ShokWaveRider
Give me a museum and I'll fill it. (Picasso) Give me a forum ...
All:
As in trying to generate new posts here is an interesting situation.
I am an ER, I am 49 my wife is 45 Our net worth (Not cash) is about 1.5m give or take. This does not include personal items like jewelery and art etc, only immediately convertable cash instruments, Including our copiously inflated home in Southern California which is now up for sale. (That is the non cash part, it is paid for though) My wife still works for now to retain health care.
Here is the plan:
When the house is sold, we plan to rent locally for three months or so so my wife can continue working and getting our health care.
I will go to Canada and register as a resident for Socialized health care + pay an extra for better coverage. It takes 3 months to get it. (Now you know why 3 months was used above) My wife and I are both American and Canadian Citizens so this is not an issue.
Why me, because I have a pre-existing condition with high blood pressure and would get charged a lot for supplimental insurance dureing the 3 months I was not covered. While my wife is healthy and can get supplimental insurance for the 3 months waiting period very reasonably.
Then I will return to CA until the 3 months is up and I am covered. My family is in Canada so I can use their place as a residence. After I am covered with health care we will plan a year of visiting our families in Canada who are complaining that we have not spent any significant time together in 25 years and we are all getting older. We will most likely rent a modest home for this period as we do not want to settle in the areas where the family lives.
We will eventually move out west to Vancouver Island or the Lake district interior of BC. and settle there, when a) we are fed up of the family or b) they are fed up of us, which ever comes first.
OK that is the background and current plan, it would be a lot better if interest rates were higher. My personal nemasis.
$350 of our cash is in 401ks, the rest is all after tax cash! Yes I know, but I am into preservation of capital at the moment as I am convinced I am on the borderline of funds for a comfortable retirement on our money for the next 30 - 40 years. No SS yet. Although both of us are fully paid up. Both here in the US and my wife is also fully paid up in Canada. I have to work 3 more years in Canada to be fully paid.
We were planning in converting our 401ks to after taxes using the SEPP 72T withdrawal loophole. Taking minimum out to ensure minimum taxes paid. As as, as far as I have researched taxes are payable on 401ks in the US even if one lives outside. I have still to research this.
This withdrawal would be probably what we live on and hopefully will not need to dip into the other cash for some time.
Eventually we will need $200-300k US for a home.
This all translates to about $2m Canadian at current rates. Interest rates are taxable on the cash money in Canada. Unless I can figure out a way to stash it in Panama or something.
Any comments or even more so experiences would be appreciated.
Ian
As in trying to generate new posts here is an interesting situation.
I am an ER, I am 49 my wife is 45 Our net worth (Not cash) is about 1.5m give or take. This does not include personal items like jewelery and art etc, only immediately convertable cash instruments, Including our copiously inflated home in Southern California which is now up for sale. (That is the non cash part, it is paid for though) My wife still works for now to retain health care.
Here is the plan:
When the house is sold, we plan to rent locally for three months or so so my wife can continue working and getting our health care.
I will go to Canada and register as a resident for Socialized health care + pay an extra for better coverage. It takes 3 months to get it. (Now you know why 3 months was used above) My wife and I are both American and Canadian Citizens so this is not an issue.
Why me, because I have a pre-existing condition with high blood pressure and would get charged a lot for supplimental insurance dureing the 3 months I was not covered. While my wife is healthy and can get supplimental insurance for the 3 months waiting period very reasonably.
Then I will return to CA until the 3 months is up and I am covered. My family is in Canada so I can use their place as a residence. After I am covered with health care we will plan a year of visiting our families in Canada who are complaining that we have not spent any significant time together in 25 years and we are all getting older. We will most likely rent a modest home for this period as we do not want to settle in the areas where the family lives.
We will eventually move out west to Vancouver Island or the Lake district interior of BC. and settle there, when a) we are fed up of the family or b) they are fed up of us, which ever comes first.
OK that is the background and current plan, it would be a lot better if interest rates were higher. My personal nemasis.
$350 of our cash is in 401ks, the rest is all after tax cash! Yes I know, but I am into preservation of capital at the moment as I am convinced I am on the borderline of funds for a comfortable retirement on our money for the next 30 - 40 years. No SS yet. Although both of us are fully paid up. Both here in the US and my wife is also fully paid up in Canada. I have to work 3 more years in Canada to be fully paid.
We were planning in converting our 401ks to after taxes using the SEPP 72T withdrawal loophole. Taking minimum out to ensure minimum taxes paid. As as, as far as I have researched taxes are payable on 401ks in the US even if one lives outside. I have still to research this.
This withdrawal would be probably what we live on and hopefully will not need to dip into the other cash for some time.
Eventually we will need $200-300k US for a home.
This all translates to about $2m Canadian at current rates. Interest rates are taxable on the cash money in Canada. Unless I can figure out a way to stash it in Panama or something.
Any comments or even more so experiences would be appreciated.
Ian
My spouse is neither American nor Canadian and in retirement (not for about another 8 years) we plan to become tax residence-less while playing perpetual travellers for a number of years.
