Net worth you would be content with? Watch

balotelli12
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#21
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#21
What do you mean by net worth?
Cash
Property
Pension pots
Investments
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balotelli12
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#22
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#22
I doubt you could provide for any sort of future with a million.

My pension pot alone is nearly worth that. Add on house costs, investment for income you wouldn't find a million going far.
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Quady
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#23
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#23
(Original post by balotelli12)
I doubt you could provide for any sort of future with a million.

My pension pot alone is nearly worth that. Add on house costs, investment for income you wouldn't find a million going far.
The only person to mention £1m has said they'd have to live frugally.

Still you could get a two bed place in the north/Scotland for £100k, put 900k into a FTSE tracker and get a little over £20k after tax. The dividend should rise with inflation.
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Runninground
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#24
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(Original post by rockrunride)
Don't particularly agree with 'worth' being used in this semantic context. A loaf of Hovis white bread is worth £1.35 in Tesco. I'm a human, I have no worth.
How much you are worth is just adding up all of your assets take away your liabilities. Everyone has a net worth, there is nothing wrong with it.

That loaf of bread in Tesco is a different kind of worth- it's worth £1.35 because the customer is paying for the costs involved in making the bread. It has a 'worth' (value) because it's going to be sold. Humans aren't going to be sold so their 'worth' is just working out how much money can be made if everything was sold and paid off. It's useful to know, especially when you're thinking about taking out a loan (If your net worth is less than the amount of the loan then it's going to be risky to take out that loan).
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Runninground
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#25
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#25
(Original post by Caedus)
£1M would be my price to drop completely out of working life and formal education. I'd have to live quite frugally, however.
Assuming you're 25 (it's a guess) and you die at 90 (it's a guess) then that would give you a yearly income of just under £15.5k. I don't think it's worth dropping out of work and education just to be paid £15.5k a year for doing nothing. It would be pretty boring and you'd soon use that money up with all your free time.
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lolwhatisthis
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#26
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#26
hey, **** you BILL GATES!!
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Caedus
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#27
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(Original post by Runninground)
Assuming you're 25 (it's a guess) and you die at 90 (it's a guess) then that would give you a yearly income of just under £15.5k. I don't think it's worth dropping out of work and education just to be paid £15.5k a year for doing nothing. It would be pretty boring and you'd soon use that money up with all your free time.
If interest rates were at 1% I would still make £10,000 per year. I believe £1M would be more than enough to live on, plus I would dedicate my time to family & the pursuit of knowledge so I doubt I'd get too bored .
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Alfissti
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#28
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(Original post by Bill_Gates)
For me personally a good £1.25 million is perfect and i'd give up everything to just sit on a lounger and play the next gen of consoles.

What is it for you realistically?
£1.25m?? That's very little in today's money especially considering how little it will generate and presumably part of that £1.25m is also your primary residence. I wouldn't be planning on lounging about and being on the console just yet unless of course you're going to be surviving on crap from Aldi and Lidl

As for myself, I don't limit myself as when it comes to wealth the more the merrier as money = power = freedom.

I suppose I would slow down a bit once I hit that £15m net worth, would take a while for that to happen as it's easy to have £15m in assets but in net assets is very tough, currently only the home in England is free of a mortgage as it was purchased off my late granddad for below market value and when he passed on the remainder was written off. Home in Norway we re-mortgage it every year for working capital for our businesses in Norway and also for tax reasons as a fully paid up home makes it very difficult to avoid wealth tax. The homes don't bring me anywhere near the £15m target.

Working towards having that £15m net worth, I reckon it'd take me at least 20 years or more to get there.
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Blazinq
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#29
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15m~
For a nice pent house in the city, and a country home.
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-TheSpecialOne-
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#30
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#30
About 500 million would be my preferred sum.
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Quady
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#31
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#31
(Original post by Alfissti)
£1.25m?? That's very little in today's money especially considering how little it will generate and presumably part of that £1.25m is also your primary residence. I wouldn't be planning on lounging about and being on the console just yet unless of course you're going to be surviving on crap from Aldi and Lidl

As for myself, I don't limit myself as when it comes to wealth the more the merrier as money = power = freedom.

I suppose I would slow down a bit once I hit that £15m net worth, would take a while for that to happen as it's easy to have £15m in assets but in net assets is very tough, currently only the home in England is free of a mortgage as it was purchased off my late granddad for below market value and when he passed on the remainder was written off. Home in Norway we re-mortgage it every year for working capital for our businesses in Norway and also for tax reasons as a fully paid up home makes it very difficult to avoid wealth tax. The homes don't bring me anywhere near the £15m target.

Working towards having that £15m net worth, I reckon it'd take me at least 20 years or more to get there.
More money doesn't bring more freedom, it brings more intrusion.

