In 18 years the top 1% won't stay at £693k for you to catch up to it. Their values are already increasing by that same 5% for 18 years. At that point you'd need at least £1.6m to be in the top 1%.
The salary question?
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In 18 years the top 1% won't stay at £693k for you to catch up to it. Their values are already increasing by that same 5% for 18 years. At that point you'd need at least £1.6m to be in the top 1%.
Not necessarily, lots of these people will be old - some of them could be retired and might be depleting some of that wealth at the moment, some of it could be stagnating at below 5% in safer investments more suitable for someone who no longer has an income. A large chunk of it might be required to cover nursing home fees or the cost of carers and in 18 years time the remainder might have been split two ways and given to kids of the then deceased wealthy person.
In Vietnam the saying goes 'I have big Dong'.
That's "wealth" . Earnings is as follows:
To be in the top 1% of income tax payers in the UK (i.e. to be among the 310,000 individuals with the highest income), a taxable income of at least £160,000 is required. £236,000 is required to be in the top 0.5% and nearly £650,000 to be in the top 0.1%
The top 1% of income tax payers are not a stable group – a quarter of those in the top 1% in one year will not be there the next. After five years, only half will still be in the top 1%.
As a result, someone has a much higher chance of being in the top 1% at some point in their lives than they do in any given year. 3.4% of all people (and 5.5% of men) born in 1963 were in the top 1% of income tax payers at some point between 2000–01 and 2015–16.
Interestly enough I came across this as to why people who earn hundreds of thousands of pounds each year dont actually feel "rich"
Problem is those in the top 1% don't "feel" wealthy as they compare themselves tom the top 0.1% who have hundreds of millions.
But I agree, its very very achievable to get yourself into the top 1% wealthiest people in the UK. Breaking the top 0.1% is hard.
"Rich" to me would mean being able to live comfortably (subjective, I know) on assets alone. So, they're not dependent on working for anyone else, or even "working" at all in the conventional sense. Portfolio of shares/properties/other assets that generate enough income to allow a properly comfortable lifestyle to be maintained.
We'll all disagree over what the income level needed would be, but if we worked with the 5% yield previously and said £250k/year income, that'd need £5m of assets, not including your primary residence as you can't really make money from something you're living in. You're right in that this would put you above the 1% threshold.
We'll all disagree over what the income level needed would be, but if we worked with the 5% yield previously and said £250k/year income, that'd need £5m of assets, not including your primary residence as you can't really make money from something you're living in. You're right in that this would put you above the 1% threshold.
That reminds me of that £1 scenario:
If you got £1 every 10 seconds, you’d be a millionaire within 4 months.
If you got £1 every 10 seconds, you’d have to wait 310 years before you hit your first billion.
Problem is then, if you ask the people in that position, they tell you they don't feel "rich" as they are moving in the circles of people who have hundreds of millions of assets. It was the same with my old boss. He use to "earn" £300k+ every year, he owned the company and that used to make around a million profit every year and was worth around £10m, 10 years ago and with his "country house" and rental properties and fast cars he probably personally owned around £3-£4m of assets but he never felt rich and still wanted more.
That says more about his state of mind than anything else. You can want more at any level, even with hundreds of millions.
But he had more than enough "wealth" to pack in work and fulfill your definition of being "rich" but he didnt feel rich. To him being "rich" was having hundreds of millions and a yacht.
To 99% of the rest of the population, they see him as already being rich
Soldato
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With work colleagues it can be comfortably openly discussed; a good amount of us are on the same salaries, our company salary bands are easily available if anyone really wants to know..
Within my group of friends at home I don't ask anyone else and I wouldn't really expect them to ask me, unless it was for the purposes of actually being advice. Of the group of us from our jobs I think I'd be on the most, but I'd keep that to myself
Within my group of friends at home I don't ask anyone else and I wouldn't really expect them to ask me, unless it was for the purposes of actually being advice. Of the group of us from our jobs I think I'd be on the most, but I'd keep that to myself
Soldato
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Thought it may be by the way you mentioned salaried/private work.
And this is the crux of the problem. Nobody ever feels rich when comparing themselves to people who are in less fortunate position. They'll describe them selves as more fortunate, well off, comfortable etc. Yet when we're looking at people above us they're rich. Its human nature to always want more, compare ourselves to people better off I suspect.
Richness will be subjective, for me, due my humble beginnings, I would say I was rich if I never cared about the price of something I bought.
This does not mean that I will be buying Bentleys and getting groceries from Harrods, but I wouldn't care about the cost of say my shopping at M&S, I would just grab whatever I wanted.
This does not mean that I will be buying Bentleys and getting groceries from Harrods, but I wouldn't care about the cost of say my shopping at M&S, I would just grab whatever I wanted.
Associate
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She's just turned green with envy. I keep telling her to O/D the methadone lot and make her job easier
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Best wishes to her in her search for a better role. I've no doubt she will find a new role that is more enjoyable. Perhaps a CCG Medicines Management role or a General Practice Pharmacist role in one of the Primary Care Networks.
This pretty much.
Caporegime
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Pretty much this.
Only materialistic people tend to talk about how much they or other people earn.
It's not a question you should ever ask anyone unless you are gold digger or a clinger on.
I've discussed it with my wife but that's it. Even my son I haven't told, because he is young and might go around telling people at school or whatever. My dad I would potentially tell if I had a reason to but he's not the sort of person who would ask. I never found out what he earned before retiring except he mentioned shortly before retirement he'd just moved into the 40% tax bracket. I was surprised because given his level of responsibility I'd assumed he would have been earning that much for years. I guess that's the issue with public sector vocational roles, good job satisfaction and pension but salary would I imagine be 25-50% higher in an equivalent private sector role.
With friends I've never put a number on it but when drunk I did once let on how much pay rise I had got for taking a job in London (to justify why I was giving up a job just over a mile from my house for a 4.5hr daily commute)
With friends I've never put a number on it but when drunk I did once let on how much pay rise I had got for taking a job in London (to justify why I was giving up a job just over a mile from my house for a 4.5hr daily commute)
Interesting way of looking at it - part of the problem is that in a digital world wealth is just a simple number. I am moderately well off by most people's standards but whether you have £1k or £10k or £100k in the bank it doesn't really sink in in terms of day-to-day life.
Imagine a situation where to represent a billion, you had to write million a thousand times (a bit like roman numerals sort of approach). Then the difference, the unattainability of being a billionaire would really sink in, rather than just being the next rung on the ladder for millionaires.
Same with my parents - I was surprised to find out how much my dad had put away towards moving to somewhere nicer to retire, etc. though I had a reasonable idea as to his income as there was a press article once on the salaries (focussing on bonuses) at the top of his company.
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