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Old 11-03-2006
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If one plans to live off the income from investments, keeping the principle intact one needs a large initial capital to get any kind of a decent income. 500K @ 7% yields $35,000 per annum. If however you set up an annuity using an infinite progression, this substantially increases your income because you are also using part of your principle. Theoretically if you lived an infinite number of years your principle would be zero. You can change the progession to what ever number of years you want. The shorter the annuity period the more you get per annum. Visit a financial advisor and he can set this up for you and it's free - well sort of, it won't cost you anything.
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