Capital Required for Income
This chart shows how much capital is needed to generate an annual income.
| Alberta |
|
60,000
Taxable Income
Enter the taxable income amount from line 260 of your personal income tax return. |
| Taxes payable |
11,933
|
| After-tax income |
48,067
|
|
50,000
Annual Income Need
Enter the after-tax annual amount of income you want the capital to generate. |
|
2.00%
Indexed at
Enter the inflation rate that you want the income indexed to.
Input Error: Indexed At
Enter a value between % and %. |
|
25
|
|
6.00%
Input Error: Rate of return
Enter a value between % and %. |
|
Rate of return breakdown:
|
Rate of return breakdown
This shows how the rate of return for the taxable investment is broken down between Interest, Eligible Dividends and Capital Gains. For example, the return on a savings account would typically be 100% interest. The return for a mutual fund with stock and bond holdings could be made up of Interest, Eligible Dividends and Capital Gains. |
Interest
|
33.33%
|
|
33.33%
|
| Capital Gains |
33.40%
Input Error: Rate of return breakdown
The percentage figures for interest, dividends and capital gains do not add up to 100%. Please correct your entries. |
Pay down debt
Not Indexed
Indexed
Assumptions
The annual income is paid at the beginning of the year.
Calculations use marginal tax rates as of in .
Rates take all federal and provincial taxes and surtaxes into account and the basic personal tax credit.
The taxes on the rate of return are calculated using these marginal tax rates:
Disclaimer
The annual income is paid at the beginning of the year.
Calculations use marginal tax rates as of in .
Rates take all federal and provincial taxes and surtaxes into account and the basic personal tax credit.
The taxes on the rate of return are calculated using these marginal tax rates:
Disclaimer
