Trav Le Bleu Posted 18 June 2011 Posted 18 June 2011 I saw on the news that it was being touted that you couldn't. Myself I think that this is probably just the delusion of financial advisors living in London in very comfy surroundings. I think that it'e entirely possible that a person could live their whole life off of a £1,000,000, even a couple or a small family, without having to work. You just wouldn't be able to live the life of a millionaire - then it would go pretty quick. I think you could live in very reasonable comfort from £1,000,000. Assume you buy a 3 Bedroom house - nothing too ambitious, but sufficient for a small family. These days you can get a fairly decent semi for £200,000 in Leicester easily. That would leave you with 800,000. I know that high interest accounts aren't what they used to be, but you can still get 3% (pathetic I know. Back when I worked for Nasty West there were10% interest accounts.) So that would give you interest-wise £24,000 a year. Not great, but to ofset that, your home has been already paid for - no mortgage, no rent - so you're going to be saving several thousand against what most people are spending in a year. Given that £24,000 is more than a lot of couples live off (and not forgetting mortgage/rent free) I reckon that it's entirely possible. You just wouldn't be the last of the big spenders. The only problem I could see would be is that £24,000 in 30-40 years time wouldn't be worth as much, but as you got older you could start digging into the 800,000... or not take £24,000 in the early years to build up the pot a little. It's doable.
MikeyT Posted 18 June 2011 Posted 18 June 2011 I'd certainly try. Surely could live off the interest if you didn't spend stupidly on things.
Trav Le Bleu Posted 18 June 2011 Author Posted 18 June 2011 I'd certainly try. Surely could live off the interest if you didn't spend stupidly on things. I just saw you post about Bono throwing you a million in the Richest popstars thread and nearly linked it here
MikeyT Posted 18 June 2011 Posted 18 June 2011 I just saw you post about Bono throwing you a million in the Richest popstars thread and nearly linked it here You know what, i thought exactly the same thing.
Trav Le Bleu Posted 18 June 2011 Author Posted 18 June 2011 You know what, i thought exactly the same thing. Scary innit!
Bellend Sebastian Posted 18 June 2011 Posted 18 June 2011 Here's some numbers: http://news.bbc.co.uk/1/hi/business/8356669.stm I think you'd be alright if you've got some discipline. If you invested it in some things other than cash, for example property to rent, and our old friends stocks and shares, you can get a better income yield and be less likely to eat into the cash itself. It really depends on what sort of a lifestyle you aspire to. My other half and I are buying another house soon, and when I saw what our combined incomes are I thought I should feel a lot wealthier than I do - if we had to live off £24,000 between us, even with the mortgage paid off, I'm not sure how easy that would be
Zingari Posted 18 June 2011 Posted 18 June 2011 i reckon it's do able if you invested it into property to rent you could get 5 or 6 reasonable properties (plus your own) and live on the income for a few years, then gradually sell them as you want to release the capital to gradually get a better lifestyle as you get older
Bellend Sebastian Posted 18 June 2011 Posted 18 June 2011 On reflection, if I didn't have to work and had a roof over my head I'd happily spend the rest of my days living on beans on toast and Tunnocks Teacakes
AoWW Posted 18 June 2011 Posted 18 June 2011 I've expensive tastes. And a cat who'll now only eat premium foods.
Jon the Hat Posted 18 June 2011 Posted 18 June 2011 I could yes. Your average bloke in the street, probably not. £1M buys you even these days about £6M of property leveraged and I could work with that. Also I would develop not just sit on it. A lot of people who just sit on it and eke it out or blow it quick. Al though to be honest I quite like my job, so I would probably blow £750k on a nice house (VERY easily done round my way) and keep working. I earn enough to support that no problem.
