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Retirement Discussions / Retirement-Soon or Done
|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.
Annual dividend on this ladder would be $7,693 (at 6%)
5) Invest the rema