Income brackets: PERCEPTIONS of low and high?

Halle71

Tancred wrote: »

A million would not be enough? It would for me. I could pay off my mortgage, extend my house and have enough to invest, giving me around £40-50k a year for life index linked. I could live on that fairly comfortably. I would probably need at least £2M to give up work immediately, though. With £1M I would probably work until 55 and then give it up.

Why is £5M not enough? Assuming you spend £1M it would still leave you with £4M to invest, which would easily generate £200k a year if you use it to invest in an income producing unit trust or rental property.

In the area we would want to live (SW London) modest 3/4 bed terraces are circa £1M so there would be nothing left for bills. Or yachts :rotfl: We may also move to NZ where my partner is from so no NHS etc and even visiting NZ costs us £4.5k each year now we are restricted to school hols.

I guess the £5M thing is because, once I am out of my job for a few years, my skills would be null and void so there would be no chance of going back to work. If we ever need to help kids out, need private healthcare or schooling it just seems limiting. Of course I will never earn that in my lifetime so you're right, but it's my perception of £5M FOREVER

Tancred

mayonnaise wrote: »

I'd rather go to work than holiday in Skegness or Bognor.

So would I, but that's not the point. Many people used to go to these places and stay in a Butlin's camp etc. I don't go to these places but I'm pretty modest in my choices - this year I'll be renting a cottage near Oban and enjoy some peace and calm, away from the overcrowded loony bin that is the south-east of England. I've been to all the 'must see' places on the continent - done it, bought the T shirt, the little mug, glass globe, whatever. I don't feel obliged to go there again.

Tancred

Prothet_of_Doom wrote: »

As a well qualified Chartered Engineer, I would say that it's almost impossible to hit £40K as a permanent Employee, in a highly technical job in the North West without taking on managerial responsibilites. This is why I am self employed (ltd company) and Freelancing contracting in the East Midlands, and travelling back home at weekends.

I know hardly anyone personally who earns more than £35K in the Northwest. But I know a few couples who jointly manage to hit £65K, and I know plenty of families who are jointly on less than £25K.

The main difference I see between these 2 is that one lot spends on pointless luxuries, and are brand junkies, and the other lot have to think more carefully.
Also the higher earning couple and families, seem to have alot more debt, so that when one half was made redundant it was a really big problem.

In terms of tax and income, I believe and have done ever since my wife choose to be a stay at home mum, that whatever the tax rates, the partner of a parent of a child under 10, should be able to utilise the full tax of their partner. Effectively Married couples should be able to declare a joint tax return. (when i say married, I would include those who struggle with that commitment, but who would be able to commit to the HMRC for 1 year at a time)

I think £50K should be the 40% band, and £100K take you to 41% and every 10K take you up 1% to 50% at £150K, so yes earning an extra 10K above 150K would result in about £3K in your pocket after tax and NI. But you could avoid any tax by putting the whole lot in your pension. :rotfl:

Thanks for a sensible post! At last.

I agree with non working partners being able to transfer their allowance to their partners - that is what is done on the continent. The problem is that the Con-Dem lot are doing their best to discourage family life and force people to work and spend unnecessary huge amounts on childcare. Lunacy.

lostinrates

Tancred wrote: »

A million would not be enough? It would for me. I could pay off my mortgage, extend my house and have enough to invest, giving me around £40-50k a year for life index linked. I could live on that fairly comfortably. I would probably need at least £2M to give up work immediately, though. With £1M I would probably work until 55 and then give it up.

Why is £5M not enough? Assuming you spend £1M it would still leave you with £4M to invest, which would easily generate £200k a year if you use it to invest in an income producing unit trust or rental property.

I think for some people giving up work is more life changing than paying off mortgage.

I also think life changing implies being able to do things that one cannot do, or for see doing otherwise. So giving up work but maintaining the income to make the choices financial one might have if stayed in work and had career progression but also the time one sacrifices might be a modest but satisfactory life change, for example.

michaels

Tancred wrote: »

Thanks for a sensible post! At last.

