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Subject:  Re: Where to start Date:  8/24/1999  7:11 PM
Author:  GrayWulff Number:  96 of 175


I know nothing about Canadian tax laws, but here is a general approach.

1) Estimate your cash requirements as you've already done.

2) Subtract any annuities from your cash needs (Social Security in the USA).

3) Is the remainder more than 4% of your liquid capital? If so either find another source of income or re-budget.

4) Set up a 5 year bond ladder with about 13% or your capital. That is, with $1,000,000 in liquid investments, put $130,000 into bonds.

5 yr: 27,821 (that's a 3% inflator per year)
4 yr: 26,224
3 yr: 25,461
2 yr: 24,720
1 yr: 24,000
Total 128,226

Annual dividend on this ladder would be $7,693 (at 6%)

5) Invest the rema