Retiring on a lottery win

[willman]

It is not unreasonable to expect 4%pa from an investment fund.

Higher returns are likely, but let's stay at 4%.

With £1million, that will allow you to draw £30,000 aged 40 and then increase that drawing by 10,000 every ten years and you will still have £500,000 at age 95 and drawing £80,000 pa.

 

If growth is down at 3%, you'll run out just after 80 years old.

At 2%, around 75.

 

The point made recently on some previous lottery winners is that they then want to live like millionaires. A £30 timex isn't any good and it has to be a £5k Tag Heuer as an example.

 

If I was guaranteed an income of £30k per year with no mortgage payments then i'd retire on the £1 million IF we remained in situ.

But if we chose to purchase somewhere else it would need to be 3 million at least - 1 million for a new home for the family and 2 million to live on.

[L00b]

The point made recently on some previous lottery winners is that they then want to live like millionaires.

It's always easier to live like a millionaire on money earned than on money won: because you've learned first-hand what it takes to keep (in) it

 

And the first rule to learn, is the exact same rule as the first rule of Fight Club: you tell no-one, and refuse the publicity stunts, the champagne photoshoots and whatnot. Go for the complete anonymity package.

 

I've actually had arguments with Mrs L00b about that one (because no, I wouldn't tell her either )

 

I'm only semi-joking: like Tim above, and most everybody I suppose, I've had daydreams of 'what to do' about a big win. But everything I've ever envisaged, has always followed the above rule, as a guiding principle. Family and friends wouldn't know. They'd get an anonymous bank draft, or a mortgage anonymously paid, or an anonymous credit at a car dealership, or a well-paid non-exec directorship of a shell company they've never heard of for life (my preferred option), or <whatever>...but they'd never know it was me. Not only for safety's sake, but because money -especially big, sudden, unexpected money- kills family relations & friendships.

Edited October 18, 2017 by L00b

[Padders]

£2m would do it for me. Spend about £500,000 off the bat, live quite comfortably on the rest.

 

And change your name to goldfoilhat.

[Harrystottle]

Depends where you are in your life. In your 20's you'd need a lot more than in your 50's.

Plus, who'd want to retire age 23, for instance?

I am retired and I wouldn't need much at all. Though a chance to show that large amounts of money would not ruin my character would be nice.

[medusa]

We had this discussion recently. We were discussing what it would take to change our lives pretty fundamentally. We reckon that in our case it would take under £1m for us because we have never lived on a high income and £1m that would allow us to spend £300k on a house that has a little more space for what we want to do and then take £30k a year to live on should not take from the capital. Most of my income wouldn't stop because it's what I insured before I got ill, so that would lead to a comfortable life all round, and I don't think that either of us is going to live to be 90, so we could gradually use the capital as living costs increased.

 

Of course, we wouldn't object if we somehow got an obscene amount of money, but it wouldn't take £20m to fundamentally change our lives as we have a very small life.

[Ms Macbeth]

We are already retired and on a fairly low income. We don't have an extravagant life style, a modest, but warm and comfortable home, all paid for, and an elderly car. However, we live comfortably on our income at the moment, just dipping into our savings for the odd holiday or a bit of decorating etc. Lots of expenses are incurred by working people that don't affect us in retirement, like specific clothes, travel costs, a second car, lunches etc.

 

£1m would mean we could upgrade to a bungalow, spend some on holidays, perhaps a new car, and give some to our children. With a more substantial win, we could share it further with family and a couple of close friends. We'd be able to help our grandchildren through education or with housing in the future. Some charities would benefit too.

[northernboy]

I'm obviously really boring but I reckon I'd give up work if I win even half a million. Divide the amount won by the number of years I would have been working and I'd still have more than enough to replace my monthly income even just from living off the capital. To me, the freedom from work is more important than an extravagant lifestyle.

[Cyclone]

1.5 mil will do.

House plus Netflix and games expenses

 

How long would that last?

 

---------- Post added 19-10-2017 at 08:24 ----------

 

If it was something considerably less we'd probably not retire, both of us like our jobs. We'd probably buy a fancier house somewhere central to our jobs and buy more art etc. but other than that not a lot would change I don't think. 10 million gets close to what might enable retirement comfortably, but what would we do with our time? The idea behind the hotel is that we'd have something to keep us occupied if we wanted it.

 

Sounds like you like boating, with 10 million providing income (400k a year), you could quite comfortably afford to do a lot of boat things, but without the massive expense of buying several boats and keeping them crewed...

Just as an example.

 

---------- Post added 19-10-2017 at 08:25 ----------

 

The point made recently on some previous lottery winners is that they then want to live like millionaires. A £30 timex isn't any good and it has to be a £5k Tag Heuer as an example.

 

If I was guaranteed an income of £30k per year with no mortgage payments then i'd retire on the £1 million IF we remained in situ.

But if we chose to purchase somewhere else it would need to be 3 million at least - 1 million for a new home for the family and 2 million to live on.

 

RPI linked 30k/year I hope, otherwise in a relatively short length of time that would start to look pretty pitiful.

 

---------- Post added 19-10-2017 at 08:28 ----------

 

I'm obviously really boring but I reckon I'd give up work if I win even half a million. Divide the amount won by the number of years I would have been working and I'd still have more than enough to replace my monthly income even just from living off the capital. To me, the freedom from work is more important than an extravagant lifestyle.

 

You've not said your approx age, but assuming you just divided up the capital and lived off it, would that take you to stage retirement age, or to some age where you think you'd probably be pushing up daisies?

Edited October 19, 2017 by Cyclone

[tzijlstra]

Sounds like you like boating, with 10 million providing income (400k a year), you could quite comfortably afford to do a lot of boat things, but without the massive expense of buying several boats and keeping them crewed...

Just as an example.

 

Yes, but we'd get bored over time - as I said, we like our jobs, it would take a considerable amount to entice us away from that. I don't know, it is all speculation anyway, didn't win yesterday again!

[Cyclone]

I don't even buy a ticket, so not much chance of winning.