715,000 Millionaires in UK - are you one of them?

Snakey

Oh wait, I'm a liar, I also have an ISA. But I don't see that as "spending money". It's going, eventually, towards either paying off the mortgage or funding an early retirement.

I wonder whether, twenty years ago or even ten years ago, I would have seen things differently. It's possible that I might have thought "wheeee! Look at all this money! I think I'll take a year out and go travelling!" or at least done some sort of "spend half, save half" deal with myself and patted myself on the back at how sensible I was being.

I suspect a long period of economic downturn like the one we're just coming out of, has changed a lot of people's fundamental attitudes towards spending vs saving, the importance of security and a financial cushion against hard times etc.

chucknorris

Snakey wrote: »

Oh wait, I'm a liar, I also have an ISA. But I don't see that as "spending money". It's going, eventually, towards either paying off the mortgage or funding an early retirement.

Same for us, we will continue to invest in both our ISAs and SIPPS well into our 70's (probably later for the ISA's), it will be the last things that we draw from.

Pincher

Pensions, at best you have to put a discount on it, because you have to pay tax to get it out to spend it.

If you had a million in a bank account, that's how much you can spend on fast cars and loose women. If you had a million in a pension pot, how do you shower Roxanne with bribes for love? I know, let me take you to IKEA for their super value breakfast. :rotfl:

ChesterDog

I would be in that category - even excluding my house, just - if we regard it as being the combined assets of my wife and me.

We retired ten years ago at 43/42 and have added to it considerably since then, to roughly the value of the house, in fact, over ten years.

chucknorris

Pincher wrote: »

Pensions, at best you have to put a discount on it, because you have to pay tax to get it out to spend it.

If you had a million in a bank account, that's how much you can spend on fast cars and loose women. If you had a million in a pension pot, how do you shower Roxanne with bribes for love? I know, let me take you to IKEA for their super value breakfast. :rotfl:

But you also have to pay tax on other assets too, for example:

Shares: Tax on dividend income and capital gains (exceeding the annual allowance).
Property: Tax on rental income and capital gains on investment property.
Savings: Tax on savings interest.
Corporate bonds: Tax on coupon interest.

Also a pension can be a good hedge against living longer, I suddenly realised this when I was 52 (ever since then I have been investing the max annual allowance in my pension), we do have plenty outside of pensions, but in retirement you need a lot of that to generate income. Having pensions (either annuity or final salary) allows you to spend more capital as these will be paid until death.

I personally use a multiplier of 27 on my final salary pension, although in reality it is worth more, but as you say, it isn't as good as actually having the cash value, but it is as good as having some other assets. It isn't very wise to hold your wealth in cash, unless you have a very good reason to do so.

edinburgher

Well if that's the case my wife and I are now millionaires.

Excellent, very happy for you, thanks for sharing :beer:

droopsnoot

bigfreddiel wrote: »

So how many of the remaining 713,999 are on this forum?

714,998, surely? :-)


And no, sadly, not me.

jimjames

racing_blue wrote: »

Office for National Statistics do it this way:

http://www.ons.gov.uk/ons/rel/was/wealth-in-great-britain-wave-3/2010-2012/info-wealth-and-assets-survey.html

Included is net property, net financial, physical and private (but not state) pension wealth

Based on that definition I'd expect a large number of technical millionaires. I'd guess that most of them certainly don't feel that rich as the money isn't easily accessible. It's not the same as having £1million in the bank.

rich11

I have less than £16k in actual savings however I own 4 business' outright and I have 2 properties also outright so I am just about there

I go for a pint on Friday nights and always get ribbed by my mates 'Its ok for you you dont have to worry about money' I am there dressed at George from Asda they are there with their £300 shirts and £200 trainers drinking expensive shots looking forward to a 2 day bender.

I'm looking forward to 3 pints and a 6am start at work tomorrow

ManofLeisure_2

bigfreddiel wrote: »

So how many of the remaining 713,999 are on this forum?

Probably quite a few