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Discover Early Retirement after big move
Old 04-22-2018, 05:25 PM   #1
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Discover Early Retirement after big move

First of all, sorry for grammar errors English is a second language for me.

My name is Jeff, 42 years old, two kids under 8 years old.
I had 4 small business in South America,Argentina to be precisely.
I Was really doing well in business, companies growing. But quality of life was bad, I would like to stay more with my kids, and overall quality of life in my home country was pretty bad. I've been everywhere in the world because of my business, and I knew I could provide better in other place.
So I planned and moved to Canada, and now I've been living as a permanent resident here for almost one year.
Since I sold my business, I raised a good amount of money and was planning to open a small business here in Canada. After arrival, I started to do part time what I always enjoyed, investments ! I mean stock, bonds, forex etc.

I have invested 4 million Cad. this last 7 months, I got something around 9000 CAD per month in dividends only. (almost 3% dividends from stocks and bonds)

My expenses here are below 7000 CAD a month. Im selling my home in Argentina that can pay off my mortgage here. So no mortgage in the near future to pay. We are pretty frugal, nothing fancy, from clothes to restaurant. We like the good stuff that last, and we are fine with this budget. We shop at Costco, we are price sensitive family, and we enjoy like that.
Car paid off. Only one. Credit card always paid in full. We like to travel, camping etc and in Canada there is tons to discover!

Suddenly I started to read more and more about early retirement , and I think I could fit on this crowd. Took me some good months to convince myself.

What I am missing here?
Is it really safe to do it? I am in the 4% rule, but I always feel I am missing something. I was a hands on business owner, and I treat this subject now like my business, I am always reading and informing myself about it.

Thanks a lot
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Old 04-22-2018, 07:55 PM   #2
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Bienvenidos, Jeff...to this forum and to Canada.

Sounds like you are doing well.

Perhaps consider what you and your family may need in terms of qualifying for Canadian healthcare, the Canadian version of Social Security, etc. Is it based on working X months or quarters, or being a landed immigrant? etc.

omni
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Old 04-22-2018, 08:30 PM   #3
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Since I landed as a permanent resident already, me and my family are covered for health care. I'm considering a paid extension for dentist, some medicine and extras, 300 cad monthly.
Thanks for answering and commenting.
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Old 04-24-2018, 07:04 PM   #4
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So anyone from Canada can give me any opinion? On amount of investment or if I'm missing something
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Old 04-24-2018, 08:03 PM   #5
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So anyone from Canada can give me any opinion? On amount of investment or if I'm missing something
Hi Jeff,

Welcome.

Have you read the following from the FAQs?
Some Important Questions to Answer Before Asking - Can I Retire?
Its a good place to start in determining if you are ready to RE.
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Discover Early Retirement after big move
Old 04-25-2018, 01:33 AM   #6
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Discover Early Retirement after big move

Hi Jeff, congrats for making big changes to improve the quality of life for your family!

If your annual expenses are less than 84k per year and you have more than 4 million in investable assets, you should be able to make things work.

You did not go into much detail about how you invest your 4 million. It may be good to have a financial advisor check things over for you if youíre at all unsure. You just want to make sure youíre diversified and not taking any undue risks. You may already be doing that, I just didnít see you talk about it.

Good luck!
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Old 04-25-2018, 10:20 AM   #7
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Hi Jeff, congrats for making big changes to improve the quality of life for your family!

If your annual expenses are less than 84k per year and you have more than 4 million in investable assets, you should be able to make things work.

You did not go into much detail about how you invest your 4 million. It may be good to have a financial advisor check things over for you if youíre at all unsure. You just want to make sure youíre diversified and not taking any undue risks. You may already be doing that, I just didnít see you talk about it.

Good luck!
I would suggest a Vanguard or Fido review. Be careful about sales pitches from financial advisers.
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Old 04-25-2018, 08:31 PM   #8
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Jeff congrats on your transition to Canada, and your success. At first glance, with the 4% SWR at 4mil and your age, with that size family and a $84CAD/yr budget including healthcare...

you look good to go.

Since you say investing interests you, I would ask what aspects of it interest you specifically?

If you are good at math and basic excel functions you could make a spreadsheet with some assumptions (inflation 2-3% / returns 3-7%) predicting your age of death and any other passive income streams or future tax changes to do what-if scenario's, that's what I do. Like what-if my wife passed and SSA ran out for her, how would my income and tax situation change, and would that change my withdrawal approach. Or what-if we have 4 bear runs of -10% the first 4 years of my ER? That one scares me the most.

For me, I realized I didn't so much like investing, as I did understanding future what-if tax scenarios for my family and situation. I needed to lower my tax bill which for me lead to investing.

