Here's an interesting article that goes a little more in depth about living off capital and he talks about this 4% figure: http://www.thesimpledollar.com/2009/12/1...f-capital/
Entropy I was pretty certain that you only pay CGT in your own country, I just had a quick search and the facts seem to back this up, it's only if you have some form of residency in another country that you would have to pay CGT in that country and even then you wouldn't get doubly taxed in both countries.
As to this 4% spending figure, this will probably vary by where you live, in the UK CGT is currently 29% which is a big difference from the US rate of 15%, this would make a huge difference to your investments over a long period of time.
Entropy I was pretty certain that you only pay CGT in your own country, I just had a quick search and the facts seem to back this up, it's only if you have some form of residency in another country that you would have to pay CGT in that country and even then you wouldn't get doubly taxed in both countries.
As to this 4% spending figure, this will probably vary by where you live, in the UK CGT is currently 29% which is a big difference from the US rate of 15%, this would make a huge difference to your investments over a long period of time.