How do you make some serious money, become wealthy?

[fandango_c]

z4chris99 said:

fandango_c said:

That's a very, very, very large amount of projected income of what seems to be a relatively small amount of current assets. I suspect someone's sums may not be correct...

no sounds fine to me, but he's projected the principle growth at current rates

No, still sounds far to high to me, even if a very optimistic 10% pa has been used.

[z4chris99]

take his principle at now 800k and compound 10% pa over the next 70 years.

your at about 850million

[fandango_c]

z4chris99 said:

take his principle at now 800k and compound 10% pa over the next 70 years.

your at about 850million

Which is nowhere near 17m, hence your sums are wrong too.

[rugbybloke]

KFC said:

I had a business that turned over £47m and I thought I was on track for the big exit also. Turned out my business model of selling £10 notes for £9 wasn't a great one and it all died on me.

Obviously the above is not true... just pointing out that mentioning turnover on its own is utterly worthless. Anyone can turn over millions, work like a dog but not actually see any profit from it. How much did you actually make on that £4.7m?

Apologies for the overly simplistic illustration I used to highlight growth. Of course the true measure of any business is its profits. You don't have to be a rocket scientist to figure that one out.

Our net profits are currently around 7-8% of that turnover figure.

[z4chris99]

fandango_c said:

Which is nowhere near 17m, hence your sums are wrong too.

he said the principle doesn't get touched, but his disbursement will be 17m

without knowing his assumptions, fees, rates etc impossible to know exact figures but if you put 800k into a mutual trust now and in 70 years of not touching it you'll be fking minted

[z4chris99]

for example, the national fund. 500k invested, 85 years later is £350m

[V8A*ndy]

z4chris99 said:

for example, the national fund. 500k invested, 85 years later is £350m

How much was 500k 85 years ago in comparison to todays money?

[Perec]

V8A*ndy said:

z4chris99 said:

for example, the national fund. 500k invested, 85 years later is £350m

How much was 500k 85 years ago in comparison to todays money?

About £27m

[V8A*ndy]

Perec said:

V8A*ndy said:

z4chris99 said:

for example, the national fund. 500k invested, 85 years later is £350m

How much was 500k 85 years ago in comparison to todays money?

About £27m

Doesn't seem a lot of return in real terms for 85 years.

[TheLordJohn]

V8A*ndy said:

Doesn't seem a lot of return in real terms for 85 years.

Well if my great grandad had started that and I was running it now, I'd be over the moon.
You must have some amazing investments to laugh at that example.

[fandango_c]

z4chris99 said:

fandango_c said:

Which is nowhere near 17m, hence your sums are wrong too.

he said the principle doesn't get touched, but his disbursement will be 17m

without knowing his assumptions, fees, rates etc impossible to know exact figures but if you put 800k into a mutual trust now and in 70 years of not touching it you'll be fking minted

No, he said the principle does not get diminished by disbursements.

[V8A*ndy]

TheLordJohn said:

V8A*ndy said:

Doesn't seem a lot of return in real terms for 85 years.

Well if my great grandad had started that and I was running it now, I'd be over the moon.
You must have some amazing investments to laugh at that example.

I'm not laughing just stating that you really have to be in for the long haul in the markets. There really isn't a quick buck to be made like some seem to think.

[Siscar]

TheLordJohn said:

V8A*ndy said:

Doesn't seem a lot of return in real terms for 85 years.

Well if my great grandad had started that and I was running it now, I'd be over the moon.
You must have some amazing investments to laugh at that example.

A slight snag is that he says

"So I used money that I never really missed as it was deducted pre-tax from my paycheck back in the crazy 2000s"

Which is nothing like far enough ago for it to be doing what he is saying it is doing.

In principle though, investing long term does bring some great rewards, I have one investment that started in the 80's at around £2,000 and is now worth £26,000, but it's not what you would call 'getting rich quick' nor is there much point if at some stage you don't use the money for something.