Is there any point in saving?

[aussielong]

Inflation heading for 7% and banks paying around 6% interest AND then any interest you do make is reduced to about 3.5% by higher rate tax.

So, if you've got money, you may as well go out and spend it and enjoy it before it is completely worthless.

There is no point in having money in the bank if you are a higher rate single person. You will at best break even after tax and inflation. Even if you put it into property you will be clobbered by capital gains tax. What can you do? Can you invest long term (say in property) and then pay reduced tax if you realise the capital gain when you have either retired, or benched for a tax year?

I don't think it's worth the hassle. The best bet is too spend the time increasing your skills to get into higher contract rates. Cranking at higher rates is the way to get the $$ in, not relying on interest from the banks.

[DimPrawn]

There is no point in having money in the bank if you are a higher rate single person. You will at best break even after tax and inflation. Even if you put it into property you will be clobbered by capital gains tax. What can you do? Can you invest long term (say in property) and then pay reduced tax if you realise the capital gain when you have either retired, or benched for a tax year?

I don't think it's worth the hassle. The best bet is too spend the time increasing your skills to get into higher contract rates. Cranking at higher rates is the way to get the $$ in, not relying on interest from the banks.

I am, but I've also got £500,000 in cash waiting for the rock bottom in asset prices, and it needs somewhere to live in the short/med term.

Life can be a bitch sometimes.

[lilelvis2000]

The Taxpayers?

Close.

[aussielong]

I am, but I've also got £500,000 in cash waiting for the rock bottom in asset prices, and it needs somewhere to live in the short/med term.

Life can be a bitch sometimes.

500 LARGE? are you serious?! GOOD GOD.

ooer. i feel like i've just discovered my best mate has a massive length and i've only got a little fiddler.

if i had that sort of wedge i'd retire. buy a 200K house in spain, 200K in a pension, 100K stashed, work in a bar 3 days a week for pocket money.

[DimPrawn]

500 LARGE? are you serious?! GOOD GOD.

ooer. i feel like i've just discovered my best mate has a massive length and i've only got a little fiddler.

if i had that sort of wedge i'd retire. buy a 200K house in spain, 200K in a pension, 100K stashed, work in a bar 3 days a week for pocket money.

You don't have a wife and kids to consider.

It's easy to make silly money. Simply buy property at the bottom of the market and sell near the top.

HTH

[ChimpMaster]

You don't have a wife and kids to consider.

It's easy to make silly money. Simply buy property at the bottom of the market and sell near the top.

HTH

You're right, wife, kids etc make you realise that 500k isn't much at all. Before marriage I was planning to generate a residual income of about £1k a month and live off that. But then I moved out of the parents' house, got married and had a couple of kids... and now realise that I'd probably want closer to £5k a month (bearing in mind ~2k will be tax) to live a good life and provide reasonably well for my family.

Anyway - best way to make £500k is to start with a £million and buy a property NOW. Don't miss out on this amazing offer.

[Bob Dalek]

500 LARGE? are you serious?! GOOD GOD.

ooer. i feel like i've just discovered my best mate has a massive length and i've only got a little fiddler.

if i had that sort of wedge i'd retire. buy a 200K house in spain, 200K in a pension, 100K stashed, work in a bar 3 days a week for pocket money.

WHS - but in France, not Spain.

[TimberWolf]

Anyway - best way to make £500k is to start with a £million and buy a property NOW.