In my humble opinion - it is quite simple (it's just that we humans try & complicate things). 1) Determine your monthly requirements + add 10% as a "Buffer" *12 months. 2) Increase this by approx 7% per annum (to cover for Inflation).3)"Basic Vehicles" needed to accomplish this financial monthly needs are the following: (a) Rental Properties (at least 3, BUT 4 or more would be even better...at least 60% - 70% of Bonds on Properties must be Paid up!...for tax purposes) (b) A capital sum of at least R1 Million invested in some good "Blue Chip Companies" for the Dividends primarily. Have at least R250 000 as Cash on Hand (for those emergencies & or for those "dips in the markets"). Naturally you must have no other Debt such as motor vehicles/Credit Cards etc ...."Good Debt" would be excellent (more rental properties)......more rental properties. Life Cover naturally in place & perhaps a nice annuity paying approx between R5000 - R10 000 per month would be ideal. Bottom Line = the more rental fixed property you have the safer & smarter & DO NOT keep up with Mr & Mrs Jones next door. Live within your means & be happy. Cheers
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