BRE you are correct. I've tried to keep the math as simple as possible, hence the small changes in the compounding calculations assuming the interest is paid out daily and not annually in arrears. By the way if one is over 65 the interest exemption is R 27500 for this year. The gist of my argument is that over the long term the share market has outperformed ALL other asset classes. In the short term it will vary amongst shares, property, bonds, cash and gold, BUT in the long term its SHARES that outperform by a long shot. Trying to time your entry and exit points in the various asset classes in the short term is basically impossible. I'm certainly not that clever... not even close. By remaining in the market for the long term I am giving myself the best chance to outperform all other asset classes. IF one uses the US market as an example, dividends make up almost HALF of the market return over the past 100 years. As long as my shares keep compounding their dividends I'm happy. The short term share price movements are not important to me. If anything they are opportunities to buy more high paying dividend shares at lower prices and therefore HIGHER yields.OMO