How Wealthy are you?

Audaxer

DairyQueen wrote: »

Use a variable withdrawal rate strategy. Hold cash in reserve to suspend drawdown if necessary. Increase withdrawal in good years. Have sufficient guaranteed income to cover all basic expenses.

Running down all your capital makes more sense to me now as you have guaranteed income to cover all basic expenses.

Yet_More_Puddylove

Is wealth related to happiness?
I have had a lovely life so far - studied when and what I wanted, had 'fun' jobs which I enjoyed, and picked a career in education for the love of it, rather than to become rich.
I don't have any assets but I don't have many regrets either.

I have friends who have inherited wealth, or whose partners support them - I have never seen more miserable, purpose-less folk ever. Money really hasn't made them happy.

MaxiRobriguez

OldMusicGuy wrote: »

Don't disagree with that when it comes to getting on the property ladder. Which is part of the reason that we are using our property wealth as part of our retirement planning. We are downsizing now (aged 62) to release equity from our current place. We will give 50% of the equity to our son to help him get on the property ladder, the rest goes into our retirement funds.

We have told him to expect nothing when we die as we plan to spend everything that is left and run our capital to zero. Partly that will be achieved by annuitizing savings/pensions as we get older.

He shouldn't expect any more if you downsize and give 50% of the equity to him. You've already given him the inheritance in advance of your passing! Very generous too, hope he knows he's lucky.

aroominyork

MaxiRobriguez wrote: »

He shouldn't expect any more if you downsize and give 50% of the equity to him. You've already given him the inheritance in advance of your passing! Very generous too, hope he knows he's lucky.

A curiously strong reaction, Maxi, but I guess family finance dynamics have deeper roots than the day to day passive vs. active discussions on this forum! We've helped our kids onto the property ladder and hope to leave them some inheritance, but I don't really see the former as influencing the latter - it's not as if we either help them now or alternately give them a more comfortable retirement.

While most people in our parents' generation generally had few expectations about receiving money from their parents, property prices have changed that dynamic, at least for the middle class. Although Terry Smith avoids financial stocks, even he might have been tempted if he'd foreseen how much The Bank of M&D plc would rise in value!

Albermarle

Is wealth related to happiness?

Clearly not , but as someone once said it can buy you a more comfortable misery !
Stats usually show that happiness increases with income, but only up to a certain level and then it flattens out.

I don't have any assets

This will probably come back to bite you when you are older. Not very nice being over 60 and having to shift from one grotty rented flat/mobile home to another , and reliant on the whims of others .

MaxiRobriguez

aroominyork wrote: »

A curiously strong reaction, Maxi, but I guess family finance dynamics have deeper roots than the day to day passive vs. active discussions on this forum! We've helped our kids onto the property ladder and hope to leave them some inheritance, but I don't really see the former as influencing the latter - it's not as if we either help them now or alternately give them a more comfortable retirement.

While most people in our parents' generation generally had few expectations about receiving money from their parents, property prices have changed that dynamic, at least for the middle class. Although Terry Smith avoids financial stocks, even he might have been tempted if he'd foreseen how much The Bank of M&D plc would rise in value!

The key word is "expect"

This poster has downsized to free up equity which the child has benefited from. They therefore shouldn't *expect* another round of inheritance later on. Most kids get next to nothing, let alone two rounds of funding.

If OldMusicGuy wasn't going to wind down their capital into their later years then that's fine and another nice gesture to provide further for their child, but the child shouldn't be expecting it.

My parents are still here and helped me onto the property ladder. They've own their home outright and I could possibly expect more still, but I reckon the equity will either be used to finance some cruises in later years and/or nursing care if they need it. I'm not expecting to see a penny of that equity.

Anonymous101

Yet_More_Puddylove wrote: »

Is wealth related to happiness?
I have had a lovely life so far - studied when and what I wanted, had 'fun' jobs which I enjoyed, and picked a career in education for the love of it, rather than to become rich.
I don't have any assets but I don't have many regrets either.

I have friends who have inherited wealth, or whose partners support them - I have never seen more miserable, purpose-less folk ever. Money really hasn't made them happy.

Money is not the main driver for hapiness. The evidence from various studies suggest that it makes no difference at all beyond income of about £40k.


Interesting pod cast if anyone fancies a listen
https://drchatterjee.com/re-defining-happiness-professor-paul-dolan/

Seabee42

Money is of course not a guarantee of happiness. What it does is allow choice in what you do with your life. If you are financially independent you can choose to do that job or not, to go away or not and so on.


It means the chance of you getting stuck in a job you don't like to pay the bills is zero.

aroominyork

MaxiRobriguez wrote: »

The key word is "expect"

This poster has downsized to free up equity which the child has benefited from. They therefore shouldn't *expect* another round of inheritance later on. Most kids get next to nothing, let alone two rounds of funding.

If OldMusicGuy wasn't going to wind down their capital into their later years then that's fine and another nice gesture to provide further for their child, but the child shouldn't be expecting it.

My parents are still here and helped me onto the property ladder. They've own their home outright and I could possibly expect more still, but I reckon the equity will either be used to finance some cruises in later years and/or nursing care if they need it. I'm not expecting to see a penny of that equity.

I think I answered the 'expect' point but it's worth pointing out there are two subtle but importantly different meanings of the word: what you think will happen (I expect Blue Boy to win the 2.40 at Haydock) and what you are planning around (I expect I'll watch the 2.40 at Haydock). So, in my own circumstance, I expect my father will leave me a sizeable inheritance but I am not expecting it.

Yet_More_Puddylove

As I said, I'm lucky in that I have a job I enjoy, and earn more than the £40k mentioned. I also have pensions (but no pot so no asset there).
So I'll be alright.

I have watched a number of people around my age die suddenly in the last few years (terminal cancer, heart attacks, etc.) so am glad I prioritised happiness. I appreciate there is a balance to be had, so will be buying a house as soon as the stars align.

But - there are no pockets in a shroud.