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Old 07-31-2017, 03:39 PM   #21
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Assuming most would go to inheritance,. I would invest in a conservative lazy 60/40 or 50/50 portfolio based mostly upon the age of the children. Your folks have time to recover from market downturns and there seems to be no reason not to build in growth. I think the idea of selecting sectors would not be wise nor putting too much in CD type investments.

Perhaps putting a couple years or slightly more in living expenses in CDs would be wise as a backup.

I'm surprised to read the questioning, in this forum, about your Canadian health care opportunity. Most posts here speak about frugality at all costs. The Canadian option is one I would strongly consider since health care is a reasonable percentage of their expenses. Having said that, it is still low enough that the change in lifestyle, needs to be balanced.
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Old 07-31-2017, 06:34 PM   #22
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Enjoy life and when you go give it to the church.
Not everyone belongs to a church. And not everyone buys into organized religion. I find this comment very odd.
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Old 07-31-2017, 07:45 PM   #23
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Not everyone belongs to a church. And not everyone buys into organized religion. I find this comment very odd.

Why Over 90% have some kind of religious background.... and you probably do too...

It is not a stretch to think that a good number leave some money to their church... so why is it 'odd'? Or should I quote 'very odd'?
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Old 07-31-2017, 07:48 PM   #24
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Not everyone belongs to a church. And not everyone buys into organized religion. I find this comment very odd.
I dont this comment is "very odd". The OP asked for opinions. It was an opinion, one that the poster is going to do. Hey, we can even start a poll on it, odd, very odd or not odd. I saw polls on handkerchiefs and pens.
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Old 07-31-2017, 07:59 PM   #25
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Not everyone belongs to a church. And not everyone buys into organized religion. I find this comment very odd.
God has been great to me. I don't find it odd at all. In fact I am very happy about leaving the church in my will. They can do a lot of good works with the money.
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Old 07-31-2017, 08:09 PM   #26
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The only money I have in the market is money I want to work for me. The 'extra' money that I don't need to put to work is in cash and physical PM. I only wish I could withdraw more of my IRA funds penalty-free and take it out of the hands of TBTF banks.

If your father's adviser is suggesting CDs and bonds, he is certainly helping him to minimize risk and hang on to his money. I definitely wouldn't want to be the one suggesting he ignore that advice and go into the market now, especially at such an historically high level. There seems to be a lot more downside than upside risk at these P/E ratios and in this stagnant economy. I do feel much better having some PM in my portfolio as stored value for a bad day, but not as an investment.

I wouldn't feel bad about missing out on the market now, in favor of having lots of liquid cash to invest after the next big cyclical market opportunity - whether it be in stocks, real estate or other income producing asset. (It is overdue to happen within the next couple of years). Until then, travel and fun sound like a much better investment.
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Old 07-31-2017, 08:09 PM   #27
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I don't think it is necessary to attend or belong to a church to give money to one. I've given money to a local church I've never been to in order to help support their homeless programs.
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Old 07-31-2017, 10:58 PM   #28
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It seems to me that the only reason (cited) to move to CAN is for cheaper health care. I suppose if money gets tight, he could then move. Other than that I'm surprised he would even entertain that idea (unless there are other reasons not mentioned to move.)

I have a number of charities which will benefit if I have money left over. The kids will get a little bit - not much. We got 'em educated, started out in the world, helped with house down payments, wedding expenses, Roth IRA funding, etc. So we helped while we are alive. But everyone is different, so YMMV.
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Old 08-01-2017, 05:23 AM   #29
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re: Canada vs US taxes and health care...

Debunking Canadian health care myths – The Denver Post
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Old 08-01-2017, 05:52 AM   #30
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re: Canada vs US taxes and health care...

Debunking Canadian health care myths – The Denver Post
The article reflects the conversation I had with a group of Canadians sitting around the pool in Feb. One was patiently waiting for his second knee replacement surgery. All were pleased with their care.
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Old 08-01-2017, 06:00 AM   #31
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JC you need to have a sit down with your parents. If they are risk adverse then the answer is CD's and Bonds. If they have some tolerance to risk then AT LEAST 25 % in equities. 500k in Vanguards VTSAX and 75 % 1.5 million in intermediate bond fund VBILX. Shame after 35 years they feel the need to leave the country that made them millionaires.
Funny you say that because my dad always says had he stayed in China (where he's from), he'd be a far richer man. He doesn't regret anything and obviously, who would have had the foresight decades ago to know China would undergo hyper growth. Also I don't think people need a reason to leave whatever country that made them "rich". I certainly have no plans to stay int he US once FIRE occurs. It's a big world out there, lot more to see than the 50 states
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Old 08-01-2017, 06:08 AM   #32
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If he is going to leave it to you he should heed your advice. I would recommend that he put it in a diversified set of index funds at my current AA.
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Old 08-01-2017, 10:51 AM   #33
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I think your Dad is reacting to all the diverse inputs he receives. I am sure he can afford Medicare plans A thru D. As a dual citizen, he can always apply to re-enter Canada if and when the facts are known.

He should probably load up on FI because an experience with equity might be negative in the next 6 to 9 months.

