Anyone can become a multi-millionaire

Gadfium

The Dunning-Kruger effect is strong in this one....

BananaRepublic

bigfreddiel wrote: »

You've all missed my point, probably my fault

The point is ANYONE can become a millionaire WITHOUT costly advice from an advisor. You just need to apply yourself because it isn't difficult. It's the 'experts' that make it sound difficult to put people off trying to learn a little and then get on with it, after all it's not exactly rocket science is it. Cheers fj

I wish it was that easy. If you want to have a life, which means going out for a meal once a month, going to clases in French or dancing, going ice skating, or to the flicks, and so on, then you will eat into your income. Oh, and if you marry, and have children, well, they eat up income too.

And then there is the risk element. I could have invested in a property 15 years before I did, but there was a high risk for various reasons. You might invest anyway, then find house prices tank, as happened in Ireland, or invest in Japan 20 years ago, and only now is you money worth more than when you invested. What you are looking at is an example of one person, who has made 'wise' investment decisions, but really that has zero statistical significance. For every person like him, there might be 10 or even a 100 similar people who failed because their investments did not work out, or they okay but did not have big time luck. Me, I've got enough in the bank that I will have a comfortable retirement, so I'm spending some of my wodge while I still have my health. The last think I want is relatives to inherit loads of unused money from me ... they can earn their own thank you ...

And lastly, let's assume someone can put away £2,000 per year. So over 40 years say, that is over £80,000 with no growth. Now assume 8% per year, so the calculation is:

2,000 + 1.08*(2,000 + 1.08*(2,000 + ... )) = 2,000*(1 + 1.08 + 1.08*1.08 + 1.08*1.08*1.08 + ... )

Basically you follow that through with 40 lot's of 2,000. Now I think that resolves to:

£2,000 * (1.08^40 -1 ) / (1.08 - 1) ~ 259 * 2,000 = £518,000

Well that is well short of 1 million pounds. But bear in mind that inflation means that the result will have far less buying power than today. Now let's assume 60 years saving and we get roughly £2,000 * 1253 which is about 2.5 million pounds.

Or, to account for inflation, let's assume we always put away £2,000 each year but adjusted for inflation. And let's assume our return is 5% above inflation which is quite high. So now after 40 and 60 years we get about half a million and 2.5 million pounds respectively in today's money.

So really you have to save for a LONG time, and save substantial amounts, and get a good return. I assumed a good return over all years but wars and economic crises can and do intervene.

bigadaj

BananaRepublic wrote: »

So he was a miserable old get who stayed up late at night in his tatty underpants and string vest counting his sheckels and cackling to himself. Sounds like something to aspire to.

You don't know for certain bigfreddiel matches that description though, do you?

Pincher

Is the Grand Inquisition a product of a collective of low achievers to bring down high intellect free thinkers?

Or is it a bunch of highly intelligent ambitious people who decide to run the world accordingly to their will?

These human traffickers in Turkey don't even need to read.
They just have to sense Europeans are a bunch of softies, who will not let the boats sink. Lots of money to be made from desperate people. Human Fly tipping with no fines.

As we see from Sir Philip Green, it does not take a bright person to make lots of money. You just need a scruples-ectomy.

Ray_Singh-Blue

Earlier in the thread someone asked how millionaires are created. I'm not one of them, but I do like to punch everything into a spreadsheet. So I know that my household's "on paper" wealth can be attributed to:

1. house price inflation 46%
2. unconsumed earned income 34%
3. windfall (inheritance) 13%
4. return on investments 6%

BananaRepublic

Pincher wrote: »

As we see from Sir Philip Green, it does not take a bright person to make lots of money. You just need a scruples-ectomy.

Philip Greed does indeed demonstrate the value of no conscience. I've met a few people like that in business, they usually manage to flee before the excrement hits the rotary air stirring device, after trousering a hefty wodge. But to be fair, most people I've met who run businesses are fundamentally decent people, Phillip Greed is an exception, albeit a rather odious one.

Malthusian

jimjames wrote: »

How do you know he didn't have an advisor?

Not only does he not know he didn't have an advisor, but we know that in fact he did have an advisor - at least two actually. His "longtime lawyer" who knew his investments inside and out didn't work for free, and a small part of his portfolio was under discretionary management.

However, I'm obviously missing the point here, which is that one guy amassed C$8 million without using an advisor (apart from his lawyer and his stockbroker), therefore anyone who doesn't use an advisor will become rich. Just like how my Aunt Ethel smoked a pack of cigarettes a day and lived to 90, therefore we can all live to 90 by taking up chain-smoking.

edinburgher

Gadfium wrote: »

Nice bit of confirmation bias there. How do you know that he didnt use an advisor? How do you know that he didn't use a stockbroker?

Hey-ho...another day, another chance to tell everyone of your dislike of professionals and how much you're worth....
:D:D

Indeed, it's why he's on ignore

jamesd

kingrulzuk wrote: »

im not in the higher tax bracket as I only earn between 32k and 35k a year, but I pay a lot of tax, NI and council tax which im not happy about. and im trying my best to find ways to avoid paying this

You can avoid the income tax by buying VCTs. 30% tax relief on the purchase price, capped at income tax payable in the tax year of purchase. Have to hold for five years or repay the 30%. So if you can afford to defer some of your income for at least five years you can get your effective income tax level close to zero. VCTs are investments with a wide range of risk levels available, investigate before doing this.

edinburgher

jamesd, from memory kingrulzuk doesn't even have a pension, more conventional investments might be a better starting point for him.