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Post by brianac on Jun 17, 2016 18:10:00 GMT
I'm about to cross into my 70s, and about 20 years ago I thought I'd be a miilionaire... who remembers the HYIP schemes around then, seeing your money double every few weeks. Inevitably they were pyramids and eventually crashed and burned, leaving a few people rich, who played the game and got out at the right time, but most very much the loser. I googled HYIP schemes (cos I didn't know what it was 3rd link that came up was a certain E London cemetery. (http://www.harleyinvestments.com/Rainham7.asp) :-0 Brian
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Post by whatif on Jun 17, 2016 18:16:44 GMT
I'm about to cross into my 70s, and about 20 years ago I thought I'd be a miilionaire... who remembers the HYIP schemes around then, seeing your money double every few weeks. Inevitably they were pyramids and eventually crashed and burned, leaving a few people rich, who played the game and got out at the right time, but most very much the loser. I googled HYIP schemes (cos I didn't know what it was 3rd link that came up was a certain E London cemetery. (http://www.harleyinvestments.com/Rainham7.asp) :-0 Brian Nope... en.wikipedia.org/wiki/High-yield_investment_program
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andyb
Posts: 69
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Post by andyb on Jun 17, 2016 18:31:04 GMT
I'd be looking to pay that mortgage down as quickly as possible. What interest rate are you paying (out of taxed income) on that borrowed money, compared to the interest rate you're receiving (with tax deducted) on your investments? Also, if you have a lower mortgage debt, you have more flexibility during times of lower income and you have better choices for negotiating a lower rate when you remortgage, with a lower LTV. I wouldn't ref the mortgage as rates are low and you can make more elsewhere (my opinion anyway). You should maximise pension savings for the tax relief. You could start a SIPP that allows investment in P2P for example. I'm only paying at a rate of 2.1 on a tracker so while rates are so low I may as well be investing hadn't I ?
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Post by brianac on Jun 17, 2016 18:40:22 GMT
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Liz
Member of DD Central
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Post by Liz on Jun 17, 2016 18:51:09 GMT
Yes i'm earning £5K a week, not funding my prefunded loans
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cooling_dude
Bye Bye's for the PPI
Posts: 2,853
Likes: 4,298
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Post by cooling_dude on Jun 17, 2016 23:27:06 GMT
... earning mega interest is hard to define. Living off the interest? It's certainly my aim, or close to it. I'm the sort of person that wants to be active but not stretched. Eventually, I want to have enough to enjoy life. That doesn't mean give up working; because I enjoy what I do. However, I would like to reduce my workload. Let's put some actual numbers towards "Living off the interest"... To achieve the average UK yearly salary (£26,500) you would require (non-cumulative)... 12% Anual Return | - | £221,000 | 10% Anual Return | - | £265,000 | 8% Anual Return | - | £330,000 | 6% Anual Return | - | £442,000 | 4% Anual Return | - | £662,500 |
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Post by earthbound on Jun 17, 2016 23:37:38 GMT
... earning mega interest is hard to define. Living off the interest? It's certainly my aim, or close to it. I'm the sort of person that wants to be active but not stretched. Eventually, I want to have enough to enjoy life. That doesn't mean give up working; because I enjoy what I do. However, I would like to reduce my workload. Let's put some actual numbers towards "Living off the interest"... To achieve the average UK yearly salary (£26,500) you would require (non-cumulative)... 12% Anual Return | - | £221,000 | 10% Anual Return | - | £265,000 | 8% Anual Return | - | £330,000 | 6% Anual Return | - | £442,000 | 4% Anual Return | - | £662,500 |
And save as hard as possible because... "That doesn't mean give up working; because I enjoy what I do" You might not when your pushing 60. believe me..
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cooling_dude
Bye Bye's for the PPI
Posts: 2,853
Likes: 4,298
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Post by cooling_dude on Jun 18, 2016 0:14:33 GMT
... earning mega interest is hard to define. Living off the interest? It's certainly my aim, or close to it. I'm the sort of person that wants to be active but not stretched. Eventually, I want to have enough to enjoy life. That doesn't mean give up working; because I enjoy what I do. However, I would like to reduce my workload. Let's put some actual numbers towards "Living off the interest"... To achieve the average UK yearly salary (£26,500) you would require (non-cumulative)... 12% Anual Return | - | £221,000 | 10% Anual Return | - | £265,000 | 8% Anual Return | - | £330,000 | 6% Anual Return | - | £442,000 | 4% Anual Return | - | £662,500 |
And save as hard as possible because... "That doesn't mean give up working; because I enjoy what I do" You might not when your pushing 60. believe me.. Maybe... Luckily I'm not pushing 60... or 50... or indeed some other decades . Truth is, I want to be comfortable (financially speaking) long before my 60s; but not only because I want to enjoy life, but also because I want to enjoy my work. Why my work? Because if you enjoy your work, that's what I believe keeps you mentally healthy into old age... My old man is my inspiration. He is 75; he still works... not because he has to (he doesn't) but because he enjoys what he does. As such he is physically healthier, and (perhaps more importantly) mentally healthy than most 70-year-olds I know.
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Post by earthbound on Jun 18, 2016 0:15:09 GMT
I'll be living in LOS myself at the end of October. Can live well for a lot less than the UK. A good few Baht cheaper. But dont tell everyone . dodgeydave .. just got back from the hell hole (phucket) baht fart... full of English nier do wells with questionable morals.. I might pop back in the near future.. NOT..
