- 13 August 2006
- Reaction score
Dont forget inflation it will be a killer to most who think they have "enough"
Passive income/s is/are a must.
That's right. In planning for my retirement I factor in 3% inflation. If I estimate a portfolio with a conservative mix of investments (industry super balanced fund, direct shareholdings, property, some cash) will return 7%, I see this as a real return of 4%.
I'm aiming at a min of $80,000/yr for my wife and I to live on so we need 80,000/.04 = $2,000,000 portfolio for retirement. This would keep up with inflation and we wouldn't be drawing down on it, so no danger of outliving it. If something unexpected happened, we would have the fallback of being able to draw down. Otherwise it would eventually be a decent inheritance for the kids.