Quote:
Originally Posted by RichieRich
...at’s the difference between about ~750k (cat food) and ~$2mil+, or $4mil+ (caviar).
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$4M tax-free savings (as in non-RRSP) will get you approximately $200,000 of annual income at 5% dividend which is on the high side, actually. If it is sheltered in RRSP, 50% of it will be taken by the Government in taxes. So, you will need to spend the principal to live bigger in your golden years (thus; reduce your dividend income while doing so). If you plan to live to 85 and leave nothing to anybody and spend all of it, that's averaging $200,000 per year after year 65. Not a small chunk of change by any means, but not a caviar-Ferrari-Four-Seasons-living lifestyle either. Now, devalue your $4M savings by rising inflation and that $200,000 per year will likely be closer to $100,000 in today's money power and quickly get you off that caviar train, unfortunately.
P.S. Don't get me wrong, $4M is still a LOT of money. You just need to see it in perspective.