Tipstaff Posted April 28, 2022 Share Posted April 28, 2022 1 minute ago, Rockers rule said: Get in line Tipstaff. Tickets on for tonight's Euro £133 million ✔️. Keep safe out there and gamble responsibly . I’m going to buy one right now. 👍 Link to comment Share on other sites More sharing options...
Lionel Richtea Posted April 28, 2022 Share Posted April 28, 2022 9 hours ago, cgksheff said: Invested in a managed fund would give you at least 5% and more likely 10%. So interest alone would give you £50k per year and a growing capital pot to keep up with inflation (allowing increased drawdown in future). Plenty to retire on. Some things to consider, given these people were in their mid 20s 1) They also planned to buy a house 2) You are planning a family and will have to pay for all that palaver More importantly: 3) 5% return risk free was unobtainable even then. If you are being offered 10% risk free it's a Ponzi 4) If you take out the 5% a year, then your 1m is deflating each year at whatever RPI / inflation is. At the moment, your 1m will be worth ~940k in 12 months and so on and so forth.... by the time they would be 50, that 1m in "real terms" ain't 1m anymore.. The return achieved needs to be a percentage over and above RPI / inflation in order to preserve the value of the principle. 5) This is exactly why I asked the question of a junior banking applicant - good work there on point 4! Link to comment Share on other sites More sharing options...
cgksheff Posted April 28, 2022 Share Posted April 28, 2022 1 hour ago, Lionel Richtea said: Some things to consider, given these people were in their mid 20s 1) They also planned to buy a house 2) You are planning a family and will have to pay for all that palaver More importantly: 3) 5% return risk free was unobtainable even then. If you are being offered 10% risk free it's a Ponzi 4) If you take out the 5% a year, then your 1m is deflating each year at whatever RPI / inflation is. At the moment, your 1m will be worth ~940k in 12 months and so on and so forth.... by the time they would be 50, that 1m in "real terms" ain't 1m anymore.. The return achieved needs to be a percentage over and above RPI / inflation in order to preserve the value of the principle. 5) This is exactly why I asked the question of a junior banking applicant - good work there on point 4! My funds have been averaging 12% over the last 10 years . My principle is growing quite nicely, but after a point will no longer need to be maintained. Millions of people manage to buy a house on an annual income if far less than 50k. Link to comment Share on other sites More sharing options...
amazon123 Posted April 29, 2022 Share Posted April 29, 2022 15 hours ago, cgksheff said: My funds have been averaging 12% over the last 10 years . My principle is growing quite nicely, but after a point will no longer need to be maintained. Millions of people manage to buy a house on an annual income if far less than 50k. That's an excellent and - I would guess - quite unusual level of return on your investments? You certainly couldn't expect to see that. Don't they say 4% as a safe income? Link to comment Share on other sites More sharing options...
cgksheff Posted April 30, 2022 Share Posted April 30, 2022 19 hours ago, amazon123 said: That's an excellent and - I would guess - quite unusual level of return on your investments? You certainly couldn't expect to see that. Don't they say 4% as a safe income? Yep. I am drawing down at 4%/5% and watching the principle grow. This is in Stocks/Shares managed funds with a mainstream provider at the medium risk level (choice from low/medium/high risk). So not really unusual. Took a "COVID" hit but climbed back (at times over 16%) to keep the 10 year average on track. Link to comment Share on other sites More sharing options...
Lionel Richtea Posted May 1, 2022 Share Posted May 1, 2022 On 29/04/2022 at 09:13, cgksheff said: My funds have been averaging 12% over the last 10 years . My principle is growing quite nicely, but after a point will no longer need to be maintained. Millions of people manage to buy a house on an annual income if far less than 50k. The key words here are "risk free". Link to comment Share on other sites More sharing options...
sedith Posted May 1, 2022 Share Posted May 1, 2022 £1m is not a lot these days. You'd pay £0.5m for a detached bungalow where I live. New car 40k, it soon starts depleting the original capital. Live in greater London you'd be paying around that for an apartment. Link to comment Share on other sites More sharing options...
hackey lad Posted May 1, 2022 Share Posted May 1, 2022 4 hours ago, sedith said: £1m is not a lot these days. You'd pay £0.5m for a detached bungalow where I live. New car 40k, it soon starts depleting the original capital. Live in greater London you'd be paying around that for an apartment. Show off 😁 Link to comment Share on other sites More sharing options...
ECCOnoob Posted May 1, 2022 Share Posted May 1, 2022 (edited) 4 hours ago, sedith said: £1m is not a lot these days. You'd pay £0.5m for a detached bungalow where I live. New car 40k, it soon starts depleting the original capital. Live in greater London you'd be paying around that for an apartment. Yes it could buy you a London apartment, but as I said earlier it could equally by someone a 6-7 bedroom home a short tube ride out of town. Depending how extravagant one wants to be, a million-pound used carefully and invested wisely could let someone live modestly comfortably without the burden of work for the rest of their lives. On the other hand, if someone's wants to blow it all on trinkets and luxuries that's their choice and it will soon fritter away to nothing. Like everything, it may not be necessarily as 'valuable' as in the past, but let's not be silly and pretend a million-pound is still not a potentially life-changing amount of money. Edited May 1, 2022 by ECCOnoob Link to comment Share on other sites More sharing options...
sedith Posted May 2, 2022 Share Posted May 2, 2022 18 hours ago, hackey lad said: Show off 😁 Not a show off at all, the equity won't benefit me, just my son. If I sold my house I would have to pay more for a new property, plus stamp duty. The trouble where I live is the youngsters have no prospect of getting on the property ladder where 200k is considered affordable housing. I'm afraid its not affordable housing in my book! In the south west wages are generally basic living wage, so on 10 quid an hour who is going to get a mortgage for 200k? Its all wrong. Link to comment Share on other sites More sharing options...
Recommended Posts
Create an account or sign in to comment
You need to be a member in order to leave a comment
Create an account
Sign up for a new account in our community. It's easy!
Register a new accountSign in
Already have an account? Sign in here.
Sign In Now