# 46 only now learning. Need 10 year plan adivce



## Teraflops (Feb 10, 2016)

Hi everyone...need some advice and help,

To let you all know where I'm coming from... have worked for gov 8 years and at 45 started to think about retirement so started to save. Was planning on $12,000 but some unforeseen expenses caused me to only reach the $9000 for 2015. I just 'assumed' RRSP's were the way to go.. until I started to research them. Now I'm completely confused with all the variables and options and ridiculous bank fees surrounding them... and now, other saving options such as TFSA's.

My plan is 10 years of saving for retirement then retire at 55. I will have 17 years of pension at that point which I think will get me $1700 a month according to the online calculator for fed employees. I want to save as much money as I can to supplement my pension earnings and then leave the country at 55 to live someplace like Thailand or Cambodia where it takes far less money to live well... plus life will be an adventure and keep me active as i explore and learn a new culture and try to enjoy myself.

Tax bracket wise I am at 80g a year and I have 10 years to save. I can manage $1000 a month. I'd prefer very low risk considering the short time frame and the fact that I really cant risk the level of expected funds. I'm having a lot of trouble figuring out a game plan to try and have as much as possible when I am 55. 

I need advice and direction for a safe solid 10 year plan.

Thank you


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## Janus (Oct 23, 2013)

A bit of quick math...

You're 45 and appear to have no savings other than the $9000 you saved last year.
You want to retire at 55, in 10 years.
Assuming your income doesn't change much (an accurate assumption by the sounds of the government job) you'll likely save say $10,000 per year until retirement. 

So you'll have $100,000 at retirement (excluding large gains, but you don't want to take much risk it seems), plus your pension.

$100,000 invested in an income fund will get you something like $3,000 a year in income, or $250 a month. Add that to your $1700/month pension, and you've got just under $2,000 a month in income. That goes a long way in Cambodia, but doesn't give you a lot of wiggle room if you don't stay there or need to come back for medical care.

If I'm being totally honest you should have been saving your entire life, or at least since you turned 30. I hope you are ok with a $2,000 per month income for the rest of your life.


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## tygrus (Mar 13, 2012)

Being honest too.

You will need to stay in canada part time if you want to access medical care and cpp/oas one day and you are gonna need them.

45 is late to start and its hard to catch up. I think 60-65 is more realistic for you. You dont want to run out of money at 70.

You might even consider a part time side job or hustle to help you catch up and even something you can continue in your retirement to supplement.


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## Teraflops (Feb 10, 2016)

Thanks for the reply..

Being totally honest is fine... I wish I could have been saving from an earlier age but I havent. My life has been marred by alcoholism till 28, then what should have been 3 years of college that turned into 6 thanks to getting Leukemia in the middle that took 2 years to deal with and then had to return to college to start over from scratch because so much course content had changed. That got me to 37, hired full time with feds but saddled with debt from 6 years of school and a number of other issues that has prevented me from saving much till now.

So here I am... now 46 with 9000 savings and what will be 17 years of pension at 55.

My health is questionable and I dont want to be working when I die. I would rather have less money and get out and live.

Just trying to learn and understand what my options are and try to come up with a game plan.


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## tygrus (Mar 13, 2012)

I highly suggest you hang on to canadian health care and OAS/CPP with both hands.

You don't have time for an investment to grow so I would forget that. 

I would be scouring for some sort of sideline hustle.

If you have a residence, you can rent that while you are out of country for extra income.


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## Teraflops (Feb 10, 2016)

*1163*

Thanks for replies...

I will keep residency in Canada as well as passport and will only live in other countries on retirement visa's. I will also purchase health insurance pkg... they exist and are not overly expensive in many countries for retires that have moved to them.

I dont want to be working into my 60's as I dont trust my health. I need to work with what I got and make a game plan to save what I can and put it someplace that will benefit me the most.


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## Teraflops (Feb 10, 2016)

Didnt realize we can not edit posts here... unless I completely missed it.

Sorry about quick replies.. am busy but shift is over now.

So the plan is purchase health insurance pkg for doc visits and prescriptions etc... if anything worse goes down I will get on a plane and head home to Canada. I will keep my citizenship and also all my bank accounts and assets in Canada and only transfer what I need on a monthly basis to the personal account I will hold in whatever country I am in.

