How much money do you need to give up work?
Discussion
Was chatting this through with a few friends who do alright for themselves and one is about to sell his shares in a business.
Most of us agreed that if you had your house paid off and a sizeable cash sum in the bank (£500k?) you could give up your day job.
Said friend will be £1m better off after selling his shares.
What are your thoughts?
Most of us agreed that if you had your house paid off and a sizeable cash sum in the bank (£500k?) you could give up your day job.
Said friend will be £1m better off after selling his shares.
What are your thoughts?
I guess ultimately it boils down to how old you are, what money/property you already have and what sort of standard of living you want.
Personally at the age of 48 I could easily retire on £1 million, but it would hardly be new cars and first class flights everywhere. But then none of that is important to me, so I would be more than happy flying economy and tinkering with a shed.
I think I would have to use a chunk of it to buy a couple of BTL properties as otherwise that money would just slowly but surely burn away.
Personally at the age of 48 I could easily retire on £1 million, but it would hardly be new cars and first class flights everywhere. But then none of that is important to me, so I would be more than happy flying economy and tinkering with a shed.
I think I would have to use a chunk of it to buy a couple of BTL properties as otherwise that money would just slowly but surely burn away.
Entirely depends how many years you are from expected retirement and what your net income is and how you view inflation over those remaining years.
If you take home £30k and have 6 months to go to retirement, then you'd probably take just £15k to walk away from work.
If you're 25 years old, working in the City as a high flyer, then you'll be asking for tens of millions.
If you take home £30k and have 6 months to go to retirement, then you'd probably take just £15k to walk away from work.
If you're 25 years old, working in the City as a high flyer, then you'll be asking for tens of millions.
Carlton Banks said:
What are your thoughts?
It completely depends on your circumstance. A 20 year old with no savings, on low wage will have a completely different requirement to a 55 year old on a larger wage and has a large pension pot and savings.
Personally, a lot. But it depends on how long you expect to live, how much you expect to spend, how much you currently earn, and how 'comfortable' you want to be.
Cue lots of PH elevenserife-ing. Those who could retire now with 10p, those who couldn't possibly do it on less than £20M.
Cue lots of PH elevenserife-ing. Those who could retire now with 10p, those who couldn't possibly do it on less than £20M.
Impossible for me to put a reasonable figure on it at the moment.
Circumstances change as mine did.
Should be mortgage free now at 45, I’m not.
Relationship break up put that one down s
t creek.
Now in my own property so savings pretty much diminished due to that - purchase and work needed doing.
So my long term savings plan has now been put back by 10 yrs. I’m mortgage free at 55 now.
Until then I have no idea on numbers - circumstances could change again !
Back in 10 yrs with an answer lol
Circumstances change as mine did.
Should be mortgage free now at 45, I’m not.
Relationship break up put that one down s
t creek. Now in my own property so savings pretty much diminished due to that - purchase and work needed doing.
So my long term savings plan has now been put back by 10 yrs. I’m mortgage free at 55 now.
Until then I have no idea on numbers - circumstances could change again !
Back in 10 yrs with an answer lol
alock said:
Carlton Banks said:
What are your thoughts?
What's a nice evening out for you?- £300/head Michelin star restaurant.
- £60/head local restaurant.
- £20/head takeaway.
- £1/head flask of soup on the beech.
To survive until pension age, not taking into account inflation; about £2 million, which covers my current wages and pension contributions for the next 32 years, and pays off current mortgage and debts. Realistically, I'd want at least double, maybe £5 million to quit and never work again. Even if I won £1-2 million, I probably wouldn't quit working, my job is relatively easy, no accountability, and it's pays decently for where I live, would treat wages as money for booking holidays.
Could probably get there with a million if it was tax free?
£200k to pay off the mortgage.
£20k to pay off the car loan.
Leaves £2,600 per month if I whittle it down to nothing over the next 25 years.
Once you take the mortgage and car loan off the list c.£1,200 a month we don't need a ridiculous amount of cash.
Monthly expenditure / savings pots are at the moment around £1,000;
£200 per month for bills
£300 per month for food and booze
£50 per month for clothes??
£200 per month for a nice holiday every year
£60 per month for friends and family birthday and xmas
£100 per month for car insurance, MOT, service etc
After the mortgage and car payments we really don't have an extravagant lifestyle. One of our neighbours runs fundraising events for one of the big cancer charities so I would probably join up with them to keep me busy.
Of course £10m would bring a whole new level of options.
£200k to pay off the mortgage.
£20k to pay off the car loan.
Leaves £2,600 per month if I whittle it down to nothing over the next 25 years.
Once you take the mortgage and car loan off the list c.£1,200 a month we don't need a ridiculous amount of cash.
Monthly expenditure / savings pots are at the moment around £1,000;
£200 per month for bills
£300 per month for food and booze
£50 per month for clothes??
£200 per month for a nice holiday every year
£60 per month for friends and family birthday and xmas
£100 per month for car insurance, MOT, service etc
After the mortgage and car payments we really don't have an extravagant lifestyle. One of our neighbours runs fundraising events for one of the big cancer charities so I would probably join up with them to keep me busy.
Of course £10m would bring a whole new level of options.
Broadly speaking:
£2m and I take an easier job, part time.
£3m and I quit work for financial gain. I would consider some sort of voluntary activity.
It's not just how much money you need to survive, it's how much money you need to keep you occupied. You can't spend the rest of your days in front of the TV watching Netflix.
£2m and I take an easier job, part time.
£3m and I quit work for financial gain. I would consider some sort of voluntary activity.
It's not just how much money you need to survive, it's how much money you need to keep you occupied. You can't spend the rest of your days in front of the TV watching Netflix.
Broadly speaking, unless you're an old-timer you'll need 30 times your anticipated income.
So if you want £20,000 a year you'll need £600,000
That £20k represents 3.3% p.a.
But you'll need your £600k invested somewhere that gives an investment return around 7% p.a. or you'll get eaten alive by inflation. Unfortunately bank deposits currently pay a pitiful 0.1% And then there's the question of investment risk in the stock market. So you'll actually need significantly more than £600k to feel confident about your £20k p.a. income.
So if you want £20,000 a year you'll need £600,000
That £20k represents 3.3% p.a.
But you'll need your £600k invested somewhere that gives an investment return around 7% p.a. or you'll get eaten alive by inflation. Unfortunately bank deposits currently pay a pitiful 0.1% And then there's the question of investment risk in the stock market. So you'll actually need significantly more than £600k to feel confident about your £20k p.a. income.
Carlton Banks said:
Was chatting this through with a few friends who do alright for themselves and one is about to sell his shares in a business.
Most of us agreed that if you had your house paid off and a sizeable cash sum in the bank (£500k?) you could give up your day job.
Said friend will be £1m better off after selling his shares.
What are your thoughts?
If you're super old, maybe.Most of us agreed that if you had your house paid off and a sizeable cash sum in the bank (£500k?) you could give up your day job.
Said friend will be £1m better off after selling his shares.
What are your thoughts?
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