Location: God's own country
Posted on: 28-02-06 14:00:20
Morning rain,
I was just trying to convey the reality about OAS and the Pension Plan. For CPP you should have contributed to get a pension. for EI , you must have contributed and should have a legal / valid reason to claim it.
For OAS , the requirement is just a 10 year residency and to be a senior with little or no pension and i just expressed what my friend had told me about this. But you were implying as if i was implying people to cheat the system even though i put a disclaimer to indicate that this was just what my friend told me.
Since you were unhappy that people could read that and try to exploit the system and making you as a loyal tax payer suffer, i erased it. I did not want to offend anyone.
TK
-----------------------------------------------------------------
I am a Gents and not a Ladies.
In the OP you wrote that you have about a million US. Now don't you think 2k p.m. is far too less a return on a million US. That kind of return - even a bank deposit would give you. Or was this a typo? Because surely you have some good investment ability to have built up $1 million.
Quote:
My investment ability can generate say abt USD 2K p.m
No it is not adequate to live with a lifestyle like you have right now. It would mean loads of compromises. It might sound feasible now, but after a year, you would want to revert back to your old life style. Is the 2k after or before tax? Even if it is after tax it would not give you anything substantial. Your car insurance + property tax (based on a 300k house as above) + hydro would take away 40-50 % of your 2k. So what happens to your golf and squash. Secondly you may wish to enroll your kids to a private school. That is expensive.
Quote:
Is USD 2K p.m adequate for a reasonable standard of living i.e not living like a prince but not like a pauper either. We are a family of 4, vegetarians, in reasonable health.
Would that generate an additional income?
Quote:
I would work on my own - teaching communication skills (I am a pretty good speaker) and investing
My take on this would be to go to India. $1 million USD is euivalent to 4.5 crores. A 3 cr. property in Mumbai can get you a return of 2L p.m. And you know what kind of lifestyle you can have in India with that kind of money. Your kids can study in a private school in India and get the best education at a much lesser cost.
I wish I had a million dollars
Quote:Something doesn't sound right here - how can 1 million US$ generate only about 2K USD in a month?
Orginally posted by newboyo
My investment ability can generate say abt USD 2K p.m
Quote:That's about 400K CAD - possibly more since you will get a better than market rate if you convert that much dough.
and I can afford to buy a house for say 300K USD.
But hey, that's a lot of house - why do you need such a big house, esp. in a place like London or Kitchener, which you mentioned ?
Quote:Just the gas price here would kill your $2K a month
In terms of lifestyle, currently-
I play golf n squash n swim.
My children go to private schools
I live in the best part of town in a 3 BR apt on the topfloor n drive a 4 ltr SUV.
But seriously, there is no way you can maintain that lifestyle with 2K a month here.
Especially private schools.
Quote:You can stay put where you are and send your kids to school/college here in Canada or to the US.
Obviously, I can't live like that in Canada. My objective is really to help my children go through a decent Univ education (hence the focus on a Univ town), thus the question really is
You also need to account for taxes when you invest 1 million USD in Canada, depending on how you invest it.
-----------------------------------------------------------------
"Mah deah, there is much more money to be made in the destruction of civilization than in building it up."
-- Rhett Butler in "Gone with the Wind"
Depositing the corpus in a Bank will yield a higher income, but will lead to depletion of the capital value due to inflation.
The USD 2K p.m is assumed after tax and is based upon preservation of capital on an inflation adjusted basis.
Approx what should I assume as monthly expenses for a modest lifestyle -no squash, golf etc 
and running a sedan
Quote:It depends on many more factors - where you live, whether it is apartment or home, where you send kids for education, etc.
Orginally posted by newboyo
Approx what should I assume as monthly expenses for a modest lifestyle -no squash, golf etc
$2000 CAD per month is quite low for a family with kids.
$3000 - $4000 is more like it.
But the question goes back to the fact that why would you like to move if you cannot maintain your current standard of living?
If it is only a question of kids education, you can always send them to Canadian/US colleges when they are ready.
Even if they don't win scholarships, you can pay your way thru....
-----------------------------------------------------------------
"Mah deah, there is much more money to be made in the destruction of civilization than in building it up."
-- Rhett Butler in "Gone with the Wind"
The differential cost between a "home" student and an overseas student is roughly 20K (?) per annum, which over 6 years college for 2 lads, translates into CAD 240K. Assuming financial aid and other such stuff, the differential reduces to (say) CAD 150K.
The same amount is incurred by me living in Canada, which translates into education + passport + more opportunities for the children, compared to staying in the Gulf/Desh and sending the children overseas to study.
Quote:If that is your #1. priority now, then you don't have a choice but to move.
Orginally posted by newboyo
The same amount is incurred by me living in Canada, which translates into education + passport + more opportunities for the children, compared to staying in the Gulf/Desh and sending the children overseas to study.
Cost of living in places like London and Kitchener is definetely lower than in GTA, especially rents and property values, but it is doubtful that you can maintain your standard of living with $2000 p.m.
$4000 might bring you closer to what you would expect.
If your investments can generate $2000 USD i.e. approx. $2400 CAD p.m., you need to find a way to generate the other $1500 odd.
-----------------------------------------------------------------
"Mah deah, there is much more money to be made in the destruction of civilization than in building it up."
-- Rhett Butler in "Gone with the Wind"