It's quite common for people from Australia and all over Europe to do this. Thailand is actually overrun with Australian retirees and many of them took early retirement. I'm not sure where I will end up in 9 years at 55 but it'll be somewhere.

Also.. I dont expect to have a lot of money... and I dont need a lot. I dont spend much on myself and I can easily save $1000 a month if not more... but $1000 is a safe estimate. So $12,000 a year is very doable.

I just need to understand what is best over 10 years... rrsp or a mix of tfsa and rrsp... or something else?


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## tygrus (Mar 13, 2012)

Teraflops said:


> I just need to understand what is best over 10 years... rrsp or a mix of tfsa and rrsp... or something else?


No stocks, none of those accounts. Save all you can straight cash into a HISA. Cross fingers.


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## OhGreatGuru (May 24, 2009)

Good that you are getting around to some long-term planning now that your life is in better order.

17 years' pension would be hard to retire on in Canada, without a significant change in life style. If accommodation is a significant part of your budget, you could look at cheaper places to live in retirement (in Canada) as a possibility.

Retirement to cheaper places abroad is being done by some, but I would not yet call it common. You have to look carefully at loss of health care coverage; reduction of OAS, no GIS (if applicable) There are threads here and other forums discussing this topic.

Being a member of a pension plan, you will not be accumulating a lot of RRSP room. More and more people are looking at TFSA's rather than RRSP's if they are not going to be in a lower tax bracket in retirement. On the face of it it looks like your retirement income will be lower. But if you move abroad CRA will withhold 25% tax on your pension payments and RRSP withdrawals, regardless of your income level. They call it Part XIII tax. I believe you have the option of filing tax returns with CRA if the 25% is too high. See CRA information for emigrants. 

You also better look carefully at the provincial residency rules for health care coverage - it's not as simple as "hopping on a plane and coming back" in an emergency once your coverage has lapsed. Eligibility for coverage is not based on citizenship - it's based on residency for specific periods of time in a calendar year.

PS: with only 17 years service, are you sure you can retire at 55 without a significant financial penalty on your pension?

PPS: As you are in federal (government?) pension, I've done a quick calc. and it appears that your estimate of $1700/mo. does include the penalty. You should look carefully at whether your goal should be 60 instead, though, because each year between 55 and 60 is costing you a 5% penalty.


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## Afp (Mar 19, 2013)

Honestly, I personally think Teraflops is fine and he is on track to retire at 55. If he can follow Mr Money Mustache advice and lifestyle, he can pull the plug in 5 years. If you follow this forum, you might already know him. If not, a quick Google search will get you to his site.

From reading your post, I assume you're single and renting. Thus, you are in totally control of where you live and how you spend your money. You can find a place closer to work to get rid of your car to save an additional 10k per year. This one single move already double your saving rate. Anyhow, for a single man with 80k income + nice DB pension without mortgage, you can save a lot of money if you are willing to make hard choices.

If I am not mistaken, Teraflops is asking for investment advice. Max out your TFSA first, set this your 1st priority. Unlike RRSP when you take the money out, which you will soon enough, it is taxable income. TFSA is a bride for vote from our government to the prudent and financial responsible little potatoes like us. Take advantage of it while you can. Open a self-direct brokerage account with the financial institution where you currently do banking with. Remember the keyword "Self-Direct" because when you walk into the branch, they will try to lure you into buying mutual fund instead.

Use this TFSA fund ( be it $ 9,000, $12,000 or $500 ) to buy high quality dividend growth paying stocks. What are they, to name a few: Royal Bank, Toronto Dominion, Enbridge, Metro, Telus, Bell, CN Rail, Emera, Canadian Utility, etc... 

Since you start out, don't spend all your money to buy one company in one shot, spread it out, buy 50 shares here, and 50 shares there. You only know how it truly feels once you own the stock. Over time, you will develop an instinct knowing when it is cheap or expensive. When it's cheap, you buy more. When it's expensive, you just watch. These companies tend to increase their dividend 6% - 20% per year, you won't ever see this kind of raise in any type of jobs, especially when you compare with your government job. If you save hard enough and long enough, your dividend income will surpass your working income.

Ignore all the market noise and talking heads, don't ever sell a single share of your stocks. 10 years from now, come back to this topic and we'll talk again.


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## My Own Advisor (Sep 24, 2012)

Honestly, I think Teraflops could be fine as well.

