Just became a millionaire

Albermarle

I do agree with you I was just curious how you would assess a DB element.

Well for LTA purposes it is X20 but everybody thinks that is too low.

Most CETV offers are in the region of X 30 to 35 but current market conditions means that is higher than they have been historically .

Mordko's approx estimate of X25 is as good as any for this type of theoretical exercise . A bit more if the T's and C's about inflation linking and spousal pension are  good .

Albermarle

Alice_Holt said:

Albermarle said:

Scrudgy said:

Albermarle said:

Not a convertible , or even a SUV , but a nearly new estate ( 50 miles only ) , so a bit boring really. However it is very nice to drive and comes with all bells and whistles .
As a dedicated MSE'r you will be pleased to hear that due to the unusual state of the car market , four months after I picked it up ( seven months after the price was agreed) it is worth about 10% more now than it was then. Despite being older and having 3k miles on the clock.

BMW 5 Series 530 xDrive M Sport Touring?

Let's not get carried away . I am far too tight to pay through the nose for a German car badge  .

       Skoda Superb ?

No but a car that is very similar in many respects - Mazda 6 touring Sport.
Had one as a company car before I retired, and liked it so much  bought one myself !

Scrudgy

Good choice, had a lot of Mazda’s over many years. Even had the very first Mazda 6 model when they retired the 626. Touch wood had very very few problems and no big bills with any of the Mazda’s I have had. Still got one today, on a CX-5 at the moment.

Audaxer

Roger175 said:

At 39 though, it looks like you are doing fine......personally, I wouldn't worry that much about net worth on paper - it's something of an illusion in the end.

We started recording our net worth over 25 years ago, at which point our net worth was around -£60k. It's now worth just short of £2m. On a day-to-day basis we don't actually feel much better off and are still very frugal because of that, but when things get a bit stressed I do get a warm feeling being able to look at the sums and think, yes, it's gone well behind the scenes.

You have done really well, but just out of interest does that £2m include equity in your home and DC and/or DB pensions?

fizio

I retired early at the start of 2021 (combination of a redundancy offer and a pension that was 200k over LTA) so had a look at my 'net worth' i.e main residence, BTL's, investments & cash - total £2.2m
I don't feel or act like a 'millionaire' but did treat myself to a. 50k new electric car - Polestar 2 - when I retired - best decision so far!!

I think I agree with a few other posters in that being a millionaire is not what it used to be 2-3 decades ago and inflation adjusted you prob need 4-5m to be in the millionaire club of 'buy anything anytime' and lavish hols etc

Roger175

Audaxer said:

Roger175 said:

At 39 though, it looks like you are doing fine......personally, I wouldn't worry that much about net worth on paper - it's something of an illusion in the end.

We started recording our net worth over 25 years ago, at which point our net worth was around -£60k. It's now worth just short of £2m. On a day-to-day basis we don't actually feel much better off and are still very frugal because of that, but when things get a bit stressed I do get a warm feeling being able to look at the sums and think, yes, it's gone well behind the scenes.

You have done really well, but just out of interest does that £2m include equity in your home and DC and/or DB pensions?

Audaxer
Yes, includes the following:-
£900k principal home totally unencumbered  (spent last 6 years building it myself)
£220k equity in rental property - the former family home (£180k BTL mortgage on house worth £400k)
£65k share in inherited property (protected by trust) 
£356k DC pensions (me)
£234k DB pension (wife) taken CETV. She also has another LA pension which will pay £4k/year from 60 but not incl here
£113k S/S ISAs
£81k cash/PBs

Dipped heavily into ISAs and cash to build the house, but it was a dream I had to fulfil! Nevertheless, we turned about £425k into £900k, so not a bad investment.
Both of us age 57, wife retiring next year, I am hoping to give up at 60, but have recently gone freelance, so have flexibility in just how long and how hard I want to work.

R

Audaxer

Roger175 said:

Audaxer said:

Roger175 said:

At 39 though, it looks like you are doing fine......personally, I wouldn't worry that much about net worth on paper - it's something of an illusion in the end.

We started recording our net worth over 25 years ago, at which point our net worth was around -£60k. It's now worth just short of £2m. On a day-to-day basis we don't actually feel much better off and are still very frugal because of that, but when things get a bit stressed I do get a warm feeling being able to look at the sums and think, yes, it's gone well behind the scenes.

You have done really well, but just out of interest does that £2m include equity in your home and DC and/or DB pensions?

Audaxer
Yes, includes the following:-
£900k principal home totally unencumbered  (spent last 6 years building it myself)
£220k equity in rental property - the former family home (£180k BTL mortgage on house worth £400k)
£65k share in inherited property (protected by trust) 
£356k DC pensions (me)
£234k DB pension (wife) taken CETV. She also has another LA pension which will pay £4k/year from 60 but not incl here
£113k S/S ISAs
£81k cash/PBs

Dipped heavily into ISAs and cash to build the house, but it was a dream I had to fulfil! Nevertheless, we turned about £425k into £900k, so not a bad investment.
Both of us age 57, wife retiring next year, I am hoping to give up at 60, but have recently gone freelance, so have flexibility in just how long and how hard I want to work.

