Budget for retirement

Retirement depends on a formula that goes something like this. Assume a 4.5% yield from the stockmarket. Now look at the table of capital and dividend returns (below) from the All Ordinaries index over the past 40 years.

Forget the capital return – that’s not the focus. In retirement, the focus is on dividends. As you can see, the average contribution to the All Ordinaries total return from compounded