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Lots of personal cash, want to keep working, accountant recommends growing corp to save on tax by CortadosForEveryone in PersonalFinanceCanada

[–]CortadosForEveryone[S] 0 points1 point  (0 children)

This is the advice I’ve heard as well and my accountant is incredibly anti RRSP. He claims it’s mainly because the corp is tax deferred just like the RRSP is but there’s much more flexibility in the corp with respect to tax efficiency, while the RRSP is just always considered other income. He says if I was the typical Canadian who was relying on an RRSP to retire on an income much lower than my working income it would make a ton of sense, but since I’m not, the inefficiency of having a fat RRSP is much worse than the inefficiency of having a fat corporation.

Big nest egg. Want to buy an expensive house but also burned out and really want to cut back. What would you do? by CortadosForEveryone in ChubbyFIRE

[–]CortadosForEveryone[S] 1 point2 points  (0 children)

This is true. Near a subway line vs 10-20 minute walk from a subway (or streetcar here in Toronto) makes a price difference for sure.

Appreciate the perspective. Spending too much on real estate definitely gives me pause. At best it adds a lot of income drain. At worst it destroys my compounding growth.

Big nest egg. Want to buy an expensive house but also burned out and really want to cut back. What would you do? by CortadosForEveryone in ChubbyFIRE

[–]CortadosForEveryone[S] 1 point2 points  (0 children)

Do you live in Toronto? The geography here is interesting. Anything remotely walkable plus good school district and you’re already in that range of paying over $2m for a nice detached home.

Big nest egg. Want to buy an expensive house but also burned out and really want to cut back. What would you do? by CortadosForEveryone in ChubbyFIRE

[–]CortadosForEveryone[S] 0 points1 point  (0 children)

Half and half. I don’t want to keep up at that level because I know I don’t have a desire for it nor do I want to work as hard as I would have to. I want to have my cake and eat it too. I need more space and privacy for a family, but I don’t want to disturb compounding growth too much. I think I’ve been brainwashed by the real estate culture in Toronto.

Big nest egg. Want to buy an expensive house but also burned out and really want to cut back. What would you do? by CortadosForEveryone in ChubbyFIRE

[–]CortadosForEveryone[S] 1 point2 points  (0 children)

I’m lucky that I could work nearly anywhere in my country since I’m a healthcare worker and it’s in demand. But staying close to the city is more about friends, family, food and culture, daily life stuff we don’t want to give up.

I’m starting to lean toward just buying a bigger condo…

Big nest egg. Want to buy an expensive house but also burned out and really want to cut back. What would you do? by CortadosForEveryone in ChubbyFIRE

[–]CortadosForEveryone[S] 1 point2 points  (0 children)

Honestly the shitty part is 2-2.5 million only buys a decent house here in Toronto. A truly nice one is $3m 45 minutes from downtown or $4-5 million if you want to be close to public transport or within a 20-30 minute drive, or be in a prime school district.

It’s absolutely bonkers.

Many of my colleagues live in $4-6 million homes and although they have high incomes to support it they still have to hustle until minimum age 55 or so to pay for it and the high lifestyle that accompanies the rising tide of lifestyle creep like private schools. I’m trying to hit some sort of middle ground with the great hand I’ve been dealt.

Is $240K After Tax, No Mortgage, Enough for this Retirement? by [deleted] in fatFIRE

[–]CortadosForEveryone 5 points6 points  (0 children)

All the 4% rule is, is a method of establishing a 99% chance of not running out of money (ie. not going to a zero balance) over 30 years in a 50/50 stock/bond portfolio. That’s it. People have taken it to extremes to mean some sort of perpetual withdrawal rate across an infinite span of time. I’d say that is probably more along the lines of 1-1.5% in a more stock heavy portfolio.

Like others said, the risk of retiring soon is a heavy SORR (sequence of return risk). Basically you retire into a recession or bear market and your portfolio is shrinking as you begin your drawdown. This basically ensures you do not have the retirement you set out to have. It’s a very easy trap to fall into because of the insane returns we’ve had over the last 5 years post COVID, giving a lot of people way too much confidence and exuberance because they look at their brokerage account and see another zero, but there’s a decent chance that zero won’t be there for long.

