Could you retire on £1m

[Ja Salford Blue]

ha ha good shout lads!

well I have just re evaluated my dream!

I wouldnt buy the big gaff I would stay where I am ha!

But thinkong about it, If your main abjective was just give up work, the interest would be approximatley £25-30k per year. Someone who earns lets say £40k per year will walk away after tax with about £30-32k per year.

I think the average man in the street could eaisly 'retire' on £1m and live a comfortable life.

 

[SWP's back]

Yes you could, if you are happy to rent and live off £50k per year tax free (Equivalent to earning arounf £80-90k).

You would just invest it into a Income Distribution Bond (simple Capital Investment Bond with option to take yearly, bi-annual, quaterly or monthly distributions), you are allowed to take 5% per year (monthly if you wish) tax "free" as it is deemed a return of capital. Historical returns see 7-9% pa, so your capital is not eroded, over the long term and the money would easily outlast you so long as you stick to 5% pa.

-- Fri Dec 02, 2011 11:42 am --

No.

Course you could and you know it.

No bro the only reason you are able to "live" on what you earn is because you never got it all in one lump sum.

£1000000 is easy to spend you would buy family gifts, spend on things you would never have bought before. Its not suprising that lottery winners spend it all because they get it all in one go

Now if its a million over 30 years at 30 odd thousand a year then sure I can live on it but not retire on it and id be in my late 50s when it finished so id keep working.

But they don't though. Most look after it very wisely after taking advice. Only twats spend it all and have none left.

-- Fri Dec 02, 2011 11:43 am --

For it to last you and your family would have to live on about £25 000 a year for the next 40 years.

You're figures are wrong "bro".

-- Fri Dec 02, 2011 11:44 am --

Not a dream
a delusion

Invested a million would bring in £30K before tax as already said.
Take the £30K as income and your million is deteriorating in value at (currently) over 5% a year.

What? Absolute and utter bollocks. Complete horse shit mate.

 

[metalblue]

It's possible, a worker on average pay will probably take home about £1m in their working lives so with a few risk(ish) free investments you could get ahead of the game.

me? i'd blow £900k on tarts and cars in less than a year, the rest i would waste.

 

[smudgedj]

Easy to retire on that. I retired at 40, with a pension of 10,000 a year. Having said that it depends where you want to live, if your married and have kids. I would have struggled in the Uk.

It wouldn't have worked in England or Europe but there are so many countries where it would, you don't need to live in England. I traveled around until I found somewhere I liked and gave it a try for 3 months then moved on somewhere else and tried that.

 

[Stato]

It's possible, a worker on average pay will probably take home about £1m in their working lives so with a few risk(ish) free investments you could get ahead of the game.

me? i'd blow £900k on tarts and cars in less than a year, the rest i would waste.

you fat bastard that is a lot of tarts.

 

[BoyBlue_1985]

At 26yrs old its going to be practically impossible for me to retire on £1 million.
I read an article the other day that said if you have £1 million in cash you cant even really be classed a millionaire well you can but you wont have the jet set lifestyle of a millionaire

 

[daveduke67]

Yes you could, if you are happy to rent and live off £50k per year tax free (Equivalent to earning arounf £80-90k).

You would just invest it into a Income Distribution Bond (simple Capital Investment Bond with option to take yearly, bi-annual, quaterly or monthly distributions), you are allowed to take 5% per year (monthly if you wish) tax "free" as it is deemed a return of capital. Historical returns see 7-9% pa, so your capital is not eroded, over the long term and the money would easily outlast you so long as you stick to 5% pa.

-- Fri Dec 02, 2011 11:42 am --

Course you could and you know it.

No bro the only reason you are able to "live" on what you earn is because you never got it all in one lump sum.

£1000000 is easy to spend you would buy family gifts, spend on things you would never have bought before. Its not suprising that lottery winners spend it all because they get it all in one go

Now if its a million over 30 years at 30 odd thousand a year then sure I can live on it but not retire on it and id be in my late 50s when it finished so id keep working.

But they don't though. Most look after it very wisely after taking advice. Only twats spend it all and have none left.

-- Fri Dec 02, 2011 11:43 am --

For it to last you and your family would have to live on about £25 000 a year for the next 40 years.

You're figures are wrong "bro".

-- Fri Dec 02, 2011 11:44 am --

Not a dream
a delusion

Invested a million would bring in £30K before tax as already said.
Take the £30K as income and your million is deteriorating in value at (currently) over 5% a year.

What? Absolute and utter bollocks. Complete horse shit mate.

