When do you stop working / making money ?

[milanbenes]

Looks like you're missing the point about BTL. However, I do understand that it's not everyone's cup of tea and 8% is a reasonable hands-off return.

Loaning the money to the kids officially is an interesting concept but I'm not sure it's necessary to have it notarised.

What we're doing with our (still young) kids is to involve them in our work/money/discussions at various stages, so that they know why we do things and what it means to earn money the smart way and not by following the doomed-yet-common 40/40/40 rule. They know about tenants and rents etc. They know that - for example - they can let out a house for £1k a month and only have to work maybe 2 or 3 hours a month for that money - if they plan their investments carefully.

We educate our kids in good schools and also at home. Constantly, as part of daily, normal discussions. I teach them that they need to be useful to society when they grow up; they can't just be lazy and a part of this new famous-on-YouTube generation.

I tell them that everything I own is theirs, so they need to learn all about it. So they will grow up with the understanding that there is no "mine" or "theirs" and it is instead all "ours" to use and grow and manage. So they won't start from zero, but they will start with everything, together, with us. We started with nothing - literally - so they'll take what we now have and take it a lot farther than we ever could have.

+1 very very almost verbatim similar situation at our house

Milan.

[Fred Bloggs]

Looks like you're missing the point about BTL. However, I do understand that it's not everyone's cup of tea and 8% is a reasonable hands-off return.

Loaning the money to the kids officially is an interesting concept but I'm not sure it's necessary to have it notarised.

What we're doing with our (still young) kids is to involve them in our work/money/discussions at various stages, so that they know why we do things and what it means to earn money the smart way and not by following the doomed-yet-common 40/40/40 rule. They know about tenants and rents etc. They know that - for example - they can let out a house for £1k a month and only have to work maybe 2 or 3 hours a month for that money - if they plan their investments carefully.

We educate our kids in good schools and also at home. Constantly, as part of daily, normal discussions. I teach them that they need to be useful to society when they grow up; they can't just be lazy and a part of this new famous-on-YouTube generation.

I tell them that everything I own is theirs, so they need to learn all about it. So they will grow up with the understanding that there is no "mine" or "theirs" and it is instead all "ours" to use and grow and manage. So they won't start from zero, but they will start with everything, together, with us. We started with nothing - literally - so they'll take what we now have and take it a lot farther than we ever could have.

I'm sure you're doing a great job and you'll have kids to be proud of, for certain.

Regarding BTL especially, I'm not exactly sure what you mean but to me, the (HMG/HMRC) direction of travel with private BTL portfolios is very clear. The big advantages to me of a high yielding REIT are many. But a very big one is that you pop the REIT into an ISA and you enjoy the regular 8% dividend tax free for ever. If you're a 40% tax payer that's very important, but even as a 20% tax payer that's a return I am not sure you'll get these days from a BTL and you have zero chance of voids or tenants wrecking the place etc... For sure, BTL is OK for some folks, but definitely not for me.

[Fred Bloggs]

But OK, seriously then, what do you do and why would a company in Oz pay you $400k to work as a permie for them in what is not a senior managerial role?

That is a very good question and yes, I will reply seriously as you made the point in all seriousness. Apologies for the long reply, but you did ask. - I am a specialist in a certain type of oil and gas plant equipment. I have kind of fallen into this situation over the years but I have an almost unique career of two halves over a > four decade time span. Half my career has been in technology development and efficiency improvement at the sharp end, very hands on, very innovative, very cutting edge. And half my career has been in huge capital projects work on process and gas plants. Obviously, I am in the twilight of my career now. Almost everyone I have known similar to me has retired. And there weren't many to start with. In Australia, uniquely in the last decade, there has been massive investment over the last 10 years in building huge liquefied natural gas plants. Within the next two years Oz will be the world's biggest exporter of LNG, over taking Qatar. All the world's oil and gas majors are there now and all these plants are now entering production. So, in a ten year period a country (Oz) goes from having just one LNG plant operator (Woodside) to being the world's biggest LNG exporter. It so happens that a lot of my experience has been in cryogenic process plants. Yep - LNG and other similar technologies. The next round of major investment in Oz with the next phase of gas plants is just starting (a small project would be, say USD 10 billion). But already, there aren't enough people to go round. And not only in Australia. There aren't enough people to go round across the world with the exact skill set that I have. The company I am hired by and will be working for shortly are basically in the smelly stuff. They have spent around USD 40 billion on LNG plants and they have problems. They don't have anyone to get a grip on these issues. That's where I come in. You mentioned senior management. I will be this companies #1 technical expert in Australasia. I have the knowledge to basically say to them "do this, do that" and know that it will work. They cannot go anywhere else for that. They already tried. Again, apologies for the long post, but that's the story.

