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28-09-2019, 17:14   #1
Mad_maxx
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Growing wealth

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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28-09-2019, 17:22   #2
BeerWolf
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28-09-2019, 17:26   #3
Agricola
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I'd contact Jacob Rees Mogg and ask him for advice on extremely short term investment opportunities..........
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28-09-2019, 17:28   #4
Professor Genius
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Originally Posted by Mad_maxx View Post
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
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28-09-2019, 17:45   #5
Srameen
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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.
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28-09-2019, 17:47   #6
Aint Eazy Being Cheezy
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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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28-09-2019, 17:49   #7
valoren
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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.

Last edited by valoren; 28-09-2019 at 17:54.
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28-09-2019, 17:57   #8
Upforthematch
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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.
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28-09-2019, 18:04   #9
Junkyard Tom
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Buy some land over in the West Indies and work some slaves on it.
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28-09-2019, 18:05   #10
Conall Cernach
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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.
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28-09-2019, 18:14   #11
Mad_maxx
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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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28-09-2019, 18:17   #12
dxhound2005
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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.
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28-09-2019, 18:18   #13
pearcider
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Originally Posted by valoren View Post
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.
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28-09-2019, 18:20   #14
mikemac2
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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
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28-09-2019, 19:01   #15
Permabear II
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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.

Last edited by Permabear II; 28-09-2019 at 19:07.
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