Enough money to retire at 26?

captainhindsight_2

berbastrike wrote: »

Captain, to have kids, first need a girlfriend, chances of that are slim.

e.

Lol. :rotfl:

Goldiegirl

berbastrike wrote: »

Captain, to have kids, first need a girlfriend, chances of that are slim.

Goldiegirl, I posted a graph earlier which showed in the last 25 years, the saving rate was always higher than inflation rate.

But past performance isn't a guarantee of future performance. All those people who bought endowment policies in the 1980's will confirm that!

If you are serious about this, get yourself over to the retirement planning board, for advice from people who know a lot about investing for the future

Armorica

berbastrike wrote: »

Captain, to have kids, first need a girlfriend, chances of that are slim.

Goldiegirl, I posted a graph earlier which showed in the last 25 years, the saving rate was always higher than inflation rate.

I addressed that earlier - you ignored my post.

The graph conveniently missed out the last four years (which have been difficult financially).

And historic performance is not a guarantee of future performance.

System

Goldiegirl, inflation would very rarely be higher than interest rates.

sproggi

berbastrike wrote: »

It doesn't work like that, but I know what you are trying to say.

The inflation on the amount in the bank will decrease too.

Let's put it this way:

Year 1
£300000 in the bank at 1.85% interest pays £5550

Assuming you have no need to touch the £5550 and you only
need to withdraw £7500, you would then have £298050 (£300000+£5550-£7500) that interest would be payable to you on, so:

Year 2
£298050 in the bank at 1.85% interest pays £5513.19

Year 3
£294041.10 @1.85% pays £5477.18

etc.,etc.

Whilst this might look good in theory, your interest would gradually decrease but your cost of living would go up each year at a faster pace than the rates of interest, so you would, at some point, need to withdraw more than the planned £7500, thereby reducing the interest at an even faster rate.
You also have to take into account any emergencies that may deplete the money further.

Just something else to consider.

redcard

It must be nice to go through life completely deluded

peachyprice

Goldiegirl wrote: »

If you are serious about this, get yourself over to the retirement planning board, for advice from people who know a lot about investing for the future

Oh for goodness sake, he's not serious about it, his whole 'life' is a pack of lies.

System

redcard wrote: »

It must be nice to go through life completely deluded

What's deluded?

redcard

berbastrike wrote: »

What's deluded?

You earning £700K delivering leaflets from your mom's basement whilst sitting on MSE all night.

System

Sproggi, you are wrong. Cost of living would always go up LESS than the interest received every year

Interest rate greater than inflation rate, whether its on £3 or £300k