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Shares / Re: Help with calculations!
« on: August 28, 2018, 08:51:22 pm »So maybe what I must do is : ( with the example amounts mentioned )
1. Start retirement with 4% draw down , say R45000 /month
2. Open a savings account with 6 x monthly expenses (6 x R 45000 = R 270 000 )
3. After year 1, give yourself an increase on R45000 using the previous year inflation rate and draw that form your retirement money.
4. Repeat.............
5. If you have a surplus in any year , put it into the Savings account ( do not use it )
6. If you short money in , say year 5 , draw from your savings. Not from your LA
7. That should smooths your draw down , and keep the retirement value to do its thing ( up and down )
8. And hope your savings account stays positive
9. Focus on managing your retirement fund
Thanks for the reply.