I agree with non working partners being able to transfer their allowance to their partners - that is what is done on the continent. The problem is that the Con-Dem lot are doing their best to discourage family life and force people to work and spend unnecessary huge amounts on childcare. Lunacy.

I thought it was a manifesto commitment of the Cons part but that the Dems bit were very against?

We are a family of 5, I think no mortgage plus capital to give an income of 25k pa increasing with rpi would be enough to live on and not work again unless I wanted to do. DW would probably have other ideas....

lostinrates

Tancred wrote: »

Utter nonsense. :rotfl:

I would ask that we are courteous to each other. I've asked peoe to
Do something not in every bodies comfort zone and I'm keen that they are able to express themselves without ridicule.

Challenging is welcome, and exploration of why we have formed the perceptions we have, but I would ask that ridicule is kept out of 'my' thread.

Hamish mctavish particularly made a plea recently that some of us participate more, and I am trying to respond to that, but while I welcome vociferous and robust debate I would appreciate if people are not ridiculed, particularly on a thread I have started,

I appreciate cooperation from all posters in this regard.

al25

Tancred wrote: »

£80k or £4,500 a month after tax should be very plentiful for a single income and still perfectly comfortable for a couple. Lifestyle is a choice - you don't have to buy a new car every couple of years or join the golf club. Anyone earning over £1M is a lot more than just 'comfortable'!!

OP was asking individual opinions, I gave mine, and I respect yours, but don't try to bulldoze your opinion.
Maybe 80k is "Plentiful" for some, but not others.

Tancred

al25 wrote: »

OP was asking individual opinions, I gave mine, and I respect yours, but don't try to bulldoze your opinion.
Maybe 80k is "Plentiful" for some, but not others.

I am not bulldozing anything, but something appears to be ridiculous I will point it out. And I also don't accept that a given figure is different for some people rather than others - we are all humans and have the same needs. When it comes to 'wants' that is something else!

lostinrates

Prothet_of_Doom wrote: »

As a well qualified Chartered Engineer, I would say that it's almost impossible to hit £40K as a permanent Employee, in a highly technical job in the North West without taking on managerial responsibilites. This is why I am self employed (ltd company) and Freelancing contracting in the East Midlands, and travelling back home at weekends.

I know hardly anyone personally who earns more than £35K in the Northwest. But I know a few couples who jointly manage to hit £65K, and I know plenty of families who are jointly on less than £25K.

The main difference I see between these 2 is that one lot spends on pointless luxuries, and are brand junkies, and the other lot have to think more carefully.
Also the higher earning couple and families, seem to have alot more debt, so that when one half was made redundant it was a really big problem.

In terms of tax and income, I believe and have done ever since my wife choose to be a stay at home mum, that whatever the tax rates, the partner of a parent of a child under 10, should be able to utilise the full tax of their partner. Effectively Married couples should be able to declare a joint tax return. (when i say married, I would include those who struggle with that commitment, but who would be able to commit to the HMRC for 1 year at a time)

I think £50K should be the 40% band, and £100K take you to 41% and every 10K take you up 1% to 50% at £150K, so yes earning an extra 10K above 150K would result in about £3K in your pocket after tax and NI. But you could avoid any tax by putting the whole lot in your pension. :rotfl:

Are there houses being sold that suggest personal incomes above these limits? Any business owners for example living ion the nw of England? any leading public sector jobs?
Successful large farms ?


It seems to me impossible that a whole region of England is 'low paid'while totally plausible that we all experience a lot of confirmation bias ) which brings it back to a perception of pay and wealth.

Is there any way realistically for people, not individuals interested in this, but a majority of people, to make informed judgments LESS coloured by perception, (and I think this touches ALL of us) ? Can there ever be a summation of situation not impacted by our perception? I cannot quite imagine how that would work?

lostinrates

al25 wrote: »

OP was asking individual opinions, I gave mine, and I respect yours,.

Thank you al. Your opinion IS appreciated.