£4.5 million - enough to not have to work again?
Discussion
robt350c said:
Uncertain times ahead
https://www.youtube.com/watch?v=TnfKmNRfLYUAbsolutely this
Edited by SystemParanoia on Tuesday 24th January 13:16
Retiring at 45 would be an unusual choice. It creates a lot of leisure time and unless you are off to some remote island in the Bebrides to become a crofter you will likely end up spending more on leisure so it is worthwhile to step back and think through your lifestyle. If you want to live in central London for instance then you might need more than £4.5 million if you are including your house in your net worth.
The positive thing is that you are thinking about it. I am surprised at how many people get into their fifties without a clue as to how they will support themselves possibly for 30 years in their future.
The positive thing is that you are thinking about it. I am surprised at how many people get into their fifties without a clue as to how they will support themselves possibly for 30 years in their future.
SystemParanoia said:
robt350c said:
Uncertain times ahead
https://www.youtube.com/watch?v=TnfKmNRfLYUAbsolutely this
Edited by SystemParanoia on Tuesday 24th January 13:16
https://www.youtube.com/watch?v=wRdZTA0uyQI
NickCQ said:
SystemParanoia said:
robt350c said:
Uncertain times ahead
https://www.youtube.com/watch?v=TnfKmNRfLYUAbsolutely this
Edited by SystemParanoia on Tuesday 24th January 13:16
https://www.youtube.com/watch?v=wRdZTA0uyQI
https://www.youtube.com/watch?v=VLs09J_x6-c
NickCQ said:
Just make sure you avoid this
https://www.youtube.com/watch?v=wRdZTA0uyQI
As there can be consequenceshttps://www.youtube.com/watch?v=wRdZTA0uyQI
https://www.youtube.com/watch?v=UTJ4O10tRbM
SystemParanoia said:
NickCQ said:
Just make sure you avoid this
https://www.youtube.com/watch?v=wRdZTA0uyQI
As there can be consequenceshttps://www.youtube.com/watch?v=wRdZTA0uyQI
https://www.youtube.com/watch?v=UTJ4O10tRbM
https://www.youtube.com/watch?v=-WCFUGCOLLU
drainbrain said:
SystemParanoia said:
NickCQ said:
Just make sure you avoid this
https://www.youtube.com/watch?v=wRdZTA0uyQI
As there can be consequenceshttps://www.youtube.com/watch?v=wRdZTA0uyQI
https://www.youtube.com/watch?v=UTJ4O10tRbM
https://www.youtube.com/watch?v=-WCFUGCOLLU
https://www.youtube.com/watch?v=3QGMCSCFoKA
SystemParanoia said:
drainbrain said:
SystemParanoia said:
NickCQ said:
Just make sure you avoid this
https://www.youtube.com/watch?v=wRdZTA0uyQI
As there can be consequenceshttps://www.youtube.com/watch?v=wRdZTA0uyQI
https://www.youtube.com/watch?v=UTJ4O10tRbM
https://www.youtube.com/watch?v=-WCFUGCOLLU
https://www.youtube.com/watch?v=3QGMCSCFoKA
GG89 said:
SystemParanoia said:
drainbrain said:
SystemParanoia said:
NickCQ said:
Just make sure you avoid this
https://www.youtube.com/watch?v=wRdZTA0uyQI
As there can be consequenceshttps://www.youtube.com/watch?v=wRdZTA0uyQI
https://www.youtube.com/watch?v=UTJ4O10tRbM
https://www.youtube.com/watch?v=-WCFUGCOLLU
https://www.youtube.com/watch?v=3QGMCSCFoKA
https://www.youtube.com/watch?v=zXKuyRcwbJg
drainbrain said:
GG89 said:
SystemParanoia said:
drainbrain said:
SystemParanoia said:
NickCQ said:
Just make sure you avoid this
https://www.youtube.com/watch?v=wRdZTA0uyQI
As there can be consequenceshttps://www.youtube.com/watch?v=wRdZTA0uyQI
https://www.youtube.com/watch?v=UTJ4O10tRbM
https://www.youtube.com/watch?v=-WCFUGCOLLU
https://www.youtube.com/watch?v=3QGMCSCFoKA
https://www.youtube.com/watch?v=zXKuyRcwbJg
https://www.youtube.com/watch?v=gUhRKVIjJtw
SystemParanoia said:
drainbrain said:
GG89 said:
SystemParanoia said:
drainbrain said:
SystemParanoia said:
NickCQ said:
Just make sure you avoid this
https://www.youtube.com/watch?v=wRdZTA0uyQI
As there can be consequenceshttps://www.youtube.com/watch?v=wRdZTA0uyQI
https://www.youtube.com/watch?v=UTJ4O10tRbM
https://www.youtube.com/watch?v=-WCFUGCOLLU
https://www.youtube.com/watch?v=3QGMCSCFoKA
https://www.youtube.com/watch?v=zXKuyRcwbJg
https://www.youtube.com/watch?v=gUhRKVIjJtw
https://www.youtube.com/watch?v=GtLNCmsJVFI
Ginge R said:
A nice problem to have, but a problem nonetheless.
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.
Theoretically, what is to prevent a director remaining paid salary + dividends but instead of doing principle business just spending their days playing golf/sailing/whatever the fook they want for the remainder of their years? Is there any advantage to strict closure of the business?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.
Similarly, in terms of passing the money down to children or any others, could one not simply employ them as a director, pay them salary + divs to distribute funds - albeit if they have their own income they will be subject to usual tax in addition to any earnings they may already have?
LeoSayer said:
DarylB90 said:
If I had that sort of money I'd buy 15 houses for £250K each and rent them all out for £1000 a month and live off that.
Why would you keep it in the bank?
Because the objective is not to work again.Why would you keep it in the bank?
Sheepshanks said:
...and if you took a "hands-off" approach and let someone else take care of everything it's hardly worth doing by the time you've paid them, and tax etc.
Oh I don't know. I think even on a bad year you'd end up with £100k in the personal account. Ok, on PH that's peanuts, but most people could survive on it.Gassing Station | Finance | Top of Page | What's New | My Stuff