Who is to judge these decisions about Thailand or Cambodia? Good on you to try and live your life as you please as soon as you can!

Now, for the reality check.

1. I would keep your CDN residency status and hang onto all government benefits including healthcare for as long as you can.

2. I would suggest on a lower income, not sure where you live now, but to rent. This will provide you freedom to move around, sublet, etc.

3. If #2 then #3, sell house and invest in low-cost ETFs that churn out dividends and distribution for income. Example, $100,000 invested in ETFs like ZDV will churn out about $4,000-$5,000 per year and be tax-efficient and you never have to touch the capital until your old age.

4. I wouldn't worry about RRSPs, I would max out your TFSAs first before your retire, if you can, every year from now going-forward. Once your TFSAs are maxed out for the next 10-years you can consider the RRSP as an investment account, again, with low-cost products. 

5. 10-years is not a lot of time to grow assets so I agree with the comment, to start finding a hobby (you'll need a few anyhow) and a side hustle or part-time job for income.

6. As you learn about investing in the years to come, I couldn't agree more: consider investing in dividend growth stocks vs. ETFs. Here's a small list:
http://www.myownadvisor.ca/reader-question-what-stocks-have-paid-dividends-for-generations/

7. Live frugally.

8. Live it up - you'll be fine 

Best wishes!


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## lonewolf (Jun 12, 2012)

Teraflops you mentioned bank fees get rid of the bank join a credit union & make an appointment to see a financial advisor. Since your income is so high I kinda favour RRSP over TFSA even more so as you get closer to retirement. Your income is going to be so low when you retire compared to now so lower tax bracket. Though the government has a shortage of dollars & could increase taxes. I was reading a few days back & I think it was England that one time had a 99.25% income tax in their highest tax tier.


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## none (Jan 15, 2013)

Yeah, RRSPs are a no brainer for this one. What is with all the love for TFSAs? Yeash!


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## Just a Guy (Mar 27, 2012)

Better return, but much more work, may be to look into some real estate investments. The leverage would get you a better return, steady cash flow, relatively low risk if done correctly. However, it's definitely not a hands off investment.


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## Teraflops (Feb 10, 2016)

Hi again 

Yes, I am single and rent. I was inches away from selling my Ford Ranger and motocross bike but stepped back and realized that because it was paid for all I was paying was insurance and gas. I'm close to work so a tank lasts me weeks. I was going to bus it but for the cost of a bus pass, $130 I think now, I can pay for a spot near work to park my truck and have that luxury. I am a competent mechanic and am capable of any repair needed. I have never had to bring a vehicle to a garage to get raked over the coals. Example.. 2 months ago upper control arms were worn and also front wheel bearings were on their way out - $300 in parts and a saturday on my back and I was done. That kind of work in a garage would have pushed $1600 easily. Plus I have a motocross bike that I LOVE and I need the truck for that as well and its one thing that really matters to me.. it gets me out riding and exercising. It's worth it to me to keep the truck considering what I get from it. I live very simply and frugally as it is and the truck and bike are about the only thing there is that I could cut to save money and it's worth much more to me to keep them. My other expenses are things that I cant cut on.. rent/food/phone/truck insurance/gym etc. I dont buy clothes i dont absolutely need and when I do it's a pair of Levis from Walmart for $25 and even that's rare. I'm still paying off the rest of my massive student loan and that's $300 a month and will be that way for another few years. Then I can easily put away $1300 a month.

A point was raised and I need to be very careful about... Canadian gov holding 25% if I am residing in another country regardless of my tax bracket. I'm wondering if money taken from a TFSA would be subjected to this... I hope not.. and if not.. it would make sense for me to max the TFSA every year I imagine. I also need to looking into Ontario health coverage and how it is affect by the lengths of time I am out of the country. With a history of cancer it's not something I can let go.. and shouldnt regardless. I have plenty to learn.

I also need to look up and learn about dividend growth stocks vs. ETFs and other things mentioned.. like the type of TFSA I get etc. Thanks for all replies... I have loads to think about. I'll be back with more questions I assure you.

Loads to learn! I think step #1 is to find out if funds in a TFSA can be taxed by gov if I am out of country for a certain length of time.


