Well, on around R6,000 income p/m do not pay tax anyway - well, beside 15% on dividends then 14% vat when I buy something - plus a couple of extra taxes here and there - like rates, which they then chuck vat on top.
But for me, what I like about the dividend way is that there is no thinking involved - I collect all the dividends for a year, and that's all the money I have for the following year. Easy. Never going to run out and as I am only 40, this could go on for a while. At the worst I might have to cut back spending or even find a part time job - but should be ok. But certainly do not have to worry if my capital will last - which would be a big worry for me. Also never have to worry about when/what shares to sell because guaranteed I will sell at the wrong time..
Actually, becomes I make so little REITS are pretty much tax free for me.
But back to you - 8% is fairly high just out of dividends - the good thing is that most out strip inflation. Some that have not, for me so far - VOD, Nampak, CML. Two that pay really good dividends - often pay out specials - AVI and MMI. Good smaller property payers, but boring - SA Corp and Arrowhead A.
Still, I would really think about taking a lot of your cash out - I guess you could invest in any european market? Because throwing in the devaluation of the rand really makes future projections quite hard when you need euros - we only need them for holidays!
Good place to browse. There are EU etf's paying around 4.2% yield but I am sure you could get 5-6% with your own selection.
http://www.topyields.nl/top-dividend-yields-of-europe-africa.php (but some are because the share price has tanked/ so you do need to research..)
