£4.5 million - enough to not have to work again?
Discussion
drainbrain said:
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.Someone has to select the properties, choose a manager, agree terms of business, choose an accountant, choose a lawyer, perform ongoing reviews and get them working together.
Stuff needs signing eg. annual accounts, legal contracts, questions need answering from time to time.
LeoSayer said:
drainbrain said:
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.Someone has to select the properties, choose a manager, agree terms of business, choose an accountant, choose a lawyer, perform ongoing reviews and get them working together.
Stuff needs signing eg. annual accounts, legal contracts, questions need answering from time to time.
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?
That's my plan but on a more modest scale. Why would you keep it in the bank?
4.5 will be fine I'm sure, be better to re-invest into something that will bring in money for you and maintain the capital. OP seriously put the money into property to rent out. There are good areas where you can get a good return. If you are thinking of doing this in my area Sussex I would be pleased to guide you in the right directions of what sort of properties and income to expect. We don't sell house but concentrate on lettings hence why we are impartial and give good advice to landlords before they buy to help them find the best properties to rent out.
4.5m spent on 25 properties costing £180K each, each renting for 900pm gives an annual income of £270K.
£270K minus 20% for agency fees + maintenance leaves £216K.
£216K minus 40% tax leaves £130K give or take. (Yes I'm aware that 40% tax is not taken from the entire amount but going for worst case scenario here).
What this all means is that OP could have £60K a year, AFTER TAX, and STILL have £70K spare PLUS enjoy the capital appreciation. Keep buying properties at the rate of one every 2/3 years and that only improves things.
Given that property, long-term, only goes up, you'd have to be a complete muppet to actually "worry" about having to return to work.
Where the worry comes from is constantly wondering if your money could be earning more invested elsewhere.
As I've just demonstrated, life is rosy enough to not worry about it and enjoy what you have.
Feel free to shoot down my basic man-maths.
£270K minus 20% for agency fees + maintenance leaves £216K.
£216K minus 40% tax leaves £130K give or take. (Yes I'm aware that 40% tax is not taken from the entire amount but going for worst case scenario here).
What this all means is that OP could have £60K a year, AFTER TAX, and STILL have £70K spare PLUS enjoy the capital appreciation. Keep buying properties at the rate of one every 2/3 years and that only improves things.
Given that property, long-term, only goes up, you'd have to be a complete muppet to actually "worry" about having to return to work.
Where the worry comes from is constantly wondering if your money could be earning more invested elsewhere.
As I've just demonstrated, life is rosy enough to not worry about it and enjoy what you have.
Feel free to shoot down my basic man-maths.
Open a SB account, go long on gbp/jpy to 147.5
Market is currently 500 points away from the target, if you went in with £300 a point you'd would make 150K
I would set the stop loss 100 points away which means you are risking £30k(less than 1%).
Entry:143.0
Stop: 142.0
Target: 148.0
RR: 1-5
!!!PROFIT!!!!
Market is currently 500 points away from the target, if you went in with £300 a point you'd would make 150K
I would set the stop loss 100 points away which means you are risking £30k(less than 1%).
Entry:143.0
Stop: 142.0
Target: 148.0
RR: 1-5
!!!PROFIT!!!!
Edited by SkrrSkrr on Wednesday 25th January 13:57
drainbrain said:
Well, I reckon with £4.5M I could arrange him a portfolio which could potentially gross £500kpa and realistically leave him £250-£300k after all costs inc. tax and possibly much better with some skilled tax accountancy and tax planning.
Does that scale downwards? ie for a million, could you get me £100K?
Sheepshanks said:
drainbrain said:
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.
That's 2.2% nett - hardly seems worth it, especially as it's not guaranteed.SkrrSkrr said:
Open a SB account, go long on gbp/jpy to 147.5
Market is currently 500 points away from the target, if you went in with £300 a point you'd would make 150K
I would set the stop loss 100 points away which means you are risking £30k(less than 1%).
Entry:143.0
Stop: 142.0
Target: 148.0
RR: 1-5
!!!PROFIT!!!!
If the title of the thread was "What's the quickest was to spend £4.5million" this would be the asnwer ;o)Market is currently 500 points away from the target, if you went in with £300 a point you'd would make 150K
I would set the stop loss 100 points away which means you are risking £30k(less than 1%).
Entry:143.0
Stop: 142.0
Target: 148.0
RR: 1-5
!!!PROFIT!!!!
Edited by SkrrSkrr on Wednesday 25th January 13:57
OP, if £60k a year with only living expenses is a "modest" living to you then gawd knows what you could spend... But to the vast vast majority of 55 years olds £4.5million is more than enough to retire on, you won't need any fancy investment vehicles or to risk much capital, just buy some inflation linked bond type things and some stock market tracking funds and enjoy your life, there's a good chance you children could live of it too.
456GT said:
red_slr said:
If you read Mr Money Moustache forums (finance / early retirement forum)
....
This is life-changing stuff, one of the most useful blogs I've read in a long while.....
Thank you, sir!
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