Eureka Correspondence

The millionaire lifestyle, Medibank Private, international investing and more.

I was very interested in the recent article by Scott Francis (Pity the poor millionaire retiree) which suggested that one needed a retirement fund of $1.6 million to maintain a comfortable lifestyle. If I read that article correctly, the purpose of having that level of retirement funding was to enable an income generation of $72,000 per year based on an average 4.5% return on the investment. However does that hypothesis assume that there would never be any allowance for a draw-down on the capital sum invested? If I intended to live forever, I might like to never ever have to draw down on my retirement capital. However I don't think that situation will be the case and I will one day shuffle off my mortal coil when the Good Lord decides that my time is up. I have already given my children their "inheritance" by way of a good education and a financial kick-start when they commenced their working careers. Hence apart perhaps from the stress of watching my retirement capital dwindle, it would not really matter if I had to gradually draw down on my retirement capital so long as there were sufficient bucks in the kitty to pay my funeral expenses when I finally carked it! So in essence, am I correct in my presumption that Scott Francis's analysis assumes that there would never be any draw down on the target $1.6 million retirement capital? I would just like to clarify that point for my own peace of mind. Many thanks for your advice.



{{ twilioFailed ? 'SMS Code Failed to Send…' : 'SMS Code Sent…' }}

Hi {{ user.FirstName }}

Looks like you've already taken a free trial

Please enter your payment details

We have sent you a code via SMS to {{user.DayPhone}}

please enter this code below to activate your membership

We cannot send you a code via SMS to {{user.DayPhone}}

If you didn't receive SMS code please

SMS code cannot be sent due to: {{ twilioStatus }}

Please select one of the options below:

Looks you are already a member. Please enter your password to proceed

Please untick this box when using a public or shared device

Verify your mobile number to unlock a FREE trial

Please sign up for full access

Updating information

Please wait ...

  • Mastercard
  • Visa

The email address you entered is registered with InvestSMART.

Please login or select "Don't know password"

Please untick this box when using a public or shared device

Register as a new member

(using a different email)

Related Articles