Good feedback so far, I was hoping our (very different) retirees would pop in. Orca you're retired too, any thoughts? I won't ask jaDEB because he might suggest putting it all into one share or onto the roulette wheel
I have some more info from the sender
From a rough budget that has been done it appears that R10k would be the monthly amount needed to cover:
Accommodation
Medical Aid
Gap cover
Insurance
Car running costs
Food
Personal items
Plus a small discretionary surplus
and Tax (my calculations after deductibles show close to breakeven for full tax year)
My rough calculations are as follows:
Assumptions
Investment Draw Per Annum Per Month
Annuity 2000000,00 4,00% 80000,00 6666,67
Deferred 375000,00 4,00% 15000,00 1250,00
95000,00 7916,67
Yield per annum Per Annum Per Month
Other?? 900000,00 7,50% 67500,00 5625,00
7 day a/c 100000,00 6,35% 6350,00 529,17
73850,00 6154,17
The Pension is currently with Sanlam (Her company's choice for staff) but split in (I believe) two different investments of her choice.
The question really is :
- Should one leave it at Sanlam (Life or Living annuity) or move it elsewhere to reduce costs (to the best of my knowledge Sanlam insist on a financial advisor and charge admin fees)
- Where to put the R900K (R1mil-R100K)