What would you do?

Samtheman1k said:
LOL...that wouldn't even get you a 2 bed flat round my way!

:eek:
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True, but there are places where it will get you a very rentable property, and could (with a bit of capital growth) provide the leverage for the next one, too.

Of course, that relies on a stable or booming economy, and property price rises which, while they are rising at the moment, is still a speculative move.
 
Sequoia said:
£1.3 million is certainly enough to make a huge difference to these two, but it is not enough to live a jetset lifestyle for the rest of their lives. Buying a decent property, and generating a reasonable monthly income, yes. But by the time you've bought a nice house, and invested the rest (accepting that the first 2% or 3% of the income needs to be reinvested to stop the capital losing ground in real terms), it's not really enough to sit back on your laurels for the rest of your lives.
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I herd a program on the radio discussing about this (sometime last year) and they said that £2m was like the bare minimum before you could quit your job, I guess then you just have to sit at home doing absolutly nothing.

I'll probably just carry on working knowing that I would be financally sound.
 
1.3m probably wouldn't be enough for both me and vix to both give up work immediately at our age so it'd probably be a case of get a house and treat ourselves to a few nice things but carry on working for a bit longer and put the rest into safe investments whilst looking forward to an early retirement.
 
Sequoia said:
I would advise anyone winning a substantial sum of money to think hard before making too many lifestyle changes.

£1.3 million is certainly enough to make a huge difference to these two, but it is not enough to live a jetset lifestyle for the rest of their lives. Buying a decent property, and generating a reasonable monthly income, yes. But by the time you've bought a nice house, and invested the rest (accepting that the first 2% or 3% of the income needs to be reinvested to stop the capital losing ground in real terms), it's not really enough to sit back on your laurels for the rest of your lives.

Personally, I would not want to work in McD's in the first place, so I certainly wouldn't want to go back. But to those who say they want to run their own business, or to invest in property, take it from some that has done both, it is not easy. Either road can lead to a honking great loss, if you aren't careful. Not everybody is emotionally or intellectually suited to running a business, and a fair percentage of businesses go broke, because the people running them aren't suited to it. The same goves for property, and especially for property abroad. Sure, it can be very lucrative, but it is also a minefield, and buying property where you know neither local laws, nor customs, is ten times the minefield.

If you're lucky enough to win a sum of money that can provide security and a bread-butter income for life, think twice before indulging in speculative ventures that, whilst they might make you another fortune, could also lose you the one you already have, and leave you no choice but to go back to working in McDonalds.
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As much as you speak sense, as ever Seq, you ain't half good at popping fantasy bubbles. ;)
 
1.3 is not nearly enought to retire on.
I could easily blow 1 mill on a nice Aston and a good house in the nicer suburbs of south London.
I think I'd be inclined to put most of the rest into rental property, maybe buying some places overseas. So I'd probably end up still living on my existing (not completely rubbish salary), but without having to pay any mortgage.
 
Mr_Sukebe said:
I think I'd be inclined to put most of the rest into rental property, maybe buying some places overseas. So I'd probably end up still living on my existing (not completely rubbish salary), but without having to pay any mortgage.
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a mill should be enough to get a pretty decent property portfolio for rental, but by all accounts the return on investment isn't all that great.... but you do allways have something very solid for your money, which is more than likely to increase in value over time....
 
I'd just keep it for fun and keep my life as normal, that way if I need money I can pull a bit out, or spoil people on birthdays etc. Have it for fun, not to live off. :)
 
Overload said:
I herd a program on the radio discussing about this (sometime last year) and they said that £2m was like the bare minimum before you could quit your job, I guess then you just have to sit at home doing absolutly nothing.

I'll probably just carry on working knowing that I would be financally sound.
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I'd never sat down and thought out a figure for it. Obviously, a lot would depend on the lifestyle that you sought to become accustomed to. Strange though it may seem, to a lot of people, £1.3m is small change. People might be surprised how many people that would be the case for. It might be a small percentage of the population, but it's a large number of people.

At least part of the problem comes from the fact that going from a hand-to-mouth existance (as most people have), to having serious capital behind you, leads to the situation where you now can afford things that were really nothing more than a dream before. Once you buy a nice house, and the new Jag/Merc/Aston/whatever, and find out that you can afford five star hotels, good restaurants, fancy clothes, first class flights, etc, you start to get accustomed to them. So, the danger is you splurge initially, then find you like that lifestyle, and keep on doing it. £1.3 million is not enough to maintain that lifestyle. You'll eat into capital, and sooner or later, it'll run out. It might (probably will) take a few years, but it'll happen. Then it's back to drudgery.

And a part of the problem is having too much time on your hands, if you give up work altogether.

On the other hand, £1.3 million is enough to guarantee a level of comfort and financial security for life, if used sensibly.

I guess if people want to life a millionaire lifestyle while it lasts, then that's their choice. Me ... I'd rather have comfort and security for life than champagne and caviar for a while, then have to go back to McD's .... AFTER having tasted the champagne lifestyle.

We still think of a millionaire as being filthy rich. It ain't so anymore. A millionaire 50 years ago, and a millionaire now, are different degrees of wealth. VERY different. Living the millionaire lifestyle on £1.3m is one thing. Maintaining that lifestyle is another.

Von Smallhausen said:
As much as you speak sense, as ever Seq, you ain't half good at popping fantasy bubbles. ;)
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Sorry about that, Von. :D
 
Spunj99 said:
I hope he treats her to some plastic surgery at least. :(
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:rolleyes:

Anyway, back on topic...

No, it wouldn't change me. I'd take a nice holiday, maybe get a nicer house and a bigger car (Ford Fiesta at the moment!) and then just invest the rest and allot myself more spending money in my budget. I'd keep going to work, but I might not stress as much about it.
 
I would stop talking about abortion, pay privately to get my operation rather than my parents talking about remortgaging their house to do it and accept the offer of the position with the fire brigade in september.
 
1.3m isn't a massive amount? Assuming you live another 60 years thats over 20k a year - tax free. Add to that you won't be burdened by interest, what you pay for your house will be the askuing price, not the asking price plus the same again in interest over 25 years.

Plus you'll have some return from the capital - even if it's just 5-10% from bonds and such like.

No you wouldn't be able to live a jetset lifestyle, but by freeing yourself from the need to earn you can pursue hobbies and take up volunteer work that makes you feel good about yourself.

The idea of dishing it all out on a posh house and flash car and having nothing left turns my stomach.
 
Telescopi said:
1.3m isn't a massive amount? Assuming you live another 60 years thats over 20k a year - tax free. Add to that you won't be burdened by interest, what you pay for your house will be the askuing price, not the asking price plus the same again in interest over 25 years.

Plus you'll have some return from the capital - even if it's just 5-10% from bonds and such like.

No you wouldn't be able to live a jetset lifestyle, but by freeing yourself from the need to earn you can pursue hobbies and take up volunteer work that makes you feel good about yourself.

The idea of dishing it all out on a posh house and flash car and having nothing left turns my stomach.
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20k a year is less then our household income and we can't afford to get less than we do now. On top of that I would expect my leisure expenditure increase significantly if I wasn't spending 9 hours a day at work. On that basis whilst 1.3m would certainly improve my lifestyle I'd still need to earn.
 
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