How much money is enough?

How much money is enough?

  • Nothing, I don't need money

    Votes: 5 1.5%

  • R50,000

    Votes: 5 1.5%

  • R100,000

    Votes: 6 1.8%

  • R500,000

    Votes: 0 0.0%

  • R1,000,000

    Votes: 2 0.6%

  • R5,000,000

    Votes: 24 7.3%

  • R10,000,000

    Votes: 52 15.7%

  • R20,000,000

    Votes: 86 26.0%

  • R50,000,000

    Votes: 51 15.4%

  • More than R50,000,000

    Votes: 100 30.2%
  • Total voters
    331
v3gout said:
What a stupid question. Enough for what, exactly?
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I think we've decided what the OP means here is what single lump sum amount (after any tax consideration) paid to you at this point in time would be sufficient for you to live comfortably for the rest of your life.
 
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On R20m, if you structure it correctly you can pay close to 0 tax on the R800k at 4%, and let it still grow.
And if you keep it mostly in usd you should be fine even if zar goes bang.


"Id spend it on booze, birds and fast cars, and the rest Id squander." - George Best.
 
hj007 said:
On R20m, if you structure it correctly you can pay close to 0 tax on the R800k at 4%, and let it still grow.
And if you keep it mostly in usd you should be fine even if zar goes bang.


"Id spend it on booze, birds and fast cars, and the rest Id squander." - George Best.
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How would you structure it?
 
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I assume to calculate your present net worth, you should add up your realisable assets and exclude the house you live in

If you are in the R20m league, I would imagine you have no debt (apart from living expenses)

Also, 4% return is far too low. 10% should be the minimum.
 
Scooby_Doo said:
How would you structure it?
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Well on a scale of worst to best you'd be able to do a max 20% as divi tax.

But using the allowances, R23.8k free interest, plus R95k or so income is tax free using the rebate at 18% tax.

R40k capital gain is free.

So that's about R160k free.

Assumed you'd have maxed out the TFSA and its.grown so the R500k contribution wouldve grown and its withdrawals are tax free.

If you have med aid contributions you can use the med aid allowance part as a tax shield against income.

If you then had that you were selling shares you pay cgt on the gain, so not all taxable and at 40% x marginal rate you'd have a lot lower tax than 20% divi.

All in you could probably get your tax rate to around 10-15% on this and close to 5% if you were splitting it with a spouse, but then perhaps R20m is a bit low. YMMV
 
chrisc said:
I assume to calculate your present net worth, you should add up your realisable assets and exclude the house you live in

If you are in the R20m league, I would imagine you have no debt (apart from living expenses)

Also, 4% return is far too low. 10% should be the minimum.
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Its 4% real.
 
Enough is when you can walk into Woolies and just pick up whatever you want without even looking at the price
 
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ActivateD said:
10M will set me up for life and my children as well.
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fry-not-sure.gif
 
CrypticZA said:
Enough is when you can walk into Woolies and just pick up whatever you want without even looking at the price
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This is actually a really nice answer. When the decision between Woolies and Checkers isn't which one is cheaper. When iOS vs Android or MacOS vs Windows is about which has better features for you, not which fits the budget. When deciding on a holiday destination and it's just about which one has more attractions, not what the flights cost.
 
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