how many people on here are millionaires (including "on paper")

TheBlueHorse

I'm not. But I am not that far away.

mayonnaise

As I don't want to be accused of forum willy waving, I decline to answer.

michaels

How do we value pensions?

chewmylegoff

I am a multi millionaire entirely as a result of my amazing interest rate gamble which has just paid off again and again and again.

purch

I am a billionaire many times over (currency not disclosed) :eek:

chucknorris

mayonnaise wrote: »

As I don't want to be accused of forum willy waving, I decline to answer.

Firstly I will say that obviously it is better to be comfortable than poor and struggling. But I honestly don't think that 'millionaire' means that much any more, certainly it isn't the label that it used to be. You can have people who are millionaires through their property, but don't have that much of an extravagant lifestyle, and are not in a position to downsize (obviously later in life they might be able to). Also a couple of two teachers with plenty years in their final salary pensions, would be millionaires on paper too. I'm not saying it is meaningless, but it doesn't have the connotations that it used to.

purch

michaels wrote: »

How do we value pensions?

When we retire.

the_flying_pig

I definitely would be, even without pension value, if:


(a) I did away with my wife, entitling me to her half of the house and her company's exceptional death-in-service benefits; and
(b) it wasn't for the pesky slayer rule (http://en.wikipedia.org/wiki/Slayer_rule).

chucknorris

michaels wrote: »

How do we value pensions?

I used to compare my DB pension to the pension pot necessary to buy an annuity on equivalent terms (i.e. indexed to inflation, single life (it is partly not single life but I ignored that) etc.) so I used a multiplier of 28. Now that you can drawdown, I use a multiplier of 26, maybe you could lower that, but it depends on your attitude to (and ability to take on) risk whilst drawing down.

wotsthat

It's not how big it is that counts but what you do with it that matters (I hope ).

There was a TV show last night about a couple with a small child wanting to move to Mauritius to set up a wind kite school. The woman was a non-working mother and the man working in the city earning £9k/ month. They rented, had no money in the bank, had outgoings approaching £6k/ month and their worldly possessions (including cars) were valued at about £5k. The man was as miserable as sin in his job too. Made me feel a bit sick.

I'll be retired before I'm a millionaire - I can have and do everything I want with that sort of net worth (depending on accessibility) and some of the things on my 'bucket list' only require time which isn't for sale.

Loughton_Monkey

michaels wrote: »

How do we value pensions?

Judging by the numbers who spurn matching employer contributions, I would say we don't!

Defined Contributions pensions are easy. Just set up and plug your data into a Trustnet Portfolio tool.

Final Salary are also easy. I used to write in for transfer values (before the normal retirement date). Just before retirement date, you get a statement of value accurately, especially as normally 25% of the total forms the tax free lump sum.

State Pensions can be valued (normally) approaching the £200K mark at pension age. Simply find out how much you're getting, and plug that into an annuity calculator (RPI linked) and see what you need to put in to get the same pension.