How much to live on

helensbiggestfan

oh dear. Yes that would be embarrassing.....lol. Poor man.  

Albermarle

Nebulous2 said:

Organgrinder said:

Apologies for returning to the subject of risk etc, but recently I was on a school residential with activities ranging from raft building to rock climbing and high ropes courses. The instructors asked the students what the most dangerous places were in the centre.

Of course, they all chose things like the climbing. No, said the instructor, they are the safest. The most dangerous place in the centre is the canteen.

Most things, if done well, with appropriate training, equipment etc are very safe. 

And I guess the same is true for many of the things we do to make money. Stoozing for example frightens many, but if managed is very low risk for a nice little bit of extra.

So go on, dive in, you never know, you might enjoy spending the returns! ;-)

Good example @Organgrinder That's the point I was trying to put across, the difference between risk and perceived risk. 

Nice linkage with financial risk and reward as well. Part of the problem is so often we won't try things that lie beyond our comfort zone. 

Unfortunately, as we get older, we pull our comfort zone closer and closer. There may be a need to do that with cognitive and physical decline, but I see many people who greatly restrict themselves ahead of that decline. 

I've only been a very occasional gambler, but I sense it would have an attraction for me, which is one reason why I avoid it. I've seen people claim to have made quite a bit of money from matched betting. Other than a very basic outline, I don't know what that entails, but I have been wary of poking that slumbering beast. 

I am a regular punter on the horses - shock horror for an MSE'r 
However the amounts are peanuts, compared to what I can afford, so I do not really see it as gambling.

So I just see it as cheap entertainment. Plus  when I go to the races, I do not pay to go in the posh bits, or eat in the restaurant . Overall it is a pretty low cost hobby, and I do not have any delusions about making money from it.
I appreciate though not everyone can keep a level of control. Being a bit tight, if I lost £100 on a race I would be sick as the proverbial parrot, so that keeps my stakes at a low level. 

MayDogsandCoffee

How Much to Live On:  This seems to change by the hour at the moment or is that just me.  I am hoping this is my last full year in work.  For that purpose I have been living on half salary for approx two years now, saving the other half.  All spending goes onto an excel spreadsheet I have had since 2016.  I do WFH so my outgoing won't go down once I either finish or go part time (although tax will go down on reduced hours).  My plan is to complete maint list on my house, most is done with new windows, conservatory, kitchen and bathroom since lockdown - a couple of small bits outstanding.  Have been mortgage free for a while and no debts at all.  

LL_USS

helensbiggestfan said:

Sounds like you are doing a good job, teaching them valuable life skills and giving them a good grounding.  Your children will thank you in the years to come.  

Thank you @helensbiggestfan. I am trying :-). It seems I am having and will continue to have similar plans for the children like you do.

MarzipanCrumble

Children change.  Oldest splurged a 10k inheritance in very early 20's which I thought was safe because I thought (wrongly) that would need both mine and his signature to get anything out of the Halifax account it was in.  He had the experience of his life though, going to Australia after an internet 'friend' he had met who (I think) exploited him.

Now - he is sensible, got a good job, a Chinese partner who workd in data analysis, excess pays off his mortgage from a regular contribution I make out of excess income to him and 2nd child, enjoys travelling and good food.

So there we go - children change and are their own individuals.  

Organgrinder

Thought something was strange this morning when this thread had reduced in size. A quick look and one user has deleted every single post from the over 50s part of the forum.

There's nowt as queer as folk!

helensbiggestfan

Yes children do change. Or at least they should, hopefully maturing and becoming wiser in the process.  That's why late teens and twenty somethings still need guidance and mentoring. (Assuming of course that they are open minded enough to be receptive to advice.   Some young people can be very closed minded).  

Anything I leave my grandchildren will be written in trust until they are 30.  

Why 30??  Because as I mentioned earlier it is the pre frontal cortex part of our brain that is responsible for reasoning, decision making etc. This does not fully develop until around the age of 25, sometimes slightly later in males.  

Of course age is no absolute guarantee of wisdom, maturity and the ability to make sensible financial delusions. lol. Plenty of middle aged people burn through money...... but at least we can protect our offspring by a judicious use of trusts for when they are at their most vulnerable.  

I may have mentioned this before but when taking out life insurance one should always have the policy written in trust.  This way the money bypasses the estate and the funds can be paid out to the beneficiaries with minimum delay. This can be extremely beneficial when probate is required.  

Albermarle

Organgrinder said:

Thought something was strange this morning when this thread had reduced in size. A quick look and one user has deleted every single post from the over 50s part of the forum.

There's nowt as queer as folk!

Presume you mean our aristocratic friend ?

Organgrinder

Indeed. Hasn't deleted his account this time, just all posts in this part of the forum.

Albermarle

helensbiggestfan said:

Yes children do change. Or at least they should, hopefully maturing and becoming wiser in the process.  That's why late teens and twenty somethings still need guidance and mentoring. (Assuming of course that they are open minded enough to be receptive to advice.   Some young people can be very closed minded).  

Anything I leave my grandchildren will be written in trust until they are 30.  

Why 30??  Because as I mentioned earlier it is the pre frontal cortex part of our brain that is responsible for reasoning, decision making etc. This does not fully develop until around the age of 25, sometimes slightly later in males.  

Of course age is no absolute guarantee of wisdom, maturity and the ability to make sensible financial delusions. lol. Plenty of middle aged people burn through money...... but at least we can protect our offspring by a judicious use of trusts for when they are at their most vulnerable.  

I may have mentioned this before but when taking out life insurance one should always have the policy written in trust.  This way the money bypasses the estate and the funds can be paid out to the beneficiaries with minimum delay. This can be extremely beneficial when probate is required.  

I am not an expert on trusts but on other MSE forums, there are regular comments to avoid trusts as much as possible, despite their surface attraction and the keenness of certain groups of solicitors to promote them, especially as a way to avoid IHT and care home costs ( where they often do not work, or are expensive ) .
I think the negativity is around the cost of setting them up, the cost and hassles of running them, difficulties finding trust bank accounts, problems unwinding them where necessary and potential tensions between trustees and beneficiaries.
There are some exceptions, such as disabled persons trusts, and life interest trusts, but even these are not hassle free. 
So it is clear there are advantages and disadvantages.