[milanbenes]

That is a very good question and yes, I will reply seriously as you made the point in all seriousness. Apologies for the long reply, but you did ask. - I am a specialist in a certain type of oil and gas plant equipment. I have kind of fallen into this situation over the years but I have an almost unique career of two halves over a > four decade time span. Half my career has been in technology development and efficiency improvement at the sharp end, very hands on, very innovative, very cutting edge. And half my career has been in huge capital projects work on process and gas plants. Obviously, I am in the twilight of my career now. Almost everyone I have known similar to me has retired. And there weren't many to start with. In Australia, uniquely in the last decade, there has been massive investment over the last 10 years in building huge liquefied natural gas plants. Within the next two years Oz will be the world's biggest exporter of LNG, over taking Qatar. All the world's oil and gas majors are there now and all these plants are now entering production. So, in a ten year period a country (Oz) goes from having just one LNG plant operator (Woodside) to being the world's biggest LNG exporter. It so happens that a lot of my experience has been in cryogenic process plants. Yep - LNG and other similar technologies. The next round of major investment in Oz with the next phase of gas plants is just starting (a small project would be, say USD 10 billion). But already, there aren't enough people to go round. And not only in Australia. There aren't enough people to go round across the world with the exact skill set that I have. The company I am hired by and will be working for shortly are basically in the smelly stuff. They have spent around USD 40 billion on LNG plants and they have problems. They don't have anyone to get a grip on these issues. That's where I come in. You mentioned senior management. I will be this companies #1 technical expert in Australasia. I have the knowledge to basically say to them "do this, do that" and know that it will work. They cannot go anywhere else for that. They already tried. Again, apologies for the long post, but that's the story.

good job

Milan.

[Fred Bloggs]

good job

Milan.

I thought so too. LOL!

[milanbenes]

I thought so too. LOL!

I guess a lot of your meetings go like this....


Client: we are proposing to do this and because of that this way

You: won't work. next

Client: yes it will

You: been there, seen it, done it, got the t'shirt - your call guys

Client: we'll do it the way we proposed he knows nothing

everything goes to tulip

You: I told you so


Milan.

[Fred Bloggs]

I guess a lot of your meetings go like this....


Client: we are proposing to do this and because of that this way

You: won't work. next

Client: yes it will

You: been there, seen it, done it, got the t'shirt - your call guys

Client: we'll do it the way we proposed he knows nothing

everything goes to tulip

You: I told you so


Milan.

Hey, don't tell everyone! True though. Along with "it's OK guys, being in a minority of one is quite normal for me".

[milanbenes]

Hey, don't tell everyone! True though. Along with "it's OK guys, being in a minority of one is quite normal for me".

he who laughs last eh

Milan.

[Fred Bloggs]

he who laughs last eh

Milan.

Well, usually that only happens once per assignment. After that they tend to listen more carefully and remember why they invited me there in the first place.

[MarillionFan]

disagree on this item

you create your own luck

I am trying to instill the following in my daughters

. understand people

. understand money

. don't worry about being the best, but whatever you do, always do your best

. an appetite for hard work

the goal is with these traits they can continue the success of their previous generations

I'll let you know in 20 years time if I failed or succeeded

Milan.

Wow. 20 Years on ContractorUK and this is the first time I've agreed with Milanbenes. 2038 will be the next.