Hi,
I am 49 and my wife is 47. We have one son age 17. His college choice is UBC in Vancouver, BC. Since we are duel citizen (US and Canada), he only need to pay around $5K in tuition per year (yes, per year). We are also planning on moving back to Canada next year (2013) when he goes to UBC.
I used to love my job. However, our company has merged with its parent company few months ago and now I hated my job. My wife is a stay home mom. That said: we have $310K in 401K (together with Canada RRSP), $265K in company deferred compensations (Rabit Trust), $1.4 MM in savings (taxable, earning next to nothing in interest), $51K in stock trading account yeilding 5% in dividend, $110K in overseas investment, and $13K in my son's college fund. Our current monthly expenses is around $2500, including rent payment of $950.
Once we move back to Canada: Our expenses will increase to $3K per month (including health / dental / drug coverage). Spending $550K on house purchase. This will reduce our Cash portion to around $850K. AA allocation will be 75% stock (5% dividend can be achieved), $10% high yeild bonds, and 15% cash. The first 10 years (to age 59) we will have around $56K in gross income ($26K from rabit trust plus $30K in dividend), or around $48K after tax. I will start pulling out the 401K/RRSP from age 60 to 69 to replace my rabit trust income. Applying SS (and Canada pension) at age 65 (estimated around $12K per year), along with Canada Old Age Security ($6K per year for one / with my wife would be around $12K per year) at age 67. By the time we are 70, the SS/CPP/Canada Old Age will roughly replace the 401k/RRSP income. Therefore, I might not need to dig deep into my original $850K investment position (The $110 overseas investment will be added into my $850K investment position when I hit 65, thus the total investment position will be around $960K at that time).
Do you think our plan would work that I quit my job now? I am a Canadian designated professional accountant. I think I would be able to find some works that can supplement our retirement income. However, if we can afford, I rather not jumping back into the work force.
Your input are greatly appreciated.
I am 49 and my wife is 47. We have one son age 17. His college choice is UBC in Vancouver, BC. Since we are duel citizen (US and Canada), he only need to pay around $5K in tuition per year (yes, per year). We are also planning on moving back to Canada next year (2013) when he goes to UBC.
I used to love my job. However, our company has merged with its parent company few months ago and now I hated my job. My wife is a stay home mom. That said: we have $310K in 401K (together with Canada RRSP), $265K in company deferred compensations (Rabit Trust), $1.4 MM in savings (taxable, earning next to nothing in interest), $51K in stock trading account yeilding 5% in dividend, $110K in overseas investment, and $13K in my son's college fund. Our current monthly expenses is around $2500, including rent payment of $950.
Once we move back to Canada: Our expenses will increase to $3K per month (including health / dental / drug coverage). Spending $550K on house purchase. This will reduce our Cash portion to around $850K. AA allocation will be 75% stock (5% dividend can be achieved), $10% high yeild bonds, and 15% cash. The first 10 years (to age 59) we will have around $56K in gross income ($26K from rabit trust plus $30K in dividend), or around $48K after tax. I will start pulling out the 401K/RRSP from age 60 to 69 to replace my rabit trust income. Applying SS (and Canada pension) at age 65 (estimated around $12K per year), along with Canada Old Age Security ($6K per year for one / with my wife would be around $12K per year) at age 67. By the time we are 70, the SS/CPP/Canada Old Age will roughly replace the 401k/RRSP income. Therefore, I might not need to dig deep into my original $850K investment position (The $110 overseas investment will be added into my $850K investment position when I hit 65, thus the total investment position will be around $960K at that time).
Do you think our plan would work that I quit my job now? I am a Canadian designated professional accountant. I think I would be able to find some works that can supplement our retirement income. However, if we can afford, I rather not jumping back into the work force.
Your input are greatly appreciated.