Hi,
Since no one has taken a stab at this. I`d like to give it a shot. When your retired, your investment goals are usually to have an income while keeping invested in something safe, secure and less risky. Your time horizons are now short and therefore can`t afford any major losses at this stage.
Here`s one option to achieve that goal:
Be invested in a conservative or moderately balanced non-registered mutual fund that gives out a 6% return of capital (ROC) cash distribution.
Ex. $800,000 (investment)
x 6% (ROC - return of capital cash distribution)
= $4,000 / month
Here`s why:
- by keeping it in a conservative fund, you achieve your first objective which is security and safety
- 6% cash distribution is conservative, you are not dipping into your capital
- 6% will give your investment a chance to grow while receiving a monthly income
- ROC return of capital, allows you to tax-defer the $4,000/mo withdrawal (no tax today... pay capital gains later)
This is just a strategy, I hope you get the concept of it. Ofcourse, you must talk to a qualified financial planning professional before implementing this strategy. This is just one of perhaps many that you can do when you`re retired. I`m hoping our real estate experts will tell us there strategy in the real estate arena with regards to retiring.