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Telegraph "Can we retire on £50,000 per year?" article
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gadgetmind
Posts: 11,130 Forumite
There's a rather puzzling article in Telegraph Money today.
A couple in their late 50s have mortgage free house, about £200k in cash and NS&I linkers, and roughly £2m in pensions, ISAs, etc.
The various experts do say there isn't much to worry about, but their advice to start taking an income from ISAs seems odd (surely you want to use unwrapped first?) but then continuing to put money into ISAs is mentioned. Um?
And later there is "Let's assume the Masons' take £35kpa from their investments, and increase this by 2pc pa. Let's assume they achieve investment growth of 3pc pa. By the time they are 100, their portfolio will still be worth around £540k".
So, they will take 1.75% of their portfolio pa and still manage to reduce its value. Really?
Anyway, if someone can find it online, then maybe they can make more sense of it than me!
A couple in their late 50s have mortgage free house, about £200k in cash and NS&I linkers, and roughly £2m in pensions, ISAs, etc.
The various experts do say there isn't much to worry about, but their advice to start taking an income from ISAs seems odd (surely you want to use unwrapped first?) but then continuing to put money into ISAs is mentioned. Um?
And later there is "Let's assume the Masons' take £35kpa from their investments, and increase this by 2pc pa. Let's assume they achieve investment growth of 3pc pa. By the time they are 100, their portfolio will still be worth around £540k".
So, they will take 1.75% of their portfolio pa and still manage to reduce its value. Really?
Anyway, if someone can find it online, then maybe they can make more sense of it than me!
I am not a financial adviser and neither do I play one on television. I might occasionally give bad advice but at least it's free.
Like all religions, the Faith of the Invisible Pink Unicorns is based upon both logic and faith. We have faith that they are pink; we logically know that they are invisible because we can't see them.
Like all religions, the Faith of the Invisible Pink Unicorns is based upon both logic and faith. We have faith that they are pink; we logically know that they are invisible because we can't see them.
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Comments
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sorry to be brunt but 2 million plus 200000 cash spend 35000 a year using capital only will last50 to 60 yrs even with inflation, why only live of dividends,
if you gave me even 500000 at aged 65, i could easily live of the capital only till i died, prob 83 max.
the film brewsters millions springs to mind, its dam hard to spend over 2.2 million, especially if you have no rent to pay and are an oap.Christians Against Poverty solved my debt problem, when all other debt charities failed. Give them a call !! ( You don't have to be a Christian ! )
https://capuk.org/contact-us0 -
Ah, to be fair, they were wanting to retire fairly soon, and I can't say that I blame them.I am not a financial adviser and neither do I play one on television. I might occasionally give bad advice but at least it's free.
Like all religions, the Faith of the Invisible Pink Unicorns is based upon both logic and faith. We have faith that they are pink; we logically know that they are invisible because we can't see them.0 -
but folk win lotto 1000000 and never work again even if they are young, i dont see how anyone in late 50s cant survive on 2.2 millionChristians Against Poverty solved my debt problem, when all other debt charities failed. Give them a call !! ( You don't have to be a Christian ! )
https://capuk.org/contact-us0 -
Yes, they can survive, but they want a sustainable £50k pa. If they'd said £100k then there would have been a lot of risk, but £50k is a no-brainer.I am not a financial adviser and neither do I play one on television. I might occasionally give bad advice but at least it's free.
Like all religions, the Faith of the Invisible Pink Unicorns is based upon both logic and faith. We have faith that they are pink; we logically know that they are invisible because we can't see them.0 -
I have the paper, but have only read the front section- I dont get to money until Monday at the earliest- I just read last weeks lol!
Will let you know what I think, but from what you said someone made a maths error or a typo?0 -
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only if they buy things cash, a lotto winner said never buy things cash, dont give away money, use the interest to pay for things, make regular gifts to family, not lump sums, they advised.Christians Against Poverty solved my debt problem, when all other debt charities failed. Give them a call !! ( You don't have to be a Christian ! )
https://capuk.org/contact-us0 -
only if they buy things cash, a lotto winner said never buy things cash, dont give away money, use the interest to pay for things, make regular gifts to family, not lump sums, they advised.
That's what I would do. Buy a house with a mortgage and use the interest to pay off the mortgage so you end up with the house and the capital. I'd buy loads of BTR properties too and live off the rental income without touching anything I'd kept of my winnings.0 -
only if they buy things cash, a lotto winner said never buy things cash, dont give away money, use the interest to pay for things, make regular gifts to family, not lump sums, they advised.
I haven't won the lottery and still barely use cash.
I use a CC with freebies and pay it at the end of the month. interest free for 30 days, and free stuff too. what's not to like?0
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