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Just became a millionaire

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  • Albermarle
    Albermarle Posts: 27,875 Forumite
    10,000 Posts Seventh Anniversary Name Dropper
    edited 12 November 2021 at 12:56PM
    najan49 said:
    I seem to remember hearing recently that in order to live a “millionaire lifestyle” (however that is defined) you currently need about £7m.
    That looks about right . To live a 'Millionaire lifestyle ' then in fact you need to be a multi Millionaire. For example 

    £2.5 million Pound house with swimming pools , home cinema etc
    £1 Million second home overlooking sea in Cornwall 
    £1 million on expensive cars and yacht 
    £2 Million in investments/pension
    £0.5 Million spare change 
  • [Deleted User]
    [Deleted User] Posts: 0 Newbie
    1,000 Posts Third Anniversary Name Dropper
    edited 12 November 2021 at 1:23PM
    Don’t they have the highest density of wealthy people in places like Prestbury, Wilmslow and Knutsford? Like you can’t spit without hitting a Porsche or a multi-millionaire. 
  • ... my extensive cycle fleet is worth a lot more as a collection of parts than as complete bikes.
    Can you recommend a good lock? My bike is 20 years old, but as I came out of the supermarket yesterday someone was staring at it. "You really need to get a better lock. Your brakes are worth £100 and your crank-arms £200".
  • I think the lack of db pensions in the private sector has created a two tier society when it comes to retirement.

    I will never forget a conversation I once had a chat with somebody working for the council, they were complaining they were moving from a final salary pension to a career average pension. He said it's not fair I have contributed into my pension. I didn't bother highlighting the amount he contributed would buy a pension worth a lot less than a career average pension. 

    On the other hand I know skilled tradesmen who have worked for small companies who have very little pension. It shows a lot of wealth is down to good fortune and decisions made early in life. 
    It's just my opinion and not advice.
  • kimwp
    kimwp Posts: 2,945 Forumite
    Fifth Anniversary 1,000 Posts Photogenic Name Dropper
    I think the lack of db pensions in the private sector has created a two tier society when it comes to retirement.

    I will never forget a conversation I once had a chat with somebody working for the council, they were complaining they were moving from a final salary pension to a career average pension. He said it's not fair I have contributed into my pension. I didn't bother highlighting the amount he contributed would buy a pension worth a lot less than a career average pension. 

    On the other hand I know skilled tradesmen who have worked for small companies who have very little pension. It shows a lot of wealth is down to good fortune and decisions made early in life. 
    So true. Many in our company have been on DB pensions and are very upset that they are being swapped to the DC scheme (so their pension will be part DB and part DC with some compensation for changing the scheme). When those who have always been in a DC scheme point out that they will still be far better off, they say that it's not fair because those in the DC have had more time to plan. Lucky us, being able to plan a lower take-home income for a less certain lower retirement income! 🤔
    Statement of Affairs (SOA) link: https://www.lemonfool.co.uk/financecalculators/soa.php

    For free, non-judgemental debt advice, try: Stepchange or National Debtline. Beware fee charging companies with similar names.
  • [Deleted User]
    [Deleted User] Posts: 0 Newbie
    1,000 Posts Third Anniversary Name Dropper
    edited 12 November 2021 at 1:58PM
    kimwp said:
    I think the lack of db pensions in the private sector has created a two tier society when it comes to retirement.

    I will never forget a conversation I once had a chat with somebody working for the council, they were complaining they were moving from a final salary pension to a career average pension. He said it's not fair I have contributed into my pension. I didn't bother highlighting the amount he contributed would buy a pension worth a lot less than a career average pension. 

    On the other hand I know skilled tradesmen who have worked for small companies who have very little pension. It shows a lot of wealth is down to good fortune and decisions made early in life. 
    So true. Many in our company have been on DB pensions and are very upset that they are being swapped to the DC scheme (so their pension will be part DB and part DC with some compensation for changing the scheme). When those who have always been in a DC scheme point out that they will still be far better off, they say that it's not fair because those in the DC have had more time to plan. Lucky us, being able to plan a lower take-home income for a less certain lower retirement income! 🤔
    I think a combination of DB and DC gives the best of both worlds. Having basic needs covered from DB and lots of investments on top to capitalize on market gains and fund toys = perfect scenario. 
  • AlanP_2
    AlanP_2 Posts: 3,520 Forumite
    Part of the Furniture 1,000 Posts Name Dropper
    What I track is:

    Net Current Assets -> current accounts + cash basically less credit cards. This (particularly the comparison over a few months) indicates whether I need to move some cash from longer term savings accounts / S&S ISAs to fund day / day expenses.

    Net Worth -> Net Current Assets + DC Pensions + ISAs, PBs etc. less Mortgage and any larger / longer term debts than CCs (currently paying for something over 3 years at 0%). As you would expect this bounces around a lot dependent on market conditions.

    I then subtract pensions from New Worth to see what we "actually have now". Was more useful when money was tighter as you could see whether you had all your debt covered with (ideally)  at least some surplus.

    If I factored in house value and some estimate for value of DB pensions being accrued it would be well over £1m but so what; we can't go out and buy something for £1m with it.
  • zagfles
    zagfles Posts: 21,443 Forumite
    Part of the Furniture 10,000 Posts Name Dropper Chutzpah Haggler
    Ibrahim5 said:
    I have always lived in the grim north. Working hard surrounded by grime I have made it to be a millionaire. Can I have some special congratulations for doing it from the north please.
    No. It's easier in the North as you don't have to waste so much money on housing ;)

  • Prism
    Prism Posts: 3,847 Forumite
    Seventh Anniversary 1,000 Posts Name Dropper
    kimwp said:
    I think the lack of db pensions in the private sector has created a two tier society when it comes to retirement.

    I will never forget a conversation I once had a chat with somebody working for the council, they were complaining they were moving from a final salary pension to a career average pension. He said it's not fair I have contributed into my pension. I didn't bother highlighting the amount he contributed would buy a pension worth a lot less than a career average pension. 

    On the other hand I know skilled tradesmen who have worked for small companies who have very little pension. It shows a lot of wealth is down to good fortune and decisions made early in life. 
    So true. Many in our company have been on DB pensions and are very upset that they are being swapped to the DC scheme (so their pension will be part DB and part DC with some compensation for changing the scheme). When those who have always been in a DC scheme point out that they will still be far better off, they say that it's not fair because those in the DC have had more time to plan. Lucky us, being able to plan a lower take-home income for a less certain lower retirement income! 🤔
    I think a combination of DB and DC gives the best of both worlds. Having basic needs covered from DB and lots of investments on top to capitalize on market gains and fund toys = perfect scenario. 
    Absolutely. We feel lucky to have a nice DB government backed pension underpinning our DC pots. Its a shame that often it seems to be either one or the other, especially when it comes to DB transfers. I imagine if partial DB transfers were an option people would have a more balanced approach. I suppose those with DC pots can buy an annuity but that seems to scare people off for some reason nowadays.
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