right at the beginning that they are Canadian citizens.

For sure talk with a tax professional maybe your current company has an international specialist.

You have more than enough to take control of your future, most people leaving work behind do come across future opportunities and jump back in project to project depending on age.


----------



## sags (May 15, 2010)

Yea sure..........another please help me with my millions post.


----------



## james4beach (Nov 15, 2012)

sags said:


> Yea sure..........another please help me with my millions post.


You think it might be a fake post? Fantasizing perhaps.


----------



## Just a Guy (Mar 27, 2012)

No, that's just a normal reaction from sags.

Realistically your success or failure depends on how you control your lifestyle. 5.2M really isn't a lot of money if you are used to spending freely. It's also hard to go from living large to maybe just living extravagantly, let alone living responsibility. 

Most people would look at you and think nothing could go wrong, but a lot of lottery winners end up broke because they can't handle their spending.


----------



## sags (May 15, 2010)

james4beach said:


> You think it might be a fake post? Fantasizing perhaps.


LOL..........I think it is unlikely someone acquiring $6 million dollars in assets by age 51 needs to ask for guidance from an internet forum.


----------



## marina628 (Dec 14, 2010)

About 4 years ago I sold my business and I found it valuable to hear different advise from you guys who i have been hanging out with for few years and have met many in person.At the end I am holding similar investments I had before the sale and didn't take much advise.I was also making some rookie mistakes before I came here as in holding us stocks in my TFSA and CAD in RRSP and aggressively paying off mortgages on rental properties instead of writing off the interest against income.Most people coming here regardless of net worth wants to learn themselves even if you are paying a financial advisor ,at least that is why I came here .


----------



## Just a Guy (Mar 27, 2012)

Just because you are good at making money, doesn't mean you are automatically good at managing money.


----------

