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When calculating an investment for a retirement income the safest way is to look at what you require to live on comfortably eg $30000 per year today. This amount will class you as a low income earner with no tax to pay. $30000 tax free is a lot of money if you don't have a mortgage or children to support and are happy to drive a Fiesta instead of a SUV.
Calculate how much you will need to invest at about 2.5% to return this amount (about $1200000). The difference between what you get as a dividend and this figure will be the CPI that must be reinvested to keep your earnings indexed.
Barry
Last edited by Barrykgerdes; 07-10-2012 at 08:21 AM.
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