Would A Million Pound Gor Far?

[Tipstaff]

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. 👍

[Lionel Richtea]

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!

[cgksheff]

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.

[amazon123]

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?

[cgksheff]

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.

[Lionel Richtea]

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".

[sedith]

£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.

[hackey lad]

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  😁

[ECCOnoob]

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

[sedith]

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.