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## My Own Advisor (Sep 24, 2012)

re: TFSA
http://www.cra-arc.gc.ca/tx/nnrsdnts/ndvdls/lvng-eng.html#mgrnt

https://www.sunlife.ca/slfas/Invest...A+held+by+non-residents+Trust?vgnLocale=en_CA

I recall you cannot contribute to your RRSP either.

re: RRSP:
https://www.cibcwg.com/c/document_l...-beb2-a5a73c878556&groupId=220416&version=1.0


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## Teraflops (Feb 10, 2016)

OK... so from the second link it says...

_"Withdrawals can be made while the plan holder is a non-resident. Any withdrawals made while a plan holder is a non-resident will be added back to the holder's unused TFSA contribution room in the following year, but will only be available when the holder subsequently resumes Canadian residency status.

Non-residents will not be taxed on any earnings in their TFSA or on withdrawals...."_

I'm guessing this means that if I want to avoid getting taxed because I am non-resident I cant take money out of my TFSA and deposit directly into my personal account in the country that I am in? So it looks like it'd be wise for me to max out my TFSA before putting any money into RRSP's?


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## lonewolf (Jun 12, 2012)

No, I would say RRSP first to reduce income tax. Google provincial & federal combined tax rates you will see when your making 80,000 a year your taxed @ a higher rate then 20,000 - 30,000. As you get closer to retirement less time for money to grow so in latter years of working RRSP over TFSA even more important. If you can max out both TFSA & RRSP


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## My Own Advisor (Sep 24, 2012)

re: RRSP:
"Once you’ve left Canada, while the earnings and growth inside the RRSP or RRIF continue to grow tax-deferred, the Income
Tax Act imposes a non-resident withholding tax on all payments out of the plans. *The rate of withholding varies from zero
to 25 per cent, depending on the amount, the country of emigration* and any tax treaties that Canada has entered into with
foreign jurisdictions."

So, depending where you are, taking money out of RRSP as a non-resident there are withholding taxes.

re: TFSA:
"Non-residents *will not be taxed* on any earnings in their TFSA or *on withdrawals*."

So, irrespective of where you are, taking money out of TFSA as a non-resident there are no withholding taxes.

I get the higher income, put money in RRSP over TFSA thing, but it's not always that simple. Maxing out the TFSA is always a good thing, period. 

You might wish to talk to a tax expert to confirm my thinking....good luck!


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## Teraflops (Feb 10, 2016)

I'd have to sit down and do the math as best I can... the upfront fees and yearly fees add up to a lot it seems in RRSP's and I read an article that says on average they will drain at least 50% of any gains. RBC, and many banks I looked at, take $100 a year in 'fees'. Some of the highest in the world apparently and there is another fee that takes of interest earned.. MER or something like that. Then... if I am taxed at 25% because I am not in the country... RRSP's dont really seem like the easy winner to me in my situation.


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## 0xCC (Jan 5, 2012)

You aren't "taxed" at 25% based on the bolded text in My Own Advisor's post above. There is "up to" a 25% *withholding tax* which basically means you have to put a down payment on your taxes and then everything will get sorted out when you file your tax return for that tax year. You may end up owing more than 25%, you may end up getting a refund when you file.

I don't know the details of how Canadian income tax works when you are [mostly] out of the country. If your long-term plan is to be mostly out of the county you should probably research what that means income tax wise and not let things like up to a 25% withholding tax (again, not an actual tax, just a down payment that might be more or less than you actually have to pay) dictate your planning today.

You may be letting the tax tail wag the dog unnecessarily.


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## My Own Advisor (Sep 24, 2012)

Sorry, not sure I found Cambodia but Thailand at 15% is in the list.
https://www.kpmg.com/Ca/en/IssuesAn...holding-Tax-Rates-for-Treaty-Countries-v2.pdf

Again, best to put some money with a tax expert for an hour and get some definitive answers.


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## lonewolf (Jun 12, 2012)

Teraflops said:


> I'd have to sit down and do the math as best I can... the upfront fees and yearly fees add up to a lot it seems in RRSP's and I read an article that says on average they will drain at least 50% of any gains. RBC, and many banks I looked at, take $100 a year in 'fees'. Some of the highest in the world apparently and there is another fee that takes of interest earned.. MER or something like that. Then... if I am taxed at 25% because I am not in the country... RRSP's dont really seem like the easy winner to me in my situation.


