Originally posted by Kbkiwi
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Puts the money in the bank at 3% - gets $45k/year.
Pays tax on that at say 17% leaving him with $37350 or $718/week.
Of course he does need to allow for rent cost inflation on that money he has in the bank.
People keep saying they'll put their rents up and it seems to be running at 5% or so.
So with the money in the bank he needs it to grow at the same rate after tax and before he spends any so the 3% interest won't cover it.
Each year it will get more difficult to pay his rent.
He could downsize - or even move towns which is probably more viable.
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