Fox92 Posted 18 June 2011 Posted 18 June 2011 My mate from college who is the same age as me won Thunderball last week, he won 500k. Now I asked him do you need to go to work still, can you live off it? He said no, and I know its half of a million, but if I won either I think I'd be able to live off it. Mainly because I am not stupid with money, some people say I'm tight but I think theres a difference with buying stupid things and generally saving cash for another day. Therefore, I wouldn't buy stupid things if I had the million. I'd just go for the things I have always wanted, a big house, swimming pool, dazzling car, ice cream machine etc. I would most probably move abroad though.
Matt Posted 18 June 2011 Posted 18 June 2011 Yes, Live off the interest. I'm not greedy, i'd happily live off £500,000, and work part time.
Trav Le Bleu Posted 18 June 2011 Author Posted 18 June 2011 My mate from college who is the same age as me won Thunderball last week, he won 500k. Now I asked him do you need to go to work still, can you live off it? He said no, and I know its half of a million, but if I won either I think I'd be able to live off it. Mainly because I am not stupid with money, some people say I'm tight but I think theres a difference with buying stupid things and generally saving cash for another day. Therefore, I wouldn't buy stupid things if I had the million. I'd just go for the things I have always wanted, a big house, swimming pool, dazzling car, ice cream machine etc. I would most probably move abroad though. That's the most telling thing that you said there. There are other countries where 1,000,000 of her majesty's finest pounds will go a looooooooong way!
Webbo Posted 18 June 2011 Posted 18 June 2011 Don't forget you have to pay tax on the interest earned. Plus it's not just a house you'd want, you'd want a decent car and a good holiday every year otherwise what would be the point of being a millionaire?
Trav Le Bleu Posted 18 June 2011 Author Posted 18 June 2011 Don't forget you have to pay tax on the interest earned. Plus it's not just a house you'd want, you'd want a decent car and a good holiday every year otherwise what would be the point of being a millionaire? The £24k is more than I earn before tax is deducted off my wages. What's not to lose?
Webbo Posted 18 June 2011 Posted 18 June 2011 The £24k is more than I earn before tax is deducted off my wages. What's not to lose? Would I still get my family tax credits?
MPH Posted 19 June 2011 Posted 19 June 2011 you could easily live off it. 1m based at 6% interest gives you just over 61k p/y and that's just if you invest it into a high interest bank account rather than an investment company who would give you a much higher interest rate.. with it not necessarily being high risk... that's just over 5,000 a month. You wouldn't need to buy a house but get a mortgage on a big place for ... what.... 1500 a month... that would get you a 360k mortgage spread over 25 years.. that gives you still 3,500 a month to play with... and your 1,000,000 hasn't even been touched....
skinnydipper Posted 19 June 2011 Posted 19 June 2011 Of course not.. It would barely cover the staff's Christmas tips.
Bellend Sebastian Posted 19 June 2011 Posted 19 June 2011 you could easily live off it. 1m based at 6% interest gives you just over 61k p/y and that's just if you invest it into a high interest bank account rather than an investment company who would give you a much higher interest rate.. with it not necessarily being high risk... that's just over 5,000 a month. You wouldn't need to buy a house but get a mortgage on a big place for ... what.... 1500 a month... that would get you a 360k mortgage spread over 25 years.. that gives you still 3,500 a month to play with... and your 1,000,000 hasn't even been touched.... 6 per cent? Let us know who you bank with!
Sly Posted 19 June 2011 Posted 19 June 2011 It depends where you live really. Here in the Midlands, you'd live quite nicely I believe.
MPH Posted 19 June 2011 Posted 19 June 2011 6 per cent? Let us know who you bank with! you'd get 6% if you turned round to them and told them you got 1m to invest. Believe me.
Alexikokopops Posted 19 June 2011 Posted 19 June 2011 you'd get 6% if you turned round to them and told them you got 1m to invest. Believe me. Tax free?
SOCCERROO FOX Posted 19 June 2011 Posted 19 June 2011 The way i live my life i'll be lucky to have 10 years left to live so that is 100,000 a year and converted in to Aussie $ about 160,000 a year.......job done.
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