Just became a millionaire

Mistermeaner

Really enjoyed reading all the replies, thanks 

Not that my specifics matter to the overall discussion but as a few people asked : 

Wealth is 'ours' although we're not married - the missus doesn't work and had around 50k in her dc pension when we met plus a few 10k in savings. Bulk of it is savings in my name and my earnings (of course enabled by her looking after the kids and home)

We have no db pension. 750k in dc pensions + Lisa's + isas. House worth about 475k with 200k left on mortgage . Not debts loans or credit cards

Be interested if anyone think any of lifestyle 'advice' is incorrect or if anything is missing ?

P s i also subscribe to n+1 bikes. Gotta have some fun  

bostonerimus

Mistermeaner said:

Really enjoyed reading all the replies, thanks 

Not that my specifics matter to the overall discussion but as a few people asked : 

Wealth is 'ours' although we're not married - the missus doesn't work and had around 50k in her dc pension when we met plus a few 10k in savings. Bulk of it is savings in my name and my earnings (of course enabled by her looking after the kids and home)

We have no db pension. 750k in dc pensions + Lisa's + isas. House worth about 475k with 200k left on mortgage . Not debts loans or credit cards

Be interested if anyone think any of lifestyle 'advice' is incorrect or if anything is missing ?

P s i also subscribe to n+1 bikes. Gotta have some fun  

“‘My other piece of advice, Copperfield,’ said Mr. Micawber, ‘you know. Annual income twenty pounds, annual expenditure nineteen nineteen six, result happiness. Annual income twenty pounds, annual expenditure twenty pounds nought and six, result misery.”

That's my foundation.

I agree with many of the truisms in your first post, but always remember that things can change just when you least expect. As you are not married I would make sure you have a will so that your wishes are explicit and sufficient life insurance.

Robwales

Mistermeaner said:

We have no db pension. 750k in dc pensions + Lisa's + isas. House worth about 475k with 200k left on mortgage . Not debts loans or credit cards

youre doing really well IMHO - i just looked at an old xls and think i was circa @ £450k DC + ISA + Savings at 42...all earned by myself with no debts or inheritance or other leg ups.  Like you my missus doesnt work and have 3 (not 4) kids.   Eight years later, and we are over £1.5m mark now (im not counting my house as we gotta live somewhere right - and i dont live in SE so no astronomical house equity going on) - all due to working my !!!!!! off for the last xx yrs, luck of course, and being pretty low key and prudent (i drive a 2007 car as way of example).  I kinda thought i had made it when i got to the £1m, but soon realised doing the maths and young kids even this massive number wont be enough for us yet....aiming for £2m @ 55 and then hope to retire...unless i pop it due to work stress or get kicked out (could be on the cards).  Wish id got a career with a DB pension instread but there is no going back eh!

kimwp

Mistermeaner said:

Really enjoyed reading all the replies, thanks 

Not that my specifics matter to the overall discussion but as a few people asked : 

Wealth is 'ours' although we're not married - the missus doesn't work and had around 50k in her dc pension when we met plus a few 10k in savings. Bulk of it is savings in my name and my earnings (of course enabled by her looking after the kids and home)

We have no db pension. 750k in dc pensions + Lisa's + isas. House worth about 475k with 200k left on mortgage . Not debts loans or credit cards

Be interested if anyone think any of lifestyle 