Hello.  My names Nick.    Im.just after a quick answer or your knowledge on my situation.  Im single 50yrs old.    With $2million in managed funds withing Anz bank. Ive been with them 10yrs now. An average of 8-9% returns. Which included 2007 GFC .  

I have no debts.  Own my house.   Now. If i retire  would it be reasonable to assume a 4% SWR  yearly. Say $7k monlthy withdrawal.  For the next 30-40yrs....  will i still retain my principle ?.  Im asking th

Hi Nick,
Allowing for ups and downs in the markets you invest in, I would expect that you would be able to draw 4% annually and maintain your principle over time. Being 50, the types of products available to you and the tax effect of these may not be ideal.
I would definitely have a full discussion with an experienced financial planner. Paying $7-$10k may save you a small fortune over those 30-40 years. Speak to Nick at OzPlan in Mitcham for a free discussion and you will have a better understanding of what you need to consider.
Best regards
Scott

Hi Nick,

I’m more than happy to talk with you abut what you are looking to achieve, I have many clients in similar position as you.

Drawing $7,000 pa from your capital base isn’t too much of an ask & provided invested appropriately you shouldn’t eat into your capital much, if at all.

The biggest risk you’ll have here is that traditional managed funds sell units to pay your $7,000 per month. Selling is fine when markets are rising, not so much if they are falling as you have to sell more and more units to get that same $7,000 - this depletes your capital very quickly.

The better option is to structure your investments to live mainly off income generation. We have a particular way of doing this for our clients which I’d be happy to show you.

The other thing to be looking at is the structure in which you hold your money. Ideally you should be looking to move some of your capital into the superannuation environment so that you can benefit log term from the tax advantages. Being only 50, if you want to retire now you couldn’t access super so need some money outside of super to live off.

There’s a big discussion needed here. I’m based in the Melbourne CBD but happy to travel to you if we can arrange a mutually agreeable time.

Regards
James

Hi Nick,

I would be interested to hear what managed funds you've been invested in that have returned 8-9% over the past 10 years?

Thanks

Glenn