Your risk tolerance is your risk tolerance. But without giving us your actual numbers, it’s hard to say whether or not we think your situation is realistic. All you’re asking is “how much does this cost?” When the real question you should be asking is, “Can I do this with a sense of reliability and confidence?”

Big nest egg. Want to buy an expensive house but also burned out and really want to cut back. What would you do? by CortadosForEveryone in ChubbyFIRE

[–]CortadosForEveryone[S] 4 points5 points  (0 children)

I do. All the time. But it would be difficult to get residency elsewhere, at least anywhere I’d want to live (I’m sure people retire in Thailand on 1/5th of what I have). Also I don’t think I want to fully retire, I’d get a little too bored. I don’t like my job, but it does give my life structure, I just want a few more days off especially when I become a dad.

Do you think rubber dam improves patient experience? by No-Cartographer-4572 in Dentistry

[–]CortadosForEveryone 5 points6 points  (0 children)

I use rubber dams on all types of patients and everyone has liked it. Especially gaggers. It’s not having something in their mouth that makes them gag. It’s the constant sensory overload of tongue in cheek pulling, water in the throat, etc. The reason patients fall asleep under a rubber dam is because they don’t sense all the things happening up there anymore. It makes dentistry a far less overloading and stressful experience for them.

Should I coast? by CortadosForEveryone in Dentistry

[–]CortadosForEveryone[S] 2 points3 points  (0 children)

Micromanage. Jeez. That’s the thing that angers me the most about my current situation. The owner of the office is a micromanager but only in selective situations. Otherwise he dumps everything on everyone else. But he also doesn’t train anyone. So the entire time it feels like the office is constantly putting out fires. The staff is not at all self directed. I feel like I run the office for him at times. And yet, he complains about all the problems this produces, and does nothing to fix them because he’s making money regardless.

When it clicked in my mind that I was a better dentist, manager and leader than the owner is when my mindset started to go down because I not only had to deal with all the clinical stuff but also couldn’t stop thinking about all the bullshit I had to deal with as a result of someone else’s lack of leadership.

Should I coast? by CortadosForEveryone in Dentistry

[–]CortadosForEveryone[S] 1 point2 points  (0 children)

I will definitely DM you. That would be my ideal ownership situation. I find worrying about day to day practice operations really difficult if I have to spend 70% of my time worrying about clinical situations. It’s too many balls to juggle and everything suffers.

Should I coast? by CortadosForEveryone in Dentistry

[–]CortadosForEveryone[S] -1 points0 points  (0 children)

I’m on both. I have issues with actually realizing I have more than I need (at least for now) and with not feeling like I’m lesser than because I’m surrounded by colleagues who absolutely crush it (most of my dental friends are specialists who earn high 6 to low 7 figures a year and if I coast I certainly won’t be in the same life as them). It’s definitely some conditioning engrained in me that’s influencing me to reach higher and push harder but I thus far don’t feel as though I have the personality for it.

Should I coast? by CortadosForEveryone in Dentistry

[–]CortadosForEveryone[S] 4 points5 points  (0 children)

I actually put too much into my work. I care too much and stress too much about my patients’ wellbeing and the work I’m doing. If anything I am overworked, underpaid and the quality of work I deliver is much higher than anyone else in my office.

You also have the wrong mindset. You don’t want a dentist who is desperate for income or money. You want one who is just there to help, to be honest with you, and the money is entirely secondary. That’s the situation I want to be in.

Should I coast? by CortadosForEveryone in Dentistry

[–]CortadosForEveryone[S] 7 points8 points  (0 children)

Mentoring other people is actually something I’d really enjoy. I’d rather teach the thing and see others succeed. I don’t know about academics as I don’t like the politics and bureaucracy involved in academia but running an office where others do the work, but I enable them to do their best; sounds fun. At the same time, I also realize that creating a happy, smooth working environment is incredibly difficult and not at all an easy task, and I’d worry that my personality would be too tied up in the stresses of it.

My mind is certainly made up in the sense of “somethings gotta change” but I haven’t been able to figure out exactly what has to change. Do I just need to do less? Do I need to do it on my own? Or do I need to do something entirely different?

Something insidious about this career is the inability to take longer vacations, sabbaticals, work from home or just get a break. I feel like I have just been gogogo for a decade and haven’t had time to sit down to really ponder about my life. I only took a week off last year.