Advice for a Newbe..... Please

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Hello Bob_Smith...............how do you "pay yourself an income" if you hold no assets?? I am sure it is quite simple, but it seems slightly oxymoronic. John Galt

John you need a reading comprehension course. He said he HAD no assets for most of his life and managed on his income. He HAS assets today, which he can derive an income.

[Bob_Smith]

Hi John,

I do have assets now, but I didn't for most of my adult life. I'm just saying that I view my current situation in much the same way as I did when I was younger and working. I'll pay myself what I consider to be a reasonable amount from my assets, and that will be it. That's how I had to do it when an employer was paying me, and that's how I plan do do it when my assets are paying me. If I encounter unexpected expenses, the need to protect of my asset base will supersede the need to pay the unexpected expense. I'll figure out a way to live within my means as I've always had to do.

[cute fuzzy bunny]

uh oh. do we have another "blow me!" moment coming

the boy is testy lately!

cut-throat, what you say makes sense and i'm not on any withdrawal rate at all. I takes what I needs and leaves the rest.

By the way, I dont plan on dying, but I imagine by the time I'm 100 I might smell that way...

[Jarhead*]

Looks like John Galt got into the home brew pretty heavy this evening.
Cutthroat actually showed amazing restraint.

[Jarhead*]

Bob Smith

You should not have any problem because of your self discipline. (Hard to shake mid-western values).
You are a young guy, so don't short change yourself though early in retirement, while you really have the energy and desire to do some of the things you didn't have a chance to do while you were on the grind stone.
My wife and I still have an active outdoorsey life style, but really have lost the desire to travel much anymore.
A good thing, because that's pretty expensive to do a lot of it.
Its amazing how your perspective changes with time, so again, I think from reading your posts, you may have a tendency to put a little too much forward. While I won't be 67 until October, and both my wife and I are in pretty good shape for a couple of old crows, believe me, you won't want to do anywhere near as much later, as you do now.
Not worried about you, you'll be fine.
Regards, Jarhead

No home brew here. I buy it all at the store. Also,
I don't need a reading comp. course. Sometimes
I don't read everything there is and just shoot from the hip, partly in order to stir things up. Works pretty well don't you think

John Galt

And another thing.................we are just as Jarhead
describes, i.e. outdoorsy and active but without much
desire to travel anymore. I was telling someone
today about how busy I manage to stay, even without
working and as former activities drop off. It's
natural.

John Galt

[Roger_R]

This thread has been interesting to follow for a new guy. I might only add a smaller detail on I Bonds. While they "mature" at 5 years, they can be cashed in after 12 months with a 3 month penalty in earnings. They probably don't fit in for longer term thinking, but even with the early cash in penalty they will probably beat the returns from most of the one or two year CD's I've seen.

[Bob_Smith]

Quote:

Bob Smith You should not have any problem because of your self discipline. (Hard to shake mid-western values). You are a young guy, so don't short change yourself though early in retirement, while you really have the energy and desire to do some of the things you didn't have a chance to do while you were on the grind stone.

Hi Jarhead,

This will be a balancing act I'll struggle with. I was the oldest in a large family and grew up on a farm and my parents just got by. It was a great life for a kid, but we never had much. Then I started my own family and one of my children had huge medical problems when we were just getting started, and that set us back for a long time. So if there were such a thing as a continuum with a cliff that falls off into a financial abyss on one end, and total financial security on the other, I have always felt much closer to the abyss and still do, despite the reality of my current net worth. So I have built some extras into our financial plan and removed that money from the assets that will cover our survival. That money is off the table and will be spent on things we've always wanted to do. I've removed it from the reach of my sometimes excessive self discipline and my wife (who was raised by relatively wealthy parents and has a generally more positive outlook) has instructions to keep me away from it no matter what.

[Hyperborea]

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At present we get economical health care in Canada. <snip> We will be filing Taxes in Florida next this/next year.

If you are using the Canadian health care system then you are a Canadian resident. *That means that you will be taxable in Canada too. *Even if you don't use the health care system then you still might be a Canadian resident for taxes. *IIRC you are a Canadian citizen and if you spend more time in Canada as opposed to Florida you might still be a Canadian resident for taxation.

[Calgary_Girl]

To be eligible to participate in Canada's health care system, which varies from province to province, you need to be a resident of that province, which it doesn't sound like you are, or a Canadian citizen.

[Hyperborea]

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To be eligible to participate in Canada's health care system, which varies from province to province, you need to be a resident of that province, which it doesn't sound like you are, or a Canadian citizen. (emphasis added)

Being a Canadian citizen isn't enough. *You need to be a resident of a province. *I'm a Canadian citizen but I don't live in Canada so I don't get the Canadian health care coverage. *I would have to set up residence in a Canadian province to become eligible. *Some provinces (e.g. Ontario) also have a waiting period after you establish residence during which you are not eligible for coverage.

Establishing residence in a province for health care coverage means that you've also established residence in Canada. *That therefore makes you subject to Canadian taxation. *The OP will likely have to be filing both Canadian and US taxes. *He is a Canadian resident (and a Canadian citizen but that isn't sufficient for Canadian taxes) and a US citizen (which is sufficient for US taxes). *He will get tax credits for taxes paid in other jurisdictions so that he isn't double taxed but they don't always balance out because the exemptions and rates are different. *What will effectively happen is that he will get the worst tax rates of either jurisdiction. *That includes Florida's intangibles tax - a wealth tax.

[ShokWaveRider]

I am a Canadian Citizen, I do have also a residence address in Canada and the USA. I have not lived in Canada for the required period in any year, yet I do pay into a health system. I have not been refused health care yet. But hardly ever use it. I file taxes in the USA annually. I do not keep any cash other than a small amount of living capital in Canada and do not generate a significant of interest there.

SWR

[Hyperborea]

Quote:

I have not been refused health care yet. But hardly ever use it. I file taxes in the USA annually. I do not keep any cash other than a small amount of living capital in Canada and do not generate a significant of interest there.

Just because you haven't been refused care doesn't mean that you aren't a Canadian tax resident. Using the health care system is a primary tie for residence. You must be a provincial resident to use the provincial health care system. Being a provincial resident makes you a Canadian resident.

You may not get caught right away but that doesn't mean that you aren't evading taxes if you don't file a Canadian tax return. It doesn't matter where the money actually is but only where your residence is and you made that Canada by creating primary ties (use of the provincial health care system). Canada like the US and many other countries taxes you on worldwide income so it doesn't matter where the assets are.

I suppose the other option is that you aren't a provincial resident and a Canadian resident but instead are fraudulently using the health care system. That's a criminal offence.

A final option is that this is a misunderstanding. Are you using the provincial health care coverage? Or are you using the facilities but the fees are being paid for by some sort of non-resident/traveller's health insurance?