What to do with the estate is a much longer conversation! When I get it figured out, I will share it.
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Old 08-01-2017, 11:20 AM   #34
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I see the price of housing in Ontario on HGTV and I just cringe. Last time we were in Nova Scotia, we were paying 15% sales taxes and the cheapest beer was $12.99 a six pack. I don't know how families make it financially without second jobs--much less save enough to retire early.

Our U.S. low cost of living far out strips the cost of healthcare --especially after Medicare kicks in. I'll just be glad to vacation there periodically
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Old 08-01-2017, 01:33 PM   #35
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I see the price of housing in Ontario on HGTV and I just cringe. Last time we were in Nova Scotia, we were paying 15% sales taxes and the cheapest beer was $12.99 a six pack. I don't know how families make it financially without second jobs--much less save enough to retire early.

Our U.S. low cost of living far out strips the cost of healthcare --especially after Medicare kicks in. I'll just be glad to vacation there periodically
All in the eyes of the beholder. To your low US cost of living point, I raise you with my NYC cost of living where a 1bed is $4k a month, 40+% in income tax, and a glass of wine is $14. I'm sure if a Canadian came to NYC and saw my expenses, they would think the same thing as you. Cheap and expensive places everywhere.
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Old 08-01-2017, 06:52 PM   #36
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I see the price of housing in Ontario on HGTV and I just cringe. Last time we were in Nova Scotia, we were paying 15% sales taxes and the cheapest beer was $12.99 a six pack. I don't know how families make it financially without second jobs--much less save enough to retire early.

Our U.S. low cost of living far out strips the cost of healthcare --especially after Medicare kicks in. I'll just be glad to vacation there periodically
Having some Canadian blood, I looked at a couple of places that were meaningful to me. Here is an interesting cost of living comparison with some towns in the USA, Canada , and from around the world. Like the USA, there are towns that are more affordable in Canada. Windsor which is right over the Detroit river is comparatively affordable. Halifax is on the expensive side being higher than Houston, cheaper than NYC.

You will need to find your way down on the link to see a bar chart comparison. I did not search to see if people felt these were accurate numbers but I expect if the assumptions are poor, they have been made the same for all cities.


https://www.numbeo.com/cost-of-livin...=Chicago%2C+IL
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Old 08-02-2017, 03:49 AM   #37
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We're dual Can-US citizens and I assumed canada would have free healthcare for him if not drastically reduced vs the USA. I'm not too familiar with retirement healthcare in teh US at all but he told me in passing he'd have to pay something like 2k a month for him and my mom for basic coverage. Perhaps he is ill informed but I certainly am even less so!
Lots of good advice in this thread for you. Congratulations to your parents for working hard in the US, and possibly moving back to Canada.

This could be a good time for you and parents to study up on the retirement picture. Don't necessarily have to make big changes, but discuss the possibilities with parents. In the long run it will benefit your family.

One thing I'd like to point out is that it is difficult to imagine what life will be like for your parents in 5, 10, 20 years or more. Some of that 2M can go far in helping them through difficult years.

What do you suppose it would be like in Canada vs US if one or both transition to long-term care? Probably not something they want to discuss, but it becomes very important for many, later in life. Do you know of any cost comparisons between the countries?
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Old 08-02-2017, 06:40 AM   #38
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....Question is, what would you do with $2m of liquid assets if you don't really need to use it? He doesn't know much about markets and investing. His financial advisor keeps telling me to shift to bonds and CDs as he approaches his retirement. I think is a bit ridiculous but they probably need to abide from some script. Personally, I think he should keep that money invested in the markets; I'd pick tech myself. But I wanted to get opinions from others more experienced than myself in the matter!
My mother is in a very similar situation.... she hasn't touched her retirement portfolio in years since SS and commercial property cash flow are more that what she spends. Since she has 5 heirs, I invest it in a 60/40 AA consistent with what her heirs would invest it.

For those who have "won the game" there are two schools of thought. One is since you don't need to take risk then invest it all in safe investments. the opposite extreme is that since you don't need the money you can take a lot of risk and even invest it all in stocks.

Why would anyone with such excess live in Central America or Canada when they can easily afford to live in the US?
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Old 08-02-2017, 06:59 AM   #39
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My mother is in a very similar situation.... she hasn't touched her retirement portfolio in years since SS and commercial property cash flow are more that what she spends. Since she has 5 heirs, I invest it in a 60/40 AA consistent with what her heirs would invest it.

For those who have "won the game" there are two schools of thought. One is since you don't need to take risk then invest it all in safe investments. the opposite extreme is that since you don't need the money you can take a lot of risk and even invest it all in stocks.

Why would anyone with such excess live in Central America or Canada when they can easily afford to live in the US?
I think we agree on the path forward in terms of the investment.

While I do not know much about living in Central America, moving to Canada could be a wonderful thing. It's a great place and offers a wonderful lifestyle. The weather could be a problem as it in many areas of States but that can be rectified with a warmer weather home or the endurance of a Canadian.
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Old 08-02-2017, 07:35 AM   #40
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Why would anyone with such excess live in Central America or Canada when they can easily afford to live in the US?
You probably didn't mean this as an insult to Canada, but lumping Canada in with Central America this way is quite an affront. I could afford to live anywhere in the world, but Canada is my home. On many measures, Canada ranks very high as a good place to live and in most personal happiness measures ranks quite a bit ahead of our wonderful neighbour to the south. That that's probably just fake news.
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