 You like high fees stay with a bank if no go credit union. Also depends what your holding in RRSP regarding fees. If you don't break up all financial ties with Canada close all bank accounts the 25% does not apply from my understanding unless rules have changed.


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## lonewolf (Jun 12, 2012)

Manitoba online credit unions almost always have the highest GIC rates


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## NotJustDreaming (Oct 20, 2013)

I'm with lonewolf on the residency tax issue. If you maintain your Canadian resident status then you're taxed status quo. As I recall, obtaining non-residence status for tax purposes is a 'process' and has a number of strict requirements to qualify. Including making a declaration. People do it to stop paying tax to Canada. Depending on the new resident country it can vary from 15-25%. 

The travel.gc.ca website has a number of publications you should look into. Of particular interest is this one:
http://travel.gc.ca/travelling/publications/living-abroad

IMO you should maintain your Canadian residency on the basis of your health alone. For OHIP to kick in once you've been abroad for over half a year, you have to be back in the province for three months.

On another note, you say you're frugal but I think you should take a closer look at your spending. As a single person making $80k and renting, saving AT LEAST 50% of your income is doable. That's $30,000 after taxes and pension with no other deductions. Plenty of families live on $30K per year. Sure, it will take thinking outside the box. 

But you're already making excuses for yourself....
You 'only' have a $300 student loan repayment. That's not a whopping amount.
You certainly don't 'need' a truck. It's a gas guzzler for one (yes I know gas is cheap) and it's not free to operate now that you've paid it off. Transportation is a huge money hog and I agree with another poster that you should move within walking/biking distance of work.

Overall, what you want in ten years and what you're living right now don't jive. Your goal is certainly doable, that is retiring in 10 years, but you have to be more badass than you are. 

Start with mrmoneymustache.com. Go back to the earlier posts.
Track your spending to see where that $50,000 take home that you're not saving goes each month.

I love the live abroad idea.


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## NotJustDreaming (Oct 20, 2013)

My Own Advisor said:


> re: TFSA
> http://www.cra-arc.gc.ca/tx/nnrsdnts/ndvdls/lvng-eng.html#mgrnt
> 
> https://www.sunlife.ca/slfas/Invest...A+held+by+non-residents+Trust?vgnLocale=en_CA


The CRA URL above is if you become an Emigrant. That is you take action to become an official non-resident of Canada and establish permanent ties elsewhere.

http://www.cra-arc.gc.ca/tx/nnrsdnts/ndvdls/tmprry-eng.html outlines that maintaining ties in Canada (bank accounts, driver!s licence etc) and not establishing official residency in other countries keeps you as a Factual Resident. 

Quote from that URL:
Your tax obligations
As a factual resident, your income is taxed as if you never left Canada. As such, you will continue to:

report all income you receive from sources inside and outside Canada for the year and claim all deductions that apply to you;
claim all federal and provincial or territorial non-refundable tax credits that apply to you;
pay federal tax and provincial or territorial tax for the province or territory where you keep residential ties;
claim any federal and provincial or territorial refundable tax credits that apply to you; and
be eligible for the GST/HST credit (goods and services tax/harmonized sales tax), Canada child tax benefit, and the universal child care benefit.


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## Teraflops (Feb 10, 2016)

Thanks so much everyone.. I have so much to look into and understand it feels overwhelming. It's naive but I was hoping for a simple "You got 10 years? Then this is the best route to take".

I'll look into mrmoneymustache.com.. been wanting to. I could live more frugally but I would have such a hard time letting go of my truck and motocross bike... it really means so much to me and it's really the only thing I have that I think about and look forward to and keeps me active all year (winter I am in gym making sure I actually have the strength and health to actually ride a motocrosser hard). I'd be giving up for too much letting go of them. Someone mentioned real estate but I'm not really cut out of that cloth.

I think you guys are right... I'd better pay for and spend some time with a tax expert. Maybe they will shed some light on the RRSP or TFSA conundrum I am in.

I'll look over all the other information and tips you guys have given me tonight when I get home. 

TY


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## Afp (Mar 19, 2013)

NotJustDreaming you are a gem. I wish you would contribute more often.


