£4.5 million - enough to not have to work again?
Discussion
Planning for the future and an unstable job future....
Wife, two young children, house paid off, don't have a need for a majorly expensive lifestyle - say £50-60k per annum more than enough for the family.
Worse case scenario that work is not a future option, would this be enough to live from comfortably - age 46?
Funds held in a mixture of pension, isa, company.
Thoughts appreciated in advance.
Wife, two young children, house paid off, don't have a need for a majorly expensive lifestyle - say £50-60k per annum more than enough for the family.
Worse case scenario that work is not a future option, would this be enough to live from comfortably - age 46?
Funds held in a mixture of pension, isa, company.
Thoughts appreciated in advance.
Edited by robt350c on Saturday 21st January 23:12
If you're happy with a modest lifestyle it should just about work. The danger is inflation eroding the value of the interest that you live on. 1% interest is £45k which would work now for someone living sensibly, but in 10 ... 20 ... years? Of course, if interest rates went up it'd work better.
Find a good Personal Finance Adviser (one personally recommended to you by someone you know reasonably well), and take advice. I did, some of my capital was invested for me in the stock market, and I am not complaining.
Seriously, you must do something with some of the money, because interest rates in bank/building society accounts are abysmal right now.
Seriously, you must do something with some of the money, because interest rates in bank/building society accounts are abysmal right now.
Am I missing something here?
£4.5m - would you be able to get an annual interest rate of 2.5% compounded monthly? Doesn't sound excessive?
Anyway, if you did that, and withdrew £8k per month, increasing with inflation at current rates, in 40 years time you'd still have nearly £2m in the bank.
On the other hand, if you've done well enough to accumulate cash and investments of £4.5m at 46, then why do you need to ask this question on a motoring forum?
£4.5m - would you be able to get an annual interest rate of 2.5% compounded monthly? Doesn't sound excessive?
Anyway, if you did that, and withdrew £8k per month, increasing with inflation at current rates, in 40 years time you'd still have nearly £2m in the bank.
On the other hand, if you've done well enough to accumulate cash and investments of £4.5m at 46, then why do you need to ask this question on a motoring forum?
ks sake 
robt350c said:
Planning for the future and an unstable job future....
Wife, two young children, house paid off, don't have a need for a majorly expensive lifestyle - say £50-60k per annum more than enough for the family.
Worse case scenario that work is not a future option, would this be enough to live from comfortably - age 46?
Funds held in a mixture of pension, isa, company.
Thoughts appreciated in advance.
A nice problem to have, but a problem nonetheless.Wife, two young children, house paid off, don't have a need for a majorly expensive lifestyle - say £50-60k per annum more than enough for the family.
Worse case scenario that work is not a future option, would this be enough to live from comfortably - age 46?
Funds held in a mixture of pension, isa, company.
Thoughts appreciated in advance.
Edited by robt350c on Saturday 21st January 23:12
How much is illiquid in the company - have you addressed entrepreneurs tax relief if you're walking away? If you died today, then £1.40 in the bank right now would probably be sufficient to see you to the end. But, if addressing matters beyond your lifespan is also important, have you put in place inter-generational protection and/or protection for your widow? Or, if you liquidate the lot and you're sitting on a pile, have you considered the impact of inheritance tax? Have you inherited any of your wealth? If so, you have two years to shuffle on new assets to the next generation, to get around some taxation problems. How will you drawdown, and in what sequence? Do you intend to leave the pension untouched for any beneficiaries, for instance?
On a strictly linear basis, drawing down from funds that size shouldn't present a problem. Real life however, is rarely as simple as the maths would want us to believe.
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