Reply to: Do flatter yourselves.

[wim121]

But surely, like everything else, you can buy them cheaper on the Internet?

Indeed. It baffles me why people have children of their own especially men?

Once you have children, you have to pay for them, for life. Once one's wife gets sick of a husband, they can divorce them, keep the home, car and kids and have the ex support them all.

Constant outgoings; and for what?

To enrich a child and leave a legacy? To have a family? Does the child need to be yours biologically for that? Why not instead of paying to have kids, get paid by the state for it? They screw you out of money, so why not get some back? Foster a few kids, even set up a farm and keep loads of them in a barn. You could earn more than you ever could through work.

We all have a different set of needs and wants, but generally I think you could live off £1m, but not by leaving it in the bank. You would need to invest in low risk income generating assets, for example solid yielding stocks/bond (not junk status) or property.

For £1m you could buy say 4 houses for cash, which would bring you income of £60,000 per year (before tax). Or leverage up and you could increase that income.

You could also send the money offshore to say an Indian bank a/c where it would earn 10% interest (let's not go so extreme as Zimbabwe!). It would probably devalue against the £ though.

Well said chimp, completely agree.

[wim121]

Is that what we should all be aspiring to?

It would keep me content at least. I would be more than happy with a roof over my head in some country developed at least a little, then travel the world.

Others, may have different ideals though, so aspirations are maybe not correct for all. Personally, I hate aspiration in the west as it is a individual greed mechanism driven by capitalism. I think it is sad some aspire to "keep up with the jone's", but if that makes them content, so be it. However I dont know if they are truly content?

But one needs somewhere to live. And of course there is the cost of children.

I couldn't. £3000 per month after tax just covers my basic outgoing for the family and so would leave nothing over.

All depends on whom you are, etc etc. I live in the north, so a three bed house in a good-ish area is about £90k-£150k. Once I calculate all my outgoings, they are less than £1k a month.

In addition that £1m in real terms would devalue at the rate of
inflation (4%) per year and the low interest rate leaves nothing to cover the reduction.

So in truth it's not enough. Realistically £2m is the minimum rate you need.

Editing out your foulness ........

Inflation is another variable. I was responding to your basic pessimistic premise of 3% interest. It is easy to get low risk interest rates of around 8%. Those with smaller amounts of money can even make 8%-10% through loans online. That gives you your 3% AND covers inflation as well. You could get a higher interest rate even.

You may need £2m MF, but that is you. I would be happy with less than £1m.

However the true question is, why would one ever stay in the UK if they had that much money? If money were no issue, would anyone truly want to stay here? There are far nicer countries which are cheaper to live in, away from the chavs and welfare scroungers, where your money will go that much further. With that amount of money as well, visa's wouldnt be an issue in many countries.

[nomadd]

And, of course, there is the cost of children.

But surely, like everything else, you can buy them cheaper on the Internet?

[ChimpMaster]

We all have a different set of needs and wants, but generally I think you could live off £1m, but not by leaving it in the bank. You would need to invest in low risk income generating assets, for example solid yielding stocks/bond (not junk status) or property.

For £1m you could buy say 4 houses for cash, which would bring you income of £60,000 per year (before tax). Or leverage up and you could increase that income.

You could also send the money offshore to say an Indian bank a/c where it would earn 10% interest (let's not go so extreme as Zimbabwe!). It would probably devalue against the £ though.

The point about leaving cash in the bank in the UK is that the interest rate is paltry and the capital will always erode due to inflation. Smart investments will keep up or outpace inflation, when the yield is taken into account.

If you don't have a mortgage on your house then £50,000/year is going to be a superb sum to have as residual income for most people, even with a coupe of kids. Man if I had that kinda money I'd be outta here so fast...

Horses for courses.

[BrilloPad]

Is that what we should all be aspiring to?

In your case - yes.

HTH

[DodgyAgent]

As I said above, I think even at a pessimistic 3% interest rate, £2,500 per month before tax is a good wage. I wouldnt mind that, every month for the rest of my life. I could retire on that and travel the world very easily.

Is that what we should all be aspiring to?

[BrilloPad]

As I said above, I think even at a pessimistic 3% interest rate, £2,500 per month before tax is a good wage. I wouldnt mind that, every month for the rest of my life. I could retire on that and travel the world very easily.

But one needs somewhere to live. And of course there is the cost of children.

But remember that back in the sixties £250 per month for life sounded like a good deal. What would £250/month get you now? I still think the government plans to inflate their way out of the debt crisis. I hope I am wrong.

[MarillionFan]

As I said above, I think even at a pessimistic 3% interest rate, £2,500 per month before tax is a good wage. I wouldnt mind that, every month for the rest of my life. I could retire on that and travel the world very easily.

I couldn't. £3000 per month after tax just covers my basic outgoing for the family and so would leave nothing over. In addition that £1m in real terms would devalue at the rate of
inflation (4%) per year and the low interest rate leaves nothing to cover the reduction.

So in truth it's not enough. Realistically £2m is the minimum rate you need.

Hth

Now fook off.

[wim121]

It's not that you can live, it's how you can live

As I said above, I think even at a pessimistic 3% interest rate, £2,500 per month before tax is a good wage. I wouldnt mind that, every month for the rest of my life. I could retire on that and travel the world very easily.

[NickFitz]

Seriously?!

Even in this country or the US, you can live off the interest of £1m, retire forever!

It's not that you can live, it's how you can live

[wim121]

3% in the bank before tax.

Now fook off.

Wow five words and an insult, arent you great at furthering conversations knobjockey?


You would expect a far higher interest rate than 3%. But using that figure, that is still £2,500 per month. Many people dont make a higher salary than £20k pa (£1,666 pm) before tax and manage to survive on a single wage. £2.5k is around the same amount as two people working for £20k pa or one person working for £40k.

So how on earth do you think that is a meagre wage? For most, that allows them to live without having to worry about money or budgets.



Now if you care to respond intellectually instead of responding like a drunk toddler, I'll be prepared to speak to you.

[MarillionFan]

As I said before, is anyone actually going to bother coming back with a reasoned and intelligent response of why you feel one cant live off £1m ?

3% in the bank before tax.

Now fook off.

[wim121]

As I said before, is anyone actually going to bother coming back with a reasoned and intelligent response of why you feel one cant live off £1m ?

[MarillionFan]

Obviously you wouldnt stick it in any ordinary bank account because of the taxes. With that amount of money you could have a financial manager/advisor take care of it for you. Invest how safely or riskily you want to.

[wim121]

Presumably answers don't include sticking it the bank and watching it disappear as if by magic. Banks and interest payments are so yesterday.

Obviously you wouldnt stick it in any ordinary bank account because of the taxes. With that amount of money you could have a financial manager/advisor take care of it for you. Invest how safely or riskily you want to.