She owns her condo outright and has recently purchased a preconstruction investment property to help fund her retirement. Her annual after-tax expenses are currently met by her salary and some investment income. Gina’s intention with the investment property is to use the rental income to supplement her retirement income. “A well-balanced portfolio of about 20 stocks is enough to diversify away the maximum amount of market risk,” Thompson says. Assuming a 4 per cent rate of return on her investment portfolio, Gina will generate $29,040 in annual income, Thompson calculates.

Source: thestar June 12, 2017 09:56 UTC