Living frugally | Your stories | Discussion forum

Please consider registering
guest

sp_LogInOut Log In sp_Registration Register

Register | Lost password?
Advanced Search

— Forum Scope —




— Match —





— Forum Options —





Minimum search word length is 3 characters - maximum search word length is 84 characters

sp_Feed Topic RSS sp_TopicIcon
Living frugally
July 13, 2017
6:07 pm
Bill
Member
Members
Forum Posts: 523
Member Since:
September 11, 2013
sp_UserOfflineSmall Offline

Note by admin: this thread was split off from this RRIF discussion

RRSPs can be very useful tools, so figure out the best you can if they're for you - no guarantee you'll be right but that's life. Before you invest in any instrument you should educate yourself about all the rules and ins and outs, RRSPs being no exception. I know a young professional who's making very good money, working abroad and in remote places, paying tax at the highest rates and he's chunking the max in every year and getting very beneficial tax refunds. He plans to get off the treadmill in a few years, around age 37, and live a nomadic, frugal life after retirement, living on maybe $20K a year and paying none or hardly any taxes. He's very happy the government came up with the idea of RRSPs.

July 13, 2017
6:23 pm
Top It Up
Member
Members
Forum Posts: 350
Member Since:
December 17, 2016
sp_UserOfflineSmall Offline

Bill said

... He plans to get off the treadmill in a few years, around age 37, and live a nomadic, frugal life after retirement, living on maybe $20K a year and paying none or hardly any taxes. He's very happy the government came up with the idea of RRSPs.  

From someone who has gone through that I wish him the best of luck. I found out that living frugally wasn't much fun - like, what the hell's the point. It's much more fun to just become a minimalist and enjoy the accumulated wealth to the fullest.

July 13, 2017
6:40 pm
Bill
Member
Members
Forum Posts: 523
Member Since:
September 11, 2013
sp_UserOfflineSmall Offline

Top It Up, I agree, I'm not really familiar with all the current nuances of frugal vs. minimalist so maybe I used the wrong word, but he's already a minimalist in the sense that he has no interest in acquiring stuff or dependents - he says even having a plant is too much commitment!

July 13, 2017
6:53 pm
Top It Up
Member
Members
Forum Posts: 350
Member Since:
December 17, 2016
sp_UserOfflineSmall Offline

Nope, you understand it perfectly ... $20,000/year is frugal and doesn't allow for a lot of living, it's more just a hangout lifestyle ... boring, boring, boring.

Minimalist to me is just the confluence of wants and needs. While I want and can afford a Porsche Cayenne I really only need a Toyota 4Runner.

July 14, 2017
6:18 am
Bill
Member
Members
Forum Posts: 523
Member Since:
September 11, 2013
sp_UserOfflineSmall Offline

TopItUp, not so sure about that, the minimalist I know wouldn't even consider a Cayenne or 4Runner - drives a hand-me down 2008 Corolla with the back seats pulled out so he can sleep in the back when he's prospecting or rock climbing in his times off. It's got 200K on it, he says he's going for at least 500K. And boring is the last word anyone who knows him would ever associate with him.

July 14, 2017
7:58 am
Top It Up
Member
Members
Forum Posts: 350
Member Since:
December 17, 2016
sp_UserOfflineSmall Offline

Each to their own, but from my perch, having pulled the plug 25 years ago at the age of 40 I just see sleeping in the back of a 2008 Corolla as nothing more than "a hangout lifestyle." I mean is that his plan until the end of time?

July 14, 2017
9:47 am
Cranston
Member
Members
Forum Posts: 189
Member Since:
April 7, 2017
sp_UserOfflineSmall Offline

Do the frugal minimalists have RRIF withdrawals?

July 14, 2017
9:50 am
Top It Up
Member
Members
Forum Posts: 350
Member Since:
December 17, 2016
sp_UserOfflineSmall Offline

Of course, why wouldn't they? Though, still a few years out to be "worried" about that transition.

July 14, 2017
11:41 am
Bill
Member
Members
Forum Posts: 523
Member Since:
September 11, 2013
sp_UserOfflineSmall Offline

Top It Up, as far as I know he only sleeps in the back of the Corolla sometimes when he's out in nature. Owns his own (mortgage-free by age 30) house - spartan-furnished, bachelor-pad, couple rooms rented to whatever buddies are currently on marriage/relationship strikes for one reason or another). As far as the end of time, can't speak for him but it seems so - he sees himself still doing triathlons, climbing, rambling around the bush prospecting, into his 80s, as far as I know. Anything but a "hangout lifestyle". And, yes, I assume if there's any left in his RRSP he'll throw it into a RRIF at the appropriate age to continue to grow it sheltered as long as possible, to stay in those low tax rate income levels and to maximize any benefits the good people of Canada want to throw his way.

July 14, 2017
12:27 pm
Top It Up
Member
Members
Forum Posts: 350
Member Since:
December 17, 2016
sp_UserOfflineSmall Offline

The reference to "hangout lifestyle" was not a reference to one's "physical" activity level but rather to the thinness of the string that one chooses to live on.

Please write your comments in the forum.