That example is both fascinating and reassuring Marc. Thanks for sharing.You are of course correct. I wasn't focusing on the exact mathematics more the practical principles.
We like to paint pictures to illustrate the points. This is a real client's ARF account over the last 5 years. The original capital is the red line showing the annual distributions coming off each year and the blue line is the account value. Working perfectly...
Best options for short term liquidity is still State Savings I recently updated my analysis here
How do I get the best return on my savings?globalwealth.ie
to reflect the new less attractive, but still relatively good (compared to the bank) terms
Longer-term taxable investment accounts are best managed with a pure equity portfolio of non-EU ETFs and dial down the risk in the pension to accounts to compensate
In our experience, many investors find it difficult to achieve the returns that the markets offer over time due to an improper understanding of investment risk, costs and taxes. If you have a lump sum to invest we aim to help you to earn the return you are entitled to for the risks you take...globalwealth.ie
What income are they drawing from it?