nash031
Thinks s/he gets paid by the post
We are retired in Mexico...
... you can also get a job teaching English.
Does not follow.
We are retired in Mexico...
... you can also get a job teaching English.
Hi DrRoy,
I use the 3-4 % withdrawal rate as a rule of thumb. In reality my withdrawal rate will likely be variable. I am thinking there will be an absolute minimum withdrawal rate, lets say a real 2% rate, along with a variable portion depending on how well my portfolio is doing. Also with kids I am also flexible and would likely have to continue working if my future child has special needs requiring income over and above that which my portfolio can provide. However I am very independent and was raised to take responsibility for myself. Hopefully my kids will pick up the same skills and traits.
Yes it's true... everything is free in Canada!
A friend from high school just posted on facebook that her daughter is getting a full ride (volleyball) to USD. That means they can repurpose (with a tax hit on the gains) the fully funded 529 to their early retirement.
That's one way to cover the US college expenses... have a bright and incredibly athletic 6'1" daughter who can spike like crazy.
I know that's an option for some people, however I have no known genetic relatives from my side or my wife side who have anything approaching the athletic talent needed to get a scholarship. Probably a super long shot but hey I'll take it if it comes.
OP - Welcome.
Your plan sounds fairly reasonable, but I felt there were 2 issues in all the discussion.
1) You are renting, and perhaps in 10 years you will have the cash, but still be renting, besides the concept of a low foreign COL country, what is your backup plan if you stay in Canada for housing (rent all life, or buy in cheap city like Halifax NS ?).
The term "third world" comes from the cold war era and refers to nations not aligned to Nato (the first world) or communist countries (the second world). This included almost all of latin america, Africa, middle east, some of Europe and much of Asia. There are tons of health and educational opportunities in many of those countries. In fact many of those countries offer excellent healthcare and educational opportunities at very affordable prices.2) Children, will you really raise them in a 3rd world country, won't that limit educational and health opportunities ?
Now... Some people travel the world with their kids... I wouldn't. Anything over a 4 hour plane trip with infants can be grueling (I've done 5 from 5-15 hours in the last 2 years). Changing their sleep patterns is rough on you and them. You have to pack all their food, diapers, milk, transport... Or you have to figure out where to get that stuff at your destination.
Sorry, posted to wrong thread!No
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+1. Makes no sense.It's very odd to hear you quoting your net worth and not include your wife's. Same with expenses. Your expenses are $28,000 and hers are similar? Don't you mean your expenses are $56,000.
And it is my understanding that all American universities charge annual tuition fees of $5 million per student. Also, IIRC every US citizen is required to spend 20 years of compulsory military service. Etc.It is my understanding that public universities in Canada offer free tuition to their citizens.
I know of one first world country that limits education and health care opportunity for its poorer citizens. They also limit their opportunity for home ownership.2) Children, will you really raise them in a 3rd world country, won't that limit educational and health opportunities ?
We have two friends who took two years off when their kids had just reached school age. They bought a house in Antequera and spent 2 years giving their kids total emersion in Spanish. They kept their house in Monterey CA. He was a school teacher and she had just sold her store on the waterfront so leaving was easy. We visited them after our Med Cruise. The kids would play on the street after school. A childhood like the old days.I think the biggest wildcard isn't money or where to live... It's children.
Speaking as a 40 year old with 2 kids that CAN fire, I can tell you that it's looks VERY different with kids than without.
Without kids you can do what you want... Spend hours on hobbies, travel the world, pick up side gigs, play video games all day
+1I think anything is possible if you want to do it enough. Obviously it takes planning and commitment. Thinking you are tied to a job is one of the biggest mental blocks.
My tuition was $117.50 to $192.50 in a big city state university, and I graduated in 1972.
But with current college graduates running up $20-25K in student loans (on the low end,) it's going to put them 7-10 years behind in starting saving for retirement aggressively.
And with compounding and taking those years out of the marjet, those having to pay back student loans are going to be way behind those that didn't have to take out student loans.
If I was going to start college today, I'd go to cheaper community college 2 years, including going to Summer school. Then I'd transfer to a state university to finish up. And I'd live like a monk--triple frugal.