When do you stop working / making money ?

[LondonManc]

I'm contracting for only 1.5 year so what time has to do with this?

What do you mean? Time has a lot to do with it. If VC's maxed out his dividends to clear off a debt from permidom, that will eat into his warchest. Two kids and a wife eat into your warchest. Maintaining a household eats into your warchest.



*By warchest, I also mean the ability to build one.

[Chuck]

I was talking to a friend who's a high net worth financial adviser.

He suggested that you need a million in liquid assets and no mortgage or debts.

It's enough money to earn you more, should you want, and it's enough that you can live a decent life without worrying about what you're spending.

Once you've downsized your home, and you're debt free, I think you'd be surprised how little you actually spend.

[Fred Bloggs]

Wow.

Where overseas?

50/50% East asia and GCC state in middle east.

[VillageContractor]

What do you mean? Time has a lot to do with it. If VC's maxed out his dividends to clear off a debt from permidom, that will eat into his warchest. Two kids and a wife eat into your warchest. Maintaining a household eats into your warchest.



*By warchest, I also mean the ability to build one.

Exactly - especially if you 4 kids

[BigRed]

I love these threads. I always had £800k in my head. I figure 20yrs at £40k a year and then whatever else it earns in the meantime would see me though.

It would be easy to earn 6% in dividends from a portfolio of low risk shares.

[LondonManc]

I was talking to a friend who's a high net worth financial adviser.

He suggested that you need a million in liquid assets and no mortgage or debts.

It's enough money to earn you more, should you want, and it's enough that you can live a decent life without worrying about what you're spending.

Once you've downsized your home, and you're debt free, I think you'd be surprised how little you actually spend.

Introduce him to my wife and kids. He'll soon double it.

[Chuck]

Introduce him to my wife and kids. He'll soon double it.

He was working on the assumption that kids are gone and paid for already. Agree about the wife bit though.

[Fred Bloggs]

It would be easy to earn 6% in dividends from a portfolio of low risk shares.

Go on then, name a dozen low risk shares yielding 6%. After all, you said, it's easy?

[diseasex]

Go on then, name a dozen low risk shares yielding 6%. After all, you said, it's easy?

When interest rates are high you go for 6% bonds (which are low risk), otherwise more like 4% dividends are more realistic. Either way , from a million it's just enough.

[BlasterBates]

With shares my experience is around 7-8%, i.e. double your money every 10 years. High dividend stocks give you much less capital appreciation.

I wouldn't advise going for a high divdend portfolio, firstly because often high dividends aren't usually sustainable (I have experience of a stock that paid high dividends for several years and went bust or simply reduce their dividend) and secondly you're missing out on great stocks because most pay 1-3%.

I would consider a reasonable "high dividend" portfolio paying between 3 and 4%