Reserve Funds and Contractors

[DimPrawn]

It's a gamble.

You could build up a £200K "war fund" just sitting there adding little value to your life and then die of cancer anyway, or you could take a risk, spend it on something you enjoy and hope that being brilliant will get you through any bad patches.

These large pots of cash could have been used to buy and sell property and some here would now be millionaires.

[oracleslave]

You could build up a £200K "war fund" just sitting there adding little value to your life and then die of cancer anyway

WHS. Not a risk worth taking imho.

[Solidec]

It's a gamble.

You could build up a £200K "war fund" just sitting there adding little value to your life and then die of cancer anyway, or you could take a risk, spend it on something you enjoy and hope that being brilliant will get you through any bad patches.

These large pots of cash could have been used to buy and sell property and some here would now be millionaires.

I did not say you had to keep that £200K in CASH. Just because McSnotty is a profligate w4nker doesn't mena we all have to be.

At £800 a day for a sustained 5 years, I could live extremely luxuriously and STILL have £200K tucked away (be it in stocks, bonds, gold, property or cash), and I rent a flat in Central London!!!

I guess its just a mindset, I don't think buying designer clothes and having 3+ long haul holidays a year is my idea of fun. I can be just as happy having a lark in the park with some friends.

End of the day, if you can live comfortably and hapilly without going over the higher rate tax threshold, why would you ever draw more than 40K from your business? Knowing that one day you can wind up the whole operation and pay minimal CGT on residual company profits?

Proflicacy may have cost these idiot contractors tens of thousands in extra tax just so they could live "the celebrity high life"

[DimPrawn]

Proflicacy may have cost these idiot contractors tens of thousands in extra tax just so they could live "the celebrity high life"

What a strange person you are. Calling them idiots for spending their money they earned and paid tax on how they see fit.

[Solidec]

What a strange person you are. Calling them idiots for spending their money they earned and paid tax on how they see fit.

I assume you think the sun shines out of Gordon Brown's bottom then?

Same bloody principle, the rainy day fund.

ESPECIALLY in contracting, or were you fooled by the "no return to boom and bust" line ?

[expat]

What a strange person you are. Calling them idiots for spending their money they earned and paid tax on how they see fit.

Indeed! Good New Labour bossy politician material here if you ask me.

[oracleslave]

I assume you think the sun shines out of Gordon Brown's bottom then?

Not read many of DP's posts I take it.

[d000hg]

It's a gamble.

You could build up a £200K "war fund" just sitting there adding little value to your life and then die of cancer anyway, or you could take a risk, spend it on something you enjoy and hope that being brilliant will get you through any bad patches.

These large pots of cash could have been used to buy and sell property and some here would now be millionaires.

If you're full-time 'employed' then £400/day is a pretty big sum, I don't think I would easily spend more than that even with a pretty opulent lifestyle. That leaves you a day SAVING rate of £200-400 AFTER holidays and champagne, which has to be over £50K a year.
Maybe they have much more extravagent lifestyles (although how many solution architects drive ferraris?), or maybe they did invest it all in property... but even then property isn't worthless just yet!

[bobspud]

How long does lunch take you?

Doh !

[DS23]

I'm going to be dry of all cash by the end of next month then the fun starts...

My company will be tits up as well. Guess I will be in fine company

i refer the honorable gentleman to my previous post.