Could you retire for rest of your life with a million Quid

sink_or_swim · 29-10-2012 05:22PM

af_thefragile wrote: »

I guess I could buy a decent house and a decent car for a million quid. But then I'll need to do something with the rest of the money or else within a decade I don't think I'll have a lot left. Probably look to invest it in a business or something.

If I had a billion on the other hand, I wouldn't need to work a single day in my life ever!

you could buy six decent houses with a million quid , a million would buy four and you could easily borrow for another two without a blink from the bank

id still rather stick it in the stockmarket however , your assetts are more liquid and not at the mercy of a tiny economy on the edge of europe

krudler · 29-10-2012 05:26PM

juan.kerr wrote: »

Or why not work hard, get qualifications / promotions and take home more money.

can I do that and still have the million quid? I'd love to have enough money where I could do something I want and love to keep me entertained not work an office job

af_thefragile · 29-10-2012 05:33PM

sink_or_swim wrote: »

you could buy six decent houses with a million quid , a million would buy four and you could easily borrow for another two without a blink from the bank

id still rather stick it in the stockmarket however , your assetts are more liquid and not at the mercy of a tiny economy on the edge of europe

Well, by decent I meant a nice house, like in 4bed semi-detached in a nice part of Dublin. You're looking at least around €400-500k.

If you buy a big house in the middle of nowhere or in a suburb which is a good distance away from the city centre then there is a good chance you may lose big money on the house if the market goes bust like it did in 2007-08. But if you buy a house in a upmarket part of Dublin and don't buy it stupidly expensive, then there's a good chance you won't lose any money on your house. Dublin isn't going to become any smaller and less significant in the future unless something major happens and the upmarket areas of Dublin will remain upmarket throughout the years and will hold their value better than the less affluent areas.

steve9859 · 29-10-2012 05:34PM

sink_or_swim wrote: »

im refering to index etf funds ( DIY) which cost less than a half of one percent per year , four out of five managed funds which the banks flog never make any money as they are gobbled up with fees and even the ones which make money , rarely ever do any better than index funds

the market has seen zero return since the year 2000 ( excluding dividends ) but thats only a twelve year period , the market boomed from 1982 to the year 2000 so over a thirty year period , the returns were decent

So you suggest putting the entirety of your million pounds in an index etf fund?

Hmmmm.....hope you don't work as a financial advisor!

sink_or_swim · 29-10-2012 05:54PM

steve9859 wrote: »

So you suggest putting the entirety of your million pounds in an index etf fund?

Hmmmm.....hope you don't work as a financial advisor!

ok , the half of it , spend the other half on a bond portfolio and the rest on a few investment properties , sounds like a pretty balances portfolio to me

Permabear · 29-10-2012 05:54PM

This post has been deleted.

Fighting Irish · 29-10-2012 06:11PM

Culleeo wrote: »

I'm sure you could live comfortably if you used the money wisely. I would like to think I'd keep working if I had a million in the bank. The only issue is, the mornings you wake up and wish you didn't have to get up for work or college, I'm sure I would think to myself, I've a million in the bank, I'm quitting.

lol

asherbassad · 29-10-2012 06:18PM

sink_or_swim wrote: »

anyone with half a brain could retire on a million quid provided they didnt live like gerry ryan or one of those american rappers

you simply stick it in a fund and live off the dividends , a million quid will pay you close on 25 k per year on that alone and after twenty years should be worth two million

Indeed...you could live like an Emperor in Thailand on 25k a year. Eating out everyday, chilling by the beach, etc. In fact you'd be hard pressed to burn through 25k in Thailand unless you blew it on pleasures of the flesh.

bluecode · 29-10-2012 06:19PM

I seem to remember an assessment some years ago concluding that you would need at least £3m to live off it for the rest of your life. That's pounds sterling, so that would make it closer to €4m.

But if you work it right you can turn a million into several million with a bit of shrewd investing. Or lose it all.

I don't think you can give up work with a million but you can use it to get the job you really want. It's been described as 'F**k you money'. If your boss gives you hard time you'll have the freedom to say 'Eff you' and walk.

In fact a lot of people are effectively worth over a million. But they continue to work and carry on with their lives as if they didn't have it. It's ridiculous to say it, particularly as I don't have a million. But it isn't much money these days. A couple of fancy cars and a big house would use it up very quickly. A €500,000 house, and two €100,000 cars is €700,000. It will be soon gone.

krudler · 29-10-2012 06:22PM

Fighting Irish wrote: »

lol

I dont get this either, its like lotto winners who still work, unless you've got the best job in the world and you'd do it for free, fcuk. that. sh1t.

Galwayguy35 · 29-10-2012 06:26PM

The very first lotto millionaire who won £1 million back in 1989 lives a few miles from me, they spent very little of it so it must be worth well over 2 million now.

bettyswollocks · 29-10-2012 06:46PM

Well, I managed to do it on less than half that amount.

I invested into the market, in stages, over the past 2 years, to get an average entry price. Its a combination of ETFs and high-yielding equities. I dont like bonds and the yields on them are now too low, without resorting to emerging markets or high-yield, non-investment grade bonds. I dont like funds either, costs of entry/exit and ongoing fees are too much. I dont trade the stock market; i am an investor. What about inflation I hear you say... I only buy companies that have a progressive dividend policy. That way, I can spend the income without worrying about inflation, and I never touch the capital sum. In fact I will try to add to it next year. I dont react to market volatility and I know how to spot a bargain, as I would only be buying it as an income stream. I have a watch-list and I stick to it. Theres a high-yield ETF called IDVY. Thats a good way to start this process.