Re the income bond. Assuming that the bond did manage a return of 7%, you take 5% of that leaving a growth of 2% on the initial capital invested.

What would that make the bond worth in, say, twenty years? Would 5% of that value buy you the same as it would today. Would your initial investment in 2031 be able to buy you what a million would today? This is assuming that returns have exceeded withdrawals - historically has this always happened?

What has the average investment bond returned the last five years? Would you advise that someone invest 100% of their capital in one type of risk based investment - nothing in no risk savings accounts?

Surely it'd be better to spread the capital into various risk categories and investment types rather than all the eggs in one basket?

 

[BoyBlue_1985]

I know what you mean GSC, but I think i could eaisly retire on £1m.

I have been thinking about it.

I would buy a nice £500k gaff somewhere in Worsley, but I would get it on a Mortgage over say 15years. The intrest alone would pay the monthy payments. then in 15 years I would still have a large lump sum + a £500k house paid for.

pay off the mortgages for my 2 sisters and mam and dad, and throw a few quid their way.

I would also by myself a nice little villa in Spain or the Canaries and spend my time taking Ryan air flights between them.

add a couple of nice cars (again on finance) Range Rover and Golf R32 for over here and a nice 3 series BMW at the villa.

a couple of corperate season tickets at City

and I think I would open a couple of small businesses maybe car valleting, outside catering, contract cleaning, landscape gardening etc. Just to keep busy. and put a couple of close friends / family in charge of them.

One thing is for certain, I certainly wouldnt be working again!


thats my little dream!

Range Rover = 90k, R32 =25k. BMW 3 series = around 30k all in all 145k just on motors. At current rates about 5k a year insure all of them. Mortgages + interest payment at least 250k for all 3, villa in Spain/canaries 145/190k

I would say you be back in work within 4 years mate

 

[Ja Salford Blue]

I know what you mean GSC, but I think i could eaisly retire on £1m.

I have been thinking about it.

I would buy a nice £500k gaff somewhere in Worsley, but I would get it on a Mortgage over say 15years. The intrest alone would pay the monthy payments. then in 15 years I would still have a large lump sum + a £500k house paid for.

pay off the mortgages for my 2 sisters and mam and dad, and throw a few quid their way.

I would also by myself a nice little villa in Spain or the Canaries and spend my time taking Ryan air flights between them.

add a couple of nice cars (again on finance) Range Rover and Golf R32 for over here and a nice 3 series BMW at the villa.

a couple of corperate season tickets at City

and I think I would open a couple of small businesses maybe car valleting, outside catering, contract cleaning, landscape gardening etc. Just to keep busy. and put a couple of close friends / family in charge of them.

One thing is for certain, I certainly wouldnt be working again!


thats my little dream!

Range Rover = 90k, R32 =25k. BMW 3 series = around 30k all in all 145k just on motors. At current rates about 5k a year insure all of them. Mortgages + interest payment at least 250k for all 3, villa in Spain/canaries 145/190k

I would say you be back in work within 4 years mate

ha ha but i didnt say which year mate! I was thinking 'L' reg Range 51 plate R32 and the old 'D' reg convertable!

ha ha I fucked up on my figures!

Like I said it was just a dream!

 

[BoyBlue_1985]

I know what you mean GSC, but I think i could eaisly retire on £1m.

I have been thinking about it.

I would buy a nice £500k gaff somewhere in Worsley, but I would get it on a Mortgage over say 15years. The intrest alone would pay the monthy payments. then in 15 years I would still have a large lump sum + a £500k house paid for.

pay off the mortgages for my 2 sisters and mam and dad, and throw a few quid their way.

I would also by myself a nice little villa in Spain or the Canaries and spend my time taking Ryan air flights between them.

add a couple of nice cars (again on finance) Range Rover and Golf R32 for over here and a nice 3 series BMW at the villa.

a couple of corperate season tickets at City

and I think I would open a couple of small businesses maybe car valleting, outside catering, contract cleaning, landscape gardening etc. Just to keep busy. and put a couple of close friends / family in charge of them.

One thing is for certain, I certainly wouldnt be working again!


thats my little dream!

Range Rover = 90k, R32 =25k. BMW 3 series = around 30k all in all 145k just on motors. At current rates about 5k a year insure all of them. Mortgages + interest payment at least 250k for all 3, villa in Spain/canaries 145/190k

I would say you be back in work within 4 years mate

ha ha but i didnt say which year mate! I was thinking 'L' reg Range 51 plate R32 and the old 'D' reg convertable!

ha ha I fucked up on my figures!

Like I said it was just a dream!

Blimey you get an L reg Range Rover will cost you 90k in repairs, lol