Context
- $7M+ NW, mid 40s, spouse and 2 kids in middle school.
- NW distributed as 75% broad market index funds, 15% house equity, 15% cash. I have never invested in bonds, and do not anticipate being ready to start that now. Cash has built up due to a large severance payment and not investing new money for about 1.5 years.
- Yearly combined comp $800K+ with my comp about 80% of it in big tech. This is a new thing, we were making 300-400K for the last 10 years.
- Zero debt. Grew up poorer than dirt, always LBYM. Yearly expenses are ~$70K in a HCOL area.
- Okish spending money, admit that we could spend more. We both need to see value in the money spent though. For example, fine staying in an ok hotel at $200 a night versus a more luxurious one at $400 a night even though the additional cost is (probably?) inconsequential. Mow my own lawn since mowers want $75+ and it takes me 45 mins to DIY even though I get zero enjoyment from it.
We're thinking of moving from the States to Canada for family reasons. Anticipating $2.5M+ CAD for a house in a location that works for us. As part of the move, total yearly comp would likely drop to ~$500K USD.
Questions:
- How would you feel about the financial situation given that stock market "could" drop 50% or more. The tech gravy train could end at any moment. More than half of my future comp is tied up in RSU stocks that vest monthly over a 4 year period.
- Don't troll or judge please [not flexing or anything like that], logically feel ok financially. Emotion is a different story. Spending 2.5M+ on a house is more than I'd ever dreamed realistic. Spending more than $5K on a family of 4 vacation is a difficult mental hurdle. Buying a vacation house seems amazing in theory, but a burden and risky in practice. Is it really ok to open up the purse strings to luxury? If you've been in the same position with similar poor kid background, did you ever get over the poor kid mentality, always hustling, optimizing costs, DIY, discount codes, $ as a primary factor in decisions etc? If so, how??
- How the heck do canadians afford $1M+ houses when the average income is so low comparatively to the US?
- How to move millions of dollars from USD to CAD in an exchange rate/tax efficient way?