A Mr Money Mustache's post - "what does your work truck say about you" - Your Work Truck is Killing You, and making you look like a Big Dumbass in the process:
http://www.mrmoneymustache.com/2015/04/28/what-does-your-work-truck-say-about-you/


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## james4beach (Nov 15, 2012)

Personally I think a 10 or even 15 year horizon is too short to expose much money into stocks. Stock investment requires longer time horizons. Do not invest in stock or dividend ETFs at this point.

My advice:

1) Seriously cut your living expenses and save much more. It should be possible to live on 30-35K a year
2) Save everything you can into high interest savings and 5 year GIC ladder, max out TFSA first
3) Invest in your health. Exercise regularly, eat well, get enough sleep, do low-cost fun activities... enjoy life

If it helps, also look at my thread on attempting a 50% savings rate. I also show budgeting of my goals for spending money each month; I'm also a renter.


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## Teraflops (Feb 10, 2016)

Alright.. this weekend will be going over my account history and figuring out what exactly is coming in and how much is going out.. and to what. The $1000 per month value I came up with was really just off the top of my head and was a guess at what I could `safely`put aside.

I`ll get my head wrapped around what I`m spending and what I might cut and then take it from there as to what I can actually put a way each month. I`ll let you guys know what I find.


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## jrsaballa (Nov 22, 2015)

High Dividend Yield stocks is the only way


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## Teraflops (Feb 10, 2016)

Alright... Did some reading over the weekend.. not as much as I had hoped because had stuff going on. Given my situation with only 10 years (now 9) and the fact that I need to be concerned about being taxed while out of country...and the horrendous amount of 'fees' the bank takes from them over time... RRSP's turn me off completely. They really just seem like a money making machine for the banks in Canada and give people this false sense that it's the best thing for them to do and the bank is your friend and looking out for your best interest... when the opposite is true. I asked around here at work and people that has RRSP's knew NOTHING about them, how they work or the fees being taken from them all the time. Not one person knew anything about them and I see now the bank relies on this type of ignorance to rake in the cash. One woman didnt even know what her money was in.. only that every month she handed some over to the bank and they did something with it. This complete lack of knowledge or desire to even know was the norm. They just trusted the bank (or whomever) to be doing what was best for them. Kind of stunned me.

I read about laddering GIC's and so far I like them as an option. I certainly wont get rich with the interest rates I am seeing but I can't expect to make much in the short time I have before retirement. At this point laddering GIC's in my TFSA is the plan while I continue to read up on other investment options. I have never contributed to my TFSA before and it's at something like $46,500... it'll take me a few years to fill that up and in the mean time at least another $16,500 will be added to that. That would bring it to $63,000 in 3 more years and I doubt I will be able to fill that up by then. If I go the GIC route it'll take me around 5 years to fill them up. So If I'm thinking about it correctly it could be a good 5 year goal for me to set my sights on.

I looked into my budget but didnt get down to a definite number but right now I have $2150 /month going out and and around $3300 coming in. Currently I am paying back health ins fees and pension contributions from when I left on sabbatical for 10 months. After May I will be done and it looks like nearly $200 can be added to my savings per month. Plus the yearly increments it looks like I can put away $1500 per month if really I buckle down. (I have already booked a trip to Cuba with my family that I need to pay for and also there are other unforeseen expenses like truck repair / new tires / track pass etc).

I averaged out what my truck and bikes cost me every month and it's $500 minimum. So that stuff is defo an expense and getting rid of it would allow me to save $2000 a month but I cant let go of them at this point. I need them to enjoy the things I love to do in life. Too important to let go of right now. But I can still surpass my original goal of $1000 per month now that I have looked into it.


I'm almost temped to buy $10,000 of RRSP's in a week and leave them in until the last possible year I can and live off of pension and TFSA funds until I need them. They could easily end up 20 years old before I touch them. As much as I dislike how the banks nickel and dime them (although $100 a year is not nickel and diming) I cant get totally screwed if I just get 10g of them right now and leave them alone for 20 years. Maybe its a good idea to 'diversify' as people say. Spread money around. Apparently I will have to come back to Canada every 9 months anyways so when I cash them in it can be when I am in this country and I wont get dinged for out of country rates.

I only have a couple weeks to find some RRPS's that Im happy with so if I'm gonna go this route I better get on it. Anyone have any tips on where I could find low fee decent RSPS?