R

Yes, your house build worked out very well as an investment, but probably more importantly if it's your dream home.

Looking at the other investments you should have more than enough for a fairly comfortable retirement, especially if you and your wife have full State Pensions to come in 10 years time. Well done.

DT2001

Roger175 said:

Audaxer said:

Roger175 said:

At 39 though, it looks like you are doing fine......personally, I wouldn't worry that much about net worth on paper - it's something of an illusion in the end.

We started recording our net worth over 25 years ago, at which point our net worth was around -£60k. It's now worth just short of £2m. On a day-to-day basis we don't actually feel much better off and are still very frugal because of that, but when things get a bit stressed I do get a warm feeling being able to look at the sums and think, yes, it's gone well behind the scenes.

You have done really well, but just out of interest does that £2m include equity in your home and DC and/or DB pensions?

Audaxer
Yes, includes the following:-
£900k principal home totally unencumbered  (spent last 6 years building it myself)
£220k equity in rental property - the former family home (£180k BTL mortgage on house worth £400k)
£65k share in inherited property (protected by trust) 
£356k DC pensions (me)
£234k DB pension (wife) taken CETV. She also has another LA pension which will pay £4k/year from 60 but not incl here
£113k S/S ISAs
£81k cash/PBs

Dipped heavily into ISAs and cash to build the house, but it was a dream I had to fulfil! Nevertheless, we turned about £425k into £900k, so not a bad investment.
Both of us age 57, wife retiring next year, I am hoping to give up at 60, but have recently gone freelance, so have flexibility in just how long and how hard I want to work.

R

Well done on the house build. I’m hoping to do one more conversion/build for retirement but can only dream of the increased equity you’ve made (max we’ve managed was 25%). All looks good for retirement.

looked at the % of your wealth in property and thought, having read some previous comments about inc. equity, that it was quite high at 55-60%. I then did a quick calculation and see, even if I inc a 25x multiple for our DB’s, we’d have 55% in property.
You have part of that generating income. We have a holiday home that we use for house swaps and do some Airbnb. 

So I do think property has to be included, even in part, in any calculations.

Ibrahim5

If you can happily downsize then it can be an important part of pension planning.I retired early with a nice pot of savings. Will it be big enough? Only time will tell. It's going to be good enough for a long time. If it runs out we can happily downsize and liberate another pot the same size as the first.

Albermarle

DT2001 said:

Roger175 said:

Audaxer said:

Roger175 said:

At 39 though, it looks like you are doing fine......personally, I wouldn't worry that much about net worth on paper - it's something of an illusion in the end.

We started recording our net worth over 25 years ago, at which point our net worth was around -£60k. It's now worth just short of £2m. On a day-to-day basis we don't actually feel much better off and are still very frugal because of that, but when things get a bit stressed I do get a warm feeling being able to look at the sums and think, yes, it's gone well behind the scenes.

You have done really well, but just out of interest does that £2m include equity in your home and DC and/or DB pensions?

Audaxer
Yes, includes the following:-
£900k principal home totally unencumbered  (spent last 6 years building it myself)
£220k equity in rental property - the former family home (£180k BTL mortgage on house worth £400k)
£65k share in inherited property (protected by trust) 
£356k DC pensions (me)
£234k DB pension (wife) taken CETV. She also has another LA pension which will pay £4k/year from 60 but not incl here
£113k S/S ISAs
£81k cash/PBs

Dipped heavily into ISAs and cash to build the house, but it was a dream I had to fulfil! Nevertheless, we turned about £425k into £900k, so not a bad investment.
Both of us age 57, wife retiring next year, I am hoping to give up at 60, but have recently gone freelance, so have flexibility in just how long and how hard I want to work.

R

Well done on the house build. I’m hoping to do one more conversion/build for retirement but can only dream of the increased equity you’ve made (max we’ve managed was 25%). All looks good for retirement.

looked at the % of your wealth in property and thought, having read some previous comments about inc. equity, that it was quite high at 55-60%. I then did a quick calculation and see, even if I inc a 25x multiple for our DB’s, we’d have 55% in property.
You have part of that generating income. We have a holiday home that we use for house swaps and do some Airbnb. 

So I do think property has to be included, even in part, in any calculations.

The stats show that even for relatively prosperous families , the large majority of their wealth is in pensions and their own home . The amounts in other property and other investments/savings ,  are surprisingly low  on average ( proving once again that the inhabitants of this forum are not typical ) 
This starts to change as you start looking at the Top 3% or so, and for richer families still, business assets start to be more prominent.
Interestingly Business Assets are rarely discussed or mentioned on this forum . Probably because most posters seem to be employed, ( or were employed ) rather than owning their own business .