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Post by earthbound on Jun 18, 2016 0:22:03 GMT
And save as hard as possible because... "That doesn't mean give up working; because I enjoy what I do" You might not when your pushing 60. believe me.. Maybe... Luckily I'm not pushing 60... or 50... or indeed some other decades . Truth is, I want to be comfortable (financially speaking) long before my 60s; but not only because I want to enjoy life, but also because I want to enjoy my work. Why my work? Because if you enjoy your work, that's what I believe keeps you mentally healthy into old age... My old man is my inspiration. He is 75; he still works... not because he has to (he doesn't) but because he enjoys what he does. As such he is physically healthier, and (perhaps more importantly) mentally healthy than most 70-year-olds I know. could not agree more... i sort of retired at xmas.. i'm bored stiff.. i'm top of your list ie 12%.., don't need to work, 6 months in. i need a job, but not my trade, something totally different, i want a simple 2 days a week job.. but god knows what... i spend too much time on this forum 'filling in my time'.. along with lots and lots of others. edit typos
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Post by ladywhitenap on Jun 18, 2016 9:00:00 GMT
It depends what country you live in. I'll be living in LOS myself at the end of October. Can live well for a lot less than the UK. I've been racking my old brain to try and work out where/what LOS is. Google has not helped me. Please can someone put me out of my misery? TIA LW
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cooling_dude
Bye Bye's for the PPI
Posts: 2,853
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Post by cooling_dude on Jun 18, 2016 9:02:18 GMT
I'll be living in LOS myself at the end of October. Can live well for a lot less than the UK. I've been racking my old brain to try and work out where/what LOS is. Google has not helped me. Please can someone put me out of my misery? TIA LW LOS = Land of Smiles. It's in reference to Thailand because they smile a lot... apparently
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Post by brokenbiscuits on Jun 18, 2016 9:03:33 GMT
... earning mega interest is hard to define. Living off the interest? It's certainly my aim, or close to it. I'm the sort of person that wants to be active but not stretched. Eventually, I want to have enough to enjoy life. That doesn't mean give up working; because I enjoy what I do. However, I would like to reduce my workload. Let's put some actual numbers towards "Living off the interest"... To achieve the average UK yearly salary (£26,500) you would require (non-cumulative)... 12% Anual Return | - | £221,000 | 10% Anual Return | - | £265,000 | 8% Anual Return | - | £330,000 | 6% Anual Return | - | £442,000 | 4% Anual Return | - | £662,500 |
It's slightly more complex than that as, for one thing,inflation will need to play a part in your calculations. Especially for those looking for retirement decades ahead of the norm. Imagine retiring at 45, running out of cash in your 60s and then heading back to work in your twilight years. No fun if your maths or expectations were off. I've run some calculations (not based on all, or even a lot of my money earning 12%) and it's come up with 52 as an age I may be able to live off investments. This is all very fine and well but it's based on my income and habits now. It's not set in stone, just a best guess on what I know now. There is no way of knowing how promotions may present themselves or if cash windfalls or inheritance may fall nicely for me, to accelerate the plan or even if divorce, sickness, redundancy, robot overlords reducing work availability, zombie apocalypse, children etc may add years to the date. I would say anyone with a 25 year plan that involves getting 12% a year continuously needs to rethink that plan, even more so if inflation has not been considered. I would think your savings rate is probably the most powerful accumulator of wealth you have available to you. It's definitely the thing you have the most control over. Personally I aim for 30% of post tax minimum as a savings goal. 12% is fantastic when the sun is shining but 12% certainly does not come without risks. My method is Spread the risk, keep to a high percentage savings plan and just keep on keeping on whatever gets thrown at you.
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Jeepers
Member of DD Central
Posts: 818
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Post by Jeepers on Jun 18, 2016 9:03:44 GMT
... earning mega interest is hard to define. Living off the interest? It's certainly my aim, or close to it. I'm the sort of person that wants to be active but not stretched. Eventually, I want to have enough to enjoy life. That doesn't mean give up working; because I enjoy what I do. However, I would like to reduce my workload. Let's put some actual numbers towards "Living off the interest"... To achieve the average UK yearly salary (£26,500) you would require (non-cumulative)... 12% Anual Return | - | £221,000 | 10% Anual Return | - | £265,000 | 8% Anual Return | - | £330,000 | 6% Anual Return | - | £442,000 | 4% Anual Return | - | £662,500 |
£26500 from employment after tax and NI would mean taking home £21,187. If you only had P2P as an income then you wouldn't have NI to deduct and you could earn upto £17k PA tax free with the various allowances. So you'd need about 170k @12% to give the income of an equivalent £26500 salary after deductions. Don't give up the day job and put everything into P2P, you could become broke overnight with no income.
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cooling_dude
Bye Bye's for the PPI
Posts: 2,853
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Post by cooling_dude on Jun 18, 2016 9:11:07 GMT
... earning mega interest is hard to define. Living off the interest? It's certainly my aim, or close to it. I'm the sort of person that wants to be active but not stretched. Eventually, I want to have enough to enjoy life. That doesn't mean give up working; because I enjoy what I do. However, I would like to reduce my workload. Let's put some actual numbers towards "Living off the interest"... To achieve the average UK yearly salary (£26,500) you would require (non-cumulative)... 12% Anual Return | - | £221,000 | 10% Anual Return | - | £265,000 | 8% Anual Return | - | £330,000 | 6% Anual Return | - | £442,000 | 4% Anual Return | - | £662,500 |
£26500 from employment after tax and NI would mean taking home £21,187. If you only had P2P as an income then you wouldn't have NI to deduct and you could earn upto £17k PA tax free with the various allowances. So you'd need about 160k-170k to give the income of an equivalent £26500 salary after deductions. It was only a quickly drawn up table . However, you are right that there are tax perks that savers have, which employment doesn't have. It's also worth pointing out that with the new IF-ISA the entire pot will be tax-free.
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