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Growing wealth

  • 28-09-2019 4:14pm
    #1
    Registered Users Posts: 13,505 ✭✭✭✭Mad_maxx


    Let's say a great aunt died and left you a million euro, could you retire and having put the money to work, live off it?

    If so, what would you do with the money - where would you invest it?


    Idea stems from stories you read about people who either build up enough of a nest egg to retire early, replace great aunt with won it on the 3.10 @ Cheltenham if you prefer.


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Comments

  • Registered Users Posts: 4,122 ✭✭✭BeerWolf


    watering-money-tree-picture-id509343555


  • Registered Users Posts: 6,547 ✭✭✭Agricola


    I'd contact Jacob Rees Mogg and ask him for advice on extremely short term investment opportunities..........


  • Banned (with Prison Access) Posts: 391 ✭✭Professor Genius


    Mad_maxx wrote: »
    Let's say a great aunt died and left you a million euro, could you retire and having put the money to work, live off it?

    If so, what would you do with the money - where would you invest it?


    Idea stems from stories you read about people who either build up enough of a nest egg to retire early, replace great aunt with won it on the 3.10 @ Cheltenham if you prefer.

    A diverse fund portfolio with interest, rental and dividend income would do me


  • Closed Accounts Posts: 32,688 ✭✭✭✭ Kyrie Tinkling Reimbursement


    It's not hard, once you've built up decent capital, to find a range of options delivering a decent return and a steady income.


  • Registered Users Posts: 4,625 ✭✭✭Aint Eazy Being Cheezy


    It's not hard, once you've built up decent capital, to find a range of options delivering a decent return and a steady income.

    What’s one of them?


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  • Registered Users Posts: 5,452 ✭✭✭valoren


    Blue chip dividends. You'd get circa 3% average after tax so 30k a year. The dividend kings and aristocrats raise their dividends annually so the 30k would grow every year as well. Let's take an annual increase of 10% on that 30k every year. If you reinvested the 30k dividends and added more of your own cash to buy more stock then you accelerate the compounding process every quarter.

    Quick example. Take 10k of the million. Buy something like Altria (aka the old Phillip Morris) and you get 8.3% dividend or $830 before paying 15% withholding tax. When you get the dividend, buy more Altria. Wash rinse repeat with a diversified portfolio of blue chip legends.


  • Registered Users Posts: 1,328 ✭✭✭Upforthematch


    Mad_maxx wrote: »
    Let's say a great aunt died and left you a million euro, could you retire and having put the money to work, live off it?

    I dunno could someone in their twenties based in Dublin without their own home actually live off that million for the rest of their life with investment returns as they are.

    Sure they wouldn't starve but I don't think they'd have the "millionaire lifestyle" as they say.


  • Registered Users Posts: 10,117 ✭✭✭✭Junkyard Tom


    Buy some land over in the West Indies and work some slaves on it.


  • Registered Users Posts: 1,916 ✭✭✭Conall Cernach


    I dunno could someone in their twenties based in Dublin without their own home actually live off that million for the rest of their life with investment returns as they are.

    Sure they wouldn't starve but I don't think they'd have the "millionaire lifestyle" as they say.
    If they had a million in the bank they could afford to move elsewhere and then use the remainder to do as Valoren has suggested.


  • Registered Users Posts: 13,505 ✭✭✭✭Mad_maxx


    You keep hearing about how the first million is the hardest, perhaps that relates to self made business men?

    I'd have thought simply borrowing another million and buying two million worth of prime location property was the least complicated?


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  • Registered Users Posts: 20,259 ✭✭✭✭dxhound2005


    Plenty of people these days will have taken home well over a million in wages during their working lifetime. The best advice I would offer in this case is to find out how the aunt accumulated her wealth, and replicate that.


  • Registered Users Posts: 1,033 ✭✭✭pearcider


    valoren wrote: »
    Blue chip dividends. You'd get circa 3% average after tax so 30k a year. The dividend kings and aristocrats raise their dividends annually so the 30k would grow every year as well. Let's take an annual increase of 10% on that 30k every year. If you reinvested the 30k dividends and added more of your own cash to buy more stock then you accelerate the compounding process every quarter.

    Quick example. Take 10k of the million. Buy something like Altria (aka the old Phillip Morris) and you get 8.3% dividend or $830 before paying 15% withholding tax. When you get the dividend, buy more Altria. Wash rinse repeat with a diversified portfolio of blue chip legends.

    Unless of course you bought Altria in 2017 in which case you’ve lost half your investment.


  • Registered Users Posts: 2,918 ✭✭✭mikemac2


    Purchase buy to let property

    When it works you are a canny genius and all success is down to your smarts and when it doesn't work you get to shout it is fault of someone else and where is the bailout for the little people

    Accomadation forum over the years confirmed this :rolleyes:


  • Closed Accounts Posts: 1,497 ✭✭✭ Santino Chubby Munchies


    If your great-aunt left you the money, the first €32,500 would be tax-free, and then you would pay Capital Acquisitions Tax of 33% on the remainder. So your million euro would be down to €680,725 straightaway.

    One of the implications of the current Irish taxation system.


  • Closed Accounts Posts: 2,005 ✭✭✭BDI


    Buy good property during the recession and sell it during the boom. Rent it out in between. That’s how old money works.

    New money buys gold chains during the boom and sells them when they broke during a recession to old money types in cash for gold shops.


  • Registered Users Posts: 16,165 ✭✭✭✭Leg End Reject


    You'd need more than a million to stop working.


  • Closed Accounts Posts: 1,497 ✭✭✭ Santino Chubby Munchies


    BDI wrote: »
    Buy good property during the recession and sell it during the boom. Rent it out in between. That’s how old money works.