I am 44 years old, with no mortgage and I was pretty well determined to do this. I found that I could no longer work for other people, and that I am not really into working, full-stop. I spend very little, and yet I still can do most things, socially that is. Yes, I realise that I am lucky.

Its not about how much you earn, its what you do with the money you save. I think I saved 90% of my income in the last few years, and I was ruthless about this... I cut my own hair!

Good luck to all.

krudler · 29-10-2012 06:48PM

bettyswollocks wrote: »

Well, I managed to do it on less than half that amount.

I invested into the market, in stages, over the past 2 years, to get an average entry price. Its a combination of ETFs and high-yielding equities. I dont like bonds and the yields on them are now too low, without resorting to emerging markets or high-yield, non-investment grade bonds. I dont like funds either, costs of entry/exit and ongoing fees are too much. I dont trade the stock market; i am an investor. What about inflation I hear you say... I only buy companies that have a progressive dividend policy. That way, I can spend the income without worrying about inflation, and I never touch the capital sum. In fact I will try to add to it next year. I dont react to market volatility and I know how to spot a bargain, as I would only be buying it as an income stream. I have a watch-list and I stick to it. Theres a high-yield ETF called IDVY. Thats a good way to start this process.

I am 44 years old, with no mortgage and I was pretty well determined to do this. I found that I could no longer work for other people, and that I am not really into working, full-stop. I spend very little, and yet I still can do most things, socially that is. Yes, I realise that I am lucky.

Its not about how much you earn, its what you do with the money you save. I think I saved 90% of my income in the last few years, and I was ruthless about this... I cut my own hair!

Good luck to all.

Are you the soapy arse woman?

jaydoxx · 29-10-2012 06:51PM

Does the best answer get a million yoyos? Are you some generous dying billionaire OP?

nbar12 · 29-10-2012 06:57PM

simple answer: No

mike65 · 29-10-2012 07:04PM

yes, as I'm old

Siuin · 29-10-2012 07:06PM

You wouldn't want to be planning to live all that long...

Stinicker · 29-10-2012 07:19PM

10 to €12k a year is enough to live comfortably in somewhere like Thailand, however you have to allow say 3 to 5% for inflation each year no matter where you are. In 30 years time €10m will probably be needed

hmmm · 29-10-2012 07:54PM

There's a lot of research done on "safe withdrawal rates", which is the amount it is safe to withdraw without running the risk of exhausting your assets. If anyone was seriously considering this, it is worth a read.

It doesn't help however that this government has decided to start stealing the principal from pension funds.

tolosenc · 29-10-2012 08:01PM

€5 million is the target. If you can get 2% pa on that, you're making 100k a year. Happy out.

UCDVet · 29-10-2012 08:12PM

I think a lot of people would find that, with the ability to retire early, they'd actually make *more* money in the long run. I've actually seen this happen first hand, more than once.

Most recent example, an older co-worker of mine had been working hard to support his family for years - since he'd left uni. Between his full-time job, extra hours, his commute, and doing regular family stuff, that was about all he had time for. He did his part, but was so busy with work, work was all he had time for. He was 'good' at his job, but never good at his boss's boss's job. Ultimately he was a low-level manager.

But when his wife had their first kid, she quit working. They had two kids, but as they got older, she had more and more free time. Not enough to get a full-time job, but her family didn't *need* her income. She could take career risks, hold out for the perfect job, spend two years developing an idea, etc, etc, that so many workers can't.

She ended up starting a business. First year - it was an absolute failure. Second year, it was an absolute failure. It was more of a hobby and they made no money from it. But it was fun and she learned a lot about running a business. Year three, four and five, it was less than she'd have earned working a full-time job, but each year got better.

Things kept getting better and it grew. After 12 years, it was a successful business with a dozen employees and his wife was significantly out-earning him, while working her 'dream job'. That's actually when he quit to work full-time at the family business.

It was a really cool thing to get to see and it really makes me question if going to work each day is really in my best interest. If I won a million quid and invested it conservatively and lived frugally, I wouldn't need to work my ~44 hours per week and spend 10 hours on the bus each week. I devote my energies to things that I really liked that, while not initially profitable, would have a better chance of financial success than my current career.

GalwayGuy2 · 29-10-2012 08:48PM

But when his wife had their first kid, she quit working. They had two kids, but as they got older, she had more and more free time. Not enough to get a full-time job, but her family didn't *need* her income. She could take career risks, hold out for the perfect job, spend two years developing an idea, etc, etc, that so many workers can't.

She ended up starting a business. First year - it was an absolute failure. Second year, it was an absolute failure. It was more of a hobby and they made no money from it. But it was fun and she learned a lot about running a business. Year three, four and five, it was less than she'd have earned working a full-time job, but each year got better.

I feel kind of bad for the husband at the beginning of that story.

Garzorico · 29-10-2012 08:53PM

don't know but if you ever want to find out I'll be the guinea pig for you

BrianD3 · 29-10-2012 09:08PM

I don't earn big money but currently only spend ~25% of my net income so I already know that I can live frugally and well within my means.

Assuming that:
1) I start from zero i.e. no savings but also no debt
2) Net return on the 1 million matches inflation
3) I increase my spending by inflation each year
4) I'm not allowed to "work" for the rest of my life
5) I receive no state pension or any other form of social welfare

I could live comfortably but not extravagantly for decades. Helicopters, new Ferraris or even new BMWs etc. would be completely out of the question.

A million is a huge amount of money for a frugal person but not that much for a wasteful person. I know some "lads" that worked in construction from 1997-2007 who by my reckoning have earned but also spent/drank/snorted/wasted close to a million in that period and now have fcuk all to show for it.

the groutch · 29-10-2012 09:12PM

depends on your age

18 - no

35 - maybe

50 - definitely

Could you retire for rest of your life with a million Quid

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