Quote:
Originally Posted by GGG
We considered the tax in already. 1 million * .04 = 40k per year plus 24k in government subsidies (assuming OAS, married and 800 in CPP between you) gives you 64k or 32k each in income with 10k personal amounts and 25% tax rate you pay 11k in taxes so you have a 53k annual income.
Now Single or Divorced changes it a bit.
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Following this logic, and correct me if I'm wrong GGG, this will result in no impact on the initial 1 million as well. Just working off the 40,000 passive income and 24,000 subsidies minus taxes.
Increase your spending by another 20k annually, and your nest egg will start dropping but it's going to last you another 28 years before it's gone.
EDIT: Oh, 0.04 is your SWR, gotcha. Will depend on circumstances when you retire but really 0.04 is an extremely safe number for typical retirees (read: old folks) and likely results in a higher principal. Of course some emergency spending or poor investments and the numbers change quickly but I'm not sold you need more than 1,000,000 to retire like nik- suggests, at least if you plan on retiring 'soon'.