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Thursday, 12 Sep 2019
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Penniless At 100 Is The New Black

Let's take a baseline retiree as an example – An 80-year-old Australian couple with $1m to live off in a house with no mortgage in a zero tax environment.

They hold the classic Australian equities portfolio that averages out to a yield of around 4.5% plus average market franking (about 72%) taking it up to 5.89%. They have instructed all the companies they own to pay their dividends into a specific bank account, and they live off that bank account, about $45,000 a year plus an annual ATO cheque for somewhere between $10,000 to $15,000 depending on the franking. They have mostly banks, Telstra and hybrids. They are hopeful the bank sector will come right, and they will “be alright in the end”.

For this couple, there are several issues

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