How much in assets until someone is considered rich in the UK?

When you have 200K+ in the stock market, 600-700K in property, 100-200K in cash

Reply 2

Original post by James.Carnell

A few million? I appreciate that some people have their net financial value tied up in assets so I am not counting hard and fast liquid cash as the measure of wealth.

Depends what you mean by "rich"...

The top 1% by Net Worth have approx £3m per household (including all assets such as property, pensions, savings, cars, household goods - less any liabilities such as mortgages, loans, etc)

http://uk.businessinsider.com/ons-chart-on-wealth-inequality-in-britain-2015-12

Reply 3

2016_GCSE

2

785,533.62 British Pound = 1 Million Dollars.

Reply 4

James.Carnell

OP

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My definition of rich is someone who can go out and buy a new luxury car or two without really thinking of the money much.

Reply 5

Original post by jneill

Depends what you mean by "rich"...

The top 1% by Net Worth have approx £3m per household (including all assets such as property, pensions, savings, cars, household goods - less any liabilities such as mortgages, loans, etc)

http://uk.businessinsider.com/ons-chart-on-wealth-inequality-in-britain-2015-12

What about securities? Bonds? Stocks? Options?

You can have a lot of your wealth in Stock, like most billionaires.

Reply 6

House 500k+
Stock Market 100k
Pension 1 mil

Reply 7

Original post by rambapa

When you have 200K+ in the stock market, 600-700K in property, 100-200K in cash

what about pension brah

Reply 8

Original post by citibankrec

what about pension brah

pension = stock market

these pension funds dump money in the stock market

I'd rather take out a SIPP and pick my own investments, rather than let a fund manager buy barclays right before the financial crash in 2007.

Reply 9

Original post by rambapa

pension = stock market

these pension funds dump money in the stock market

I'd rather take out a SIPP and pick my own investments, rather than let a fund manager buy barclays right before the financial crash in 2007.

200K+ for pension and inv seems low imo

Reply 10

Original post by rambapa

What about securities? Bonds? Stocks? Options?

You can have a lot of your wealth in Stock, like most billionaires.

Yes that's all included.

But Billionaires are the top 0.0002% :smile:

- there's only 120 of them in the UK...

And their assets are mostly in the shares of the companies (or land) they have founded (or inherited).

Reply 11

Original post by citibankrec

200K+ for pension and inv seems low imo

Yeah it is...

just have 200k in the stock market, will give you 8-10k a year for doing nothing in dividends.

Reply 12

Original post by rambapa

Yeah it is...

just have 200k in the stock market, will give you 8-10k a year for doing nothing in dividends.

is a mil for pension pot decent

Reply 13

Original post by rambapa

pension = stock market

these pension funds dump money in the stock market

I'd rather take out a SIPP and pick my own investments, rather than let a fund manager buy barclays right before the financial crash in 2007.

How do you know you can you pick better stocks than a professional fund manager? How many pension fund managers bought Barclays right before the crash? And did they only hold Barclays or did they spread the risk?

Reply 14

James.Carnell

OP

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Original post by rambapa

Yeah it is...

just have 200k in the stock market, will give you 8-10k a year for doing nothing in dividends.

What funds?

Buffett advocates investing into index tracker funds with the lowest running costs.

Reply 15

Original post by jneill

How do you know you can you pick better stocks than a professional fund manager? How many pension fund managers bought Barclays right before the crash? And did they only hold Barclays or did they spread the risk?

Because I have 23.5k in the stock market and made 2k in 3 months after brexit.

some of my holdings...

galliford try (ftse 250)- bought at 1003p
interserve (ftse aim) - bought at 316p
BP (ftse 100)- bought at 361p
paragon group of companies (ftse 250)- bought at 294p

I have outperformed most funds. I have a background in finance either way, so I have the knowledge and experience to beat them.

Reply 16

Original post by James.Carnell

What funds?

Buffett advocates investing into index tracker funds with the lowest running costs.

no stock pick, you can get higher returns.

look for low P/E, good dividend cover, good dividends, good profit and low debt. make sure the business is sound as well. always buy on a correction.

Reply 17

Original post by James.Carnell

My definition of rich is someone who can go out and buy a new luxury car or two without really thinking of the money much.

So let's work that through. How much money would you spend without really thinking too much about it...?

Let's say you have £1000 in you bank account, I think you'd be happy to spend £10 without thinking much about it, but £100 would cause you pause...?

Well if a luxury car is, say £50k, then two is £100k. For that not to be a "noticeable" spend it would need to be less than 1% of their liquid assets. So that's £10 million in cash before you'd "notice". Not Net Worth... cash. To be likely to have £10 million sitting in cash I'd say you'd need £100 million in net assets. Or probably more. And rich people don't allow cash to just sit around - it's always invested in something...

Reply 18

James.Carnell

OP

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Original post by rambapa

no stock pick, you can get higher returns.

look for low P/E, good dividend cover, good dividends, good profit and low debt. make sure the business is sound as well. always buy on a correction.

How much do you invest into each holding to spread the risk? You say you took a course (presumably university) to get to a sound level of understanding, what course would that be?

Just curious as I have savings and an academic background in company law , but I want to increase my level of knowledge in the markets.

Reply 19