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## Davis (Nov 11, 2014)

Keep in mind that inflation is running at about 1.9% per year, so GICs will keep you just even with inflation. You won't actually be growing your savings. Doing that would require investing in equities, such as through a low-fee Exchange Traded Fund like those offered by Vanguard. There is risk associated with equity investments.

If you aren't interested in higher returns/higher risk, I suggest you look at Oaken.com for GICs. It is an online bank, so you could do your banking from Thailand. Eqbank.ca has higher rates, at least for now, but some people think that it is riskier. Oaken offers RRSPs and TFSAs in which to hold GICs. I don't think that EQ Bank does yet.

An RRSP or a TFSA is not an investment; it is a plan in which you hold investments like GICs, mutual funds, Exchange Traded Funds and stocks. Try Tangerine or President's Choice Financial if you're looking for low-fee options including RRSPs.


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## Teraflops (Feb 10, 2016)

Thank you for the site suggestions. I'll look into them..

Ya, I'm not really comfortable with much risk to be honest. I have a 10 year plan and I need to know what my finances will look like 10 years in the future so that I can have a solid understanding and not have any surprises when retirement time comes. The more accurate I can get my snapshot of the future the better and that means low risk and low uncertainty. But again, I cant expect too much with the time I have to save. My situation is what it is and I just have to accept this is what I have to work with. I'll be 55 in 9 years and one thing I know for certain is that it will go by very quickly and before I know it... it'll be time to retire.


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## humble_pie (Jun 7, 2009)

Teraflops said:


> ... Apparently I will have to come back to Canada every 9 months anyways



wondering how long expensive flights every 9 months from thailand/cambodia back to canada & then back out again from canada to thailand/cambodia - how will the cost of these frequent flights fit into an ultra-low-budget retirement in southeast asia? would these costs not negate/cancel the plan ...


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## Davis (Nov 11, 2014)

Teraflops: my portfolio is approximately 96% dividend stocks and 4% GICs. I plan to retire in 11 weeks (yes, weeks) and live on the dividends I earn on the 96%. (I'm 50.) The GICs are just there so that I don't have to sell any shares in a down market. My portfolio is yielding about 6.5%. I will be able to live much better on 6.5% than on 2%. 

Something else you should consider is that your income will be in Canadian dollars, while your spending will be in Thai baht or Vietnamese dong. If those countries' standard of living continue to rise, you may find that your cost of living is rising faster than your ability to pay. To give an example, as the country gets wealthier, the noodle shop where you're eating dinner for $2-3 closes and is replaced by a restaurant serving $10 meals to the new middle class. What do you do? You can either be poor in a foreign country, which would suck, or find another country where you can afford to live.

It is something you should plan for as you shouldn't assume that the cost of living will remain low in Thailand and Vietnam. (Of course, either country's economy could go in the crapper for any number of reasons, and you'll be able to live like a king, but there's no guarantee either way.)


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## londoncalling (Sep 17, 2011)

I read a book several years ago on living outside the country as a Canadian and all of the implications. It may be worth checking out. Please bear in mind it was a long time ago and was also not something I was investigating but was romanced by the idea. I originally thought it was a book on taxation until I read the first chapter.
Still likely worth picking up from the library for someone in your situation.

http://www.amazon.ca/My-Blue-Haven-Revised-Edition/dp/1550227726

Hope you find a way to make it all work. 

Cheers


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## Teraflops (Feb 10, 2016)

Thanks again guys... I will look into the suggestions and links.

Thailand is really only a place holder nane for a county to go to... I have no idea where I will end up in 10 years. I, too, doubt it will be Thailand as the expat influx is changing the country and with all their money they bring the cost of living is going up. From talking to people who live in Thailand they sort of think that Cambodia will be the next county to "come round" for retired people... and after that Laos. There are other countries as well I'm just naming the few that I have been looking at thus far.

Another thing is I plan to live cheaply as possible in whatever country I can go to. If, say, I have a budget of $2200 CDN per month the plan is to spend as little as possible of it. There are expats in Thailand who live on $700 US a month. I'm not saying I could too.. only that I am a very simple man and I dont need a lot to make me happy. I would literally try to live on half of the $2200 I have a month. It would be a challenge and a goal to see how cheaply I could live. Hell... I'm doing it now and I enjoy it. I have no crazy expectations that I will be flush when I retire. As long as I am somewhere that I am challenged every day (new culture new language etc) and get to explore. I cant really get that here.


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