    New money buys gold chains during the boom and sells them when they broke during a recession to old money types in cash for gold shops.

    "Be fearful when others are greedy. Be greedy when others are fearful." -- Warren Buffett


  • Registered Users Posts: 7,742 ✭✭✭Rows Grower


    You'd need more than a million to stop working.

    I know one particular chap who never did an honest days work in his life even though there is nothing physically wrong with him. He qualified for the pension recently which is an actual increase in state benefits every week for him.

    He has his own council house, free medical care and every other hand out you can think of. The council totally renovated the house as well about three years ago.

    "Very soon we are going to Mars. You wouldn't have been going to Mars if my opponent won, that I can tell you. You wouldn't even be thinking about it."

    Donald Trump, March 13th 2018.



  • Registered Users Posts: 2,634 ✭✭✭Sunny Disposition


    I know one particular chap who never did an honest days work in his life even though there is nothing physically wrong with him. He qualified for the pension recently which is an actual increase in state benefits every week for him.

    He has his own council house, free medical care and every other hand out you can think of. The council totally renovated the house as well about three years ago.

    This is one messed up place. Ridiculous cases like this up and down the country.


  • Registered Users Posts: 16,165 ✭✭✭✭Leg End Reject


    I know one particular chap who never did an honest days work in his life even though there is nothing physically wrong with him. He qualified for the pension recently which is an actual increase in state benefits every week for him.

    He has his own council house, free medical care and every other hand out you can think of. The council totally renovated the house as well about three years ago.

    Unfortunately I work, so don't get any of that. By the time I'd pay off debts and pay CGT I'd have a nice nest egg, not enough to live off for the rest of my life.


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  • Registered Users Posts: 582 ✭✭✭Hobosan


    Set 900k on fire. The remaining 100k will rise in value.


  • Registered Users Posts: 24,671 ✭✭✭✭Strumms


    If your great-aunt left you the money, the first €32,500 would be tax-free, and then you would pay Capital Acquisitions Tax of 33% on the remainder. So your million euro would be down to €680,725 straightaway.

    One of the implications of the current Irish taxation system.

    How will the state ‘know’ of your windfall ? Genuine question.


  • Registered Users Posts: 2,744 ✭✭✭marieholmfan


    I know one particular chap who never did an honest days work in his life even though there is nothing physically wrong with him. He qualified for the pension recently which is an actual increase in state benefits every week for him.

    He has his own council house, free medical care and every other hand out you can think of. The council totally renovated the house as well about three years ago.

    Fair play to him. Sounds like he has it sussed. No point not taking what you're owed.


  • Registered Users Posts: 16,165 ✭✭✭✭Leg End Reject


    Strumms wrote: »
    How will the state ‘know’ of your windfall ? Genuine question.

    Solicitor and probate. You wouldn't just be handed an envelope of cash.


  • Registered Users Posts: 3,405 ✭✭✭Ginger83


    Solicitor and probate. You wouldn't just be handed an envelope of cash.

    biscuit tin :D


  • Registered Users Posts: 24,671 ✭✭✭✭Strumms


    Solicitor and probate. You wouldn't just be handed an envelope of cash.

    Sounds like a complete rip off on the behalf of the state. Majority of that money earned by the deceased will be what they earned after tax, now its being taxed again...

    If I had a relative who pulled me aside and said.... “ look, you know I’ve not been in brilliant health, well things are going to get worse and I’ve been given 6-9 months... I’ve no kids, here is a cheque, dosh is yours 50,000, going to keep a few grand back for incidentals here and what’s left of that I’ll give to charity...

    Could the state come after you for their claim of the 50,000, is there a legal onus on you or your solicitor to disclose ?


  • Registered Users Posts: 16,165 ✭✭✭✭Leg End Reject


    Strumms wrote: »
    Sounds like a complete rip off on the behalf of the state. Majority of that money earned by the deceased will be what they earned after tax, now its being taxed again...

    If I had a relative who pulled me aside and said.... “ look, you know I’ve not been in brilliant health, well things are going to get worse and I’ve been given 6-9 months... I’ve no kids, here is a cheque, dosh is yours 50,000, going to keep a few grand back for incidentals here and what’s left of that I’ll give to charity...

    Could the state come after you for their claim of the 50,000 or how would they know ?

    You'll have to lodge that cheque and the bank will ask questions and alert revenue.

    Edit: Yes, the solicitor must disclose the transfer of assets to revenue. One of the first things you'll be asked for is proof of identity and PPS number.


  • Registered Users Posts: 20,259 ✭✭✭✭dxhound2005


    I know one particular chap who never did an honest days work in his life even though there is nothing physically wrong with him. He qualified for the pension recently which is an actual increase in state benefits every week for him.

    He has his own council house, free medical care and every other hand out you can think of. The council totally renovated the house as well about three years ago.

    He must be a close friend. I wouldn't tell that sort of information to strangers.


  • Registered Users Posts: 24,671 ✭✭✭✭Strumms


    You'll have to lodge that cheque and the bank will ask questions and alert revenue.

    That’s mad, so if I go to my bank on Monday, a cheque for 50,000 to be lodged they are entitled to ask where I came by the dosh and if not altogether satisfied then go and ring the revenue ?


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  • Registered Users Posts: 13,505 ✭✭✭✭Mad_maxx


    If your great-aunt left you the money, the first €32,500 would be tax-free, and then you would pay Capital Acquisitions Tax of 33% on the remainder. So your million euro would be down to €680,725 straightaway.

    One of the implications of the current Irish taxation system.

    My aunt hasn't left me anything, I was just posing a question about the best way to put money to work should someone ever come into it but thanks for the info


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