sarasquares

iTrader: (1)

If you were sensible, bought a house for about £250,000 or less and left the rest in the bank and lived off the interest, could it last till you died without you having to work again?

I dont know what the interest would be so someone else would have to do the sums.

Cylon2007

You could but it would have to be a frugal life

DCI Gene Hunt

No, it's around £3.5 million rising weekly, so ******** a footballers not going to get you that comfortable retirement package, may have to do a couple of politicians as well....

astraboy

I remember reading that 4.5million was the minimum needed to never work again and live like a hog in the fat house while you do it.

1 million would remove a lot of financial obsticles in your life, but personally, I think you'd need to work still.
astraboy.

DYK

Have you got a million pounds ,and come here looking for advice what to with it..

Myles

iTrader: (40)

Dont think you could. OK you'd have the house, but the fact that the money was there would be enough to make me dip into it. I dont even think the insurance would be that great, especially at the mo!

Think at 2%, it will be £15000. Anyone confirm this?

stevebt

iTrader: (8)

If you had £1m it would be stupidity to spend a chunk of that on a house when the interest on the money would pay for the mortgage and other spends.

ROCKETMQ1

iTrader: (1)

4% of £700,000 is £28,000 a year with No mortgage! I say I would retire!

Spoon

Live off it yes. Live off it extremely comfortably with it left in the bank at current rates no. If you have something about you though then your lifestyle on £750,000 without a mortgage, (as per your scenario, although not the best route), can be comfortable depending on your 'needs'. 10% is £75,000/year after all said and done if you make it work.

sarasquares

iTrader: (1)

I did say in my first post 'if you were sensible'. It wouldn't take long to buy a house from the interest then live off the million pound interest. What interest a month would a million generate?

GC8

It depends on the interest rate. The answer now will be very different to the answer had you asked this in August 2008.

Trout

iTrader: (1)

But in 20 years time £28k wouldn't be worth very much. This is the key problem.

You need to earn interest and grow the capital base at the same time. So assuming you can get 4% you will need to reinvest half of it and keep half of it.

Assuming £1m, buy a house for £250k then you will be living off £10-12k a year for life.

It's just not enough.

DCI Gene Hunt

The missing link in this thread is inflation - this is what wipes out the worth of £1million over a given period, in 10 years 10% of a million is worth a lot less than today.

ROCKETMQ1

iTrader: (1)

Don't forget you still have £750,000 to spend a little way down the line! I wouldn't be leaving that in the bank for the tax man when I pop my clogs!

Trout

iTrader: (1)

Of course you could live on £50k a year for 15 years. But what do you do then?

If you have three years to live - fill yer boots.

But know one knows and even someone who is 60 could have another 25-30 years.

This is why you would want to protect your capital unless you were sure you were going to die!

Unless of course you had a solid pension and you knew your retirement age!

njkmrs

In answer to your question ...

"yes I could happily retire on that sort of sum .!!!!"

It all depends on how carried away you get I suppose .I personally ,would move somewhere warm and sunny and live quite a simple life in a reasonable size home ,without any hassle .Age 40

Go on ,Do It .!!!!!

jonny_693

iTrader: (5)

Be better off renting a nice house, say £1000 a month. That way you would have more in the bank gathering interest.

scud8

iTrader: (1)

Assuming inflation averages around 2%, you would need an average return of about 7% to get an income in the £30-40K a year range (before tax) and still be growing your capital in line with inflation. You would strugge to get 7% with no risk to your capital, but you could probably achieve it as an average over a reasonable timeframe with a medium level of risk. However the return would not be smooth, and you would undershoot or even lose money some years - so if you are relying on the income to live off you may starve unless you have a buffer.

You could look at a strategy where you bought the house for £250K, kept £100K as a buffer, and then invested £650K in a medium risk portfolio for growth and income. I think if I were in this position I would be tempted to keep working for a few more years saving what I could since I wouldn't have a mortgage.

If you really do have the money go and see your bank - they will fall over themselves to put something together for you!

apples24

iTrader: (1)

pic a new housing estate build, buy 4 houses next to eachother live in one? prob 2400 a month in rent coming in

thinking about it its a crap ideal lol, a million generates a grand a week interest doesnt it?

mind you bricks and mortar are safer than banks

subaruturbo_18

build 4 houses and sell them, profit into bank and live off interest, build 4 more houses, profit into bank and live off more interest. Then build 5-8 houses at once, sell then half into bank half into investment etcetc


If you are wise with money/investment then a million pounds is a great starter to "spend money to make money"

Jamz3k

when you consider that a top-spec hooker can cost upto and over 5000 great english pounds plus rental of hotel rooms, i really couldn't see a million lasting me over 6months.

lordharding

iTrader: (1)

yes you can have a great life but might struggle on the interest and living costs in the uk

I have a place in cebu and live like a dozen kings on £100 per week """
where the weekly wage is a tenner and £15 if your a professional ""
I only stay in this country and work as i enjoy it at the moment but looking forward to my early retirement in 5 years and 8 minths and 3 days

i will get £500 rental from my house per month and enjoy myself on the pleaseures in life

subaruturbo_18

next week's euro millions sounds good to me

EddScott

I would say you would still need to work but looked after carefully shouldn't really have any money worries again.

I certainly wouldn't just live it in the bank thats for sure.

john banks

Not the way I would do it, but £1m would buy an annuity for a couple that would give an average household income rising at 3% pa, if you are age 50. Quite sobering really.

EddScott

Good idea in principle but unlikely to have any sort of death benefits.

Annuity starts, one payment made, couple die in car crash, no more payments. Insurers win.

Put £200K on deposit
Pay off mortage or find somewhere nice for c£200,000 (plenty for round here anyways)
Spend £100K on house, cars, stuff.
Invest £500K - I'm a balanced to cautious investor so whatever asset allocation suits my profile.
In 25 years that £500K should have increased suitably to allow a comfortable retirement at 55.

You would have to keep working although you could then choose your job, take a pay cut to do something you actually enjoy.

If I could, I'd go to Uni and do the Motorsport degree in Swansea.

SJ_Skyline

Another option would be to buy 4 houses at 250k each and rent them out at 1250 a month. £60K income a year and you still have the capital in the houses which may well grow over time.

PaulC72

SS yes easily and the older you get the easier it would become ;-)

ALi-B

iTrader: (1)

Short answr; Yes, quite easily - if you were single .

But only via a humble lifestyle and doing consistant monitoring of investment and asset managment. Funds will not last long living like a footballer's WAG.

So no new cars, no silly expensive house (the bigger the house, the more it costs to run in rates and utilities), and no lavish gifts to oneself or partners/kids.

Everything spent must be in either to live (food, bills etc.) or on wise investment (no buy to(i)letting - that sector is saturated ). Investments must gain enough interest to cover annual living costs (including tax) AND inflation. It won't do that sat in a bank.

A millionaire's lifestyle is pretty pants TBH; you need a higher goal post - so marry someone richer