I try almost as hard to minimize my tax exposure as I do maximizing gains. I actually use the asset allocation approach (to some variance as I am in 100% equities and always plan to be) as many others on this forum do. IF you are unfamiliar I would google that.

I think a lot of folks use it because its simple to understand, and execute once setup properly...its efficient and proven.

I personally prefer to be invested in ETFs with 20% of my portfolio individual equities. I have a huge risk appetite as my with my equities AAPL MMM and CASY, my ETFs are weighted a bit towards healthcare, and most are titled a little heavy into tech right now it seems.

I try to keep expense ratio in check, mine including fees after re-balance related transactions and plan bookkeeping fees is about .072%.

I re-balance about twice a year when my Large, Mid or SmallCap holdings get above or below my target allocation by +/- 6%. Target is 50% Large, split the difference for Mid and Smallcap at 25%. So if for instance my portfolios LargeCaps outperform and all of a sudden are 56% of my weight, I sell them and buy whatever I need to get me back to 50/25/25 make sense?

With my tilt towards healthcare, and my winning equities, I've been able to basically outperform all three major indexes and warren buffet the past five years during one of our countries greatest bull runs.

Does the crystal ball say all of this success will end? Doubtful, but its up to the millennial's hahahah.
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FIRE in 2031 @ 50yrs old (+/- 2yrs) w/ a hypothetical $2.5mil portfolio, 3 appreciated homes worth $1.0mil and rental income to fund my gap years until RMD. Assets will go to an inherited IRA where I plan on watching the investments grow until I die or the trust gets executed.
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Old 04-26-2018, 07:04 PM   #9
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I would suggest a Vanguard or Fido review. Be careful about sales pitches from financial advisers.
Right now I'm working with Dominion securities , a subdivision from RBC, you guys probably know then. Overall they charge .83 % of total investment. Yes, it's high. But it's all. No other hidden fee in funds or trades or exchange between USD and cad accounts. They do not charge anything in international bonds holding, which is 8 ,10% of my portfolio.
They've been very helpful in getting lawyers, accountants, a very low rate in buying a house, etc. We discuss my investments every month, so I cannot complain.
I have some etf, funds and direct stocks.


What is a Fido review?


I also manage myself 5% of my investments on questrade... It's my hobby beside bycicle, BBQ, my kids, walking, wine_cheese.
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Old 04-26-2018, 07:15 PM   #10
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Hi Jeff, congrats for making big changes to improve the quality of life for your family!

If your annual expenses are less than 84k per year and you have more than 4 million in investable assets, you should be able to make things work.

You did not go into much detail about how you invest your 4 million. It may be good to have a financial advisor check things over for you if youíre at all unsure. You just want to make sure youíre diversified and not taking any undue risks. You may already be doing that, I just didnít see you talk about it.

Good luck!
Thanks, I try hard to be good with my investments.
Like I explained above, I'm paying for Dominion securities right now for helping me with investments. They are very helpful and I'm enjoying so far.
I researched with other advisors , but they either charging more or weren't so prepared.

Thanks for all information here, I'm reading then again.
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Old 04-26-2018, 07:49 PM   #11
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...
What is a Fido review?
...
Fidelity.
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Old 04-28-2018, 07:27 AM   #12
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Jeff, great to hear from other Canadians! Welcome to the forums. Please keep us updated as you move forward. You have made a couple big moves that take a lot of guts, and are doing extremely well for 42. I think you're in great shape. If you thought money was going to be a little tight, you could always work part time to supplement your income. However, if you are like me, and have owned several businesses before, chances are you may get the itch to start something up again. I own a couple small businesses and rental properties in Ontario. I am not sure which province or territory you live in, or what the business landscape was like in Argentina but this is a great place to live and work, except for perhaps the higher level of regulation and red tape. Depending on your personality and where you live, you could look at real estate investing as a part time / investment option. Keep up the good work, and good luck!
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Old 04-28-2018, 01:29 PM   #13
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Welcome Jeff76!
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Old 04-28-2018, 07:54 PM   #14
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Jeff, great to hear from other Canadians! Welcome to the forums. Please keep us updated as you move forward. You have made a couple big moves that take a lot of guts, and are doing extremely well for 42. I think you're in great shape. If you thought money was going to be a little tight, you could always work part time to supplement your income. However, if you are like me, and have owned several businesses before, chances are you may get the itch to start something up again. I own a couple small businesses and rental properties in Ontario. I am not sure which province or territory you live in, or what the business landscape was like in Argentina but this is a great place to live and work, except for perhaps the higher level of regulation and red tape. Depending on your personality and where you live, you could look at real estate investing as a part time / investment option. Keep up the good work, and good luck!
Thanks for everything. I'm living in Winnipeg.
Right now I'm looking for some option in real state. A apartment near the university for renting, but I am still researching.
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