Most people on 40k don't have to survive on LIDL/ALDI, so why would someone living ont he dividend yield of 1.25m?
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Quady
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#32
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#32
(Original post by Runninground)
Assuming you're 25 (it's a guess) and you die at 90 (it's a guess) then that would give you a yearly income of just under £15.5k. I don't think it's worth dropping out of work and education just to be paid £15.5k a year for doing nothing. It would be pretty boring and you'd soon use that money up with all your free time.
Where do you get £15.5k from?

The FTSE yields 3%, so more like £27k after tax.
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Alfissti
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#33
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#33
(Original post by Quady)
More money doesn't bring more freedom, it brings more intrusion. Most people on 40k don't have to survive on LIDL/ALDI, so why would someone living ont he dividend yield of 1.25m?
He said a networth of £1.25m, that presumably would include a house to lounge about to play with the latest consoles. Therefore since the average home in England £250k that immediately cuts your portfolio down. Presumably someone with £1m won't be staying in a ****hole or anywhere north of Solihull. Of the top of my head and if I'm not wrong the average FTSE100 dividend yield for this year is 3.4-3.7% with the rare exception of SSE and a few others paying in the 6% range, you'd struggle to get £40k per annum in disposable income. You don't think money buys you freedom? Good luck the next time you're out of money and would like a lawyer
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Quady
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#34
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#34
(Original post by Alfissti)
He said a networth of £1.25m, that presumably would include a house to lounge about to play with the latest consoles. Therefore since the average home in England £250k that immediately cuts your portfolio down. Presumably someone with £1m won't be staying in a ****hole or anywhere north of Solihull. Of the top of my head and if I'm not wrong the average FTSE100 dividend yield for this year is 3.4-3.7% with the rare exception of SSE and a few others paying in the 6% range, you'd struggle to get £40k per annum in disposable income. You don't think money buys you freedom? Good luck the next time you're out of money and would like a lawyer
Sure have a house out of it, £1m and no rent/mortgage costs. Lets take £1m as the figure.
I hope a new freehold house in Witney would do
http://www.rightmove.co.uk/new-homes...-43262246.html

Actually I was using the All Share not the 100. Lets split the difference and say 3.3%

So you'd get 30k after tax. The same as someone on 40k after income tax and NI.

You only need a lawyer if you're rich, normal people don't get intrusion that warrents a super injuction.
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Ice_Queen
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#35
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#35
I'm not bothered. If I can pay my house off and keep the electric on I am happy.
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Sun_Bear
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#36
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#36
(Original post by Quady)
You wouldn't have much money to play with though.

1.25m would generate a little over 30k after tax. Your living expenses would be around 20k. In which case your gorwing your cpaital by a little over 1% ie less than inflation.

You need to be getting returns of 5%+ in the current market after deductions, which I don't think I could do :P
My dad owns property which he rents out and gets ~7% return and that isn't his job.
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Quady
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#37
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#37
(Original post by Sun_Bear)
My dad owns property which he rents out and gets ~7% return and that isn't his job.
Thats quite impressive.

Presumeably not using an agent then or paying tax on the income?
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Sun_Bear
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#38
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#38
(Original post by Quady)
Thats quite impressive.

Presumeably not using an agent then?
No agent at the moment, he only has like 7 houses which he manages at the moment. With an agent it would probably be more like 4%
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Jay84
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#39
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#39
no joke but £0

After being comically far in the red for so long, it will feel relaxing to have nothing rather than a minus.

I gave a homeless guy a fiver yet, technically, he was £60,000 richer than me at the time.
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Rakas21
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#40
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#40
(Original post by Bill_Gates)
For me personally a good £1.25 million is perfect and i'd give up everything to just sit on a lounger and play the next gen of consoles.

What is it for you realistically?
Interesting thread OP.

For me this is rather complicated as there are many levels and aims..

The absolute ceiling (where i'd start doing a Gates and giving money away to Africa) is $10bn, at that point i would have the wealth and connections to together with a few other billionaires fund what i'd call the 'Eureka Institute' and make significant inroads into space technology in terms of propulsion, weapons and ships (imagine 10 billionaires each providing £5bn each) in addition to exploiting space mining already in development. That would make me die with a smile on my face.

The minimum floor at which i would start to place working less above increased pay is at a net worth of around $1m as that would allow me a great car (Bentley Flying Spur), build my own property and have an apartment in the city with an annual income able to allow me a few holidays a year ect..

In terms of annual income anything above £50k is sufficient for a life of relative luxury and to be trouble free.

Like you i would of course make investments. One idea i had was to gain citizenship of other Anglosphere countries (USA, Canada, Australia) as in addition to Europe they are largely transparent markets and there'd be plenty of opportunity.
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