Entropy
Some good ideas there where you want to invest, I would personally probably just have someone invest the money for me so I didn't have to worry about it. You don't have to pay capital gains in a country where you invest your money, so there would be no CGT charge in those countries where you have invested your money only in the US.
Reaper23
Simple example you have £10,000 and you take £1,000 of this a year to spend to live on which is essentially your salary there are no taxes to pay on this £1,000 as it's already your money. You will have to pay taxes on dividend income and any CGT profits although you can make up to a certain amount tax free, here in the UK you can make just over £10,000 a year tax free as a capital gain.
Tigre
Pretty much same as above this is why the assumption is that you can take 4% of capital even though on average you should be earning a higher rate on your money that this.
Lemmo
I believe the 4% figure is calculated on average returns over time minus inflation and the taxes you would pay on capital gains and income tax. Of course you can work if you want but I'd much rather be financially independent at an earlier age rather than the traditional retirement age thinking and only work if I want to rather than because I have to.
Some good ideas there where you want to invest, I would personally probably just have someone invest the money for me so I didn't have to worry about it. You don't have to pay capital gains in a country where you invest your money, so there would be no CGT charge in those countries where you have invested your money only in the US.
Reaper23
Simple example you have £10,000 and you take £1,000 of this a year to spend to live on which is essentially your salary there are no taxes to pay on this £1,000 as it's already your money. You will have to pay taxes on dividend income and any CGT profits although you can make up to a certain amount tax free, here in the UK you can make just over £10,000 a year tax free as a capital gain.
Tigre
Pretty much same as above this is why the assumption is that you can take 4% of capital even though on average you should be earning a higher rate on your money that this.
Lemmo
I believe the 4% figure is calculated on average returns over time minus inflation and the taxes you would pay on capital gains and income tax. Of course you can work if you want but I'd much rather be financially independent at an earlier age rather than the traditional retirement age thinking and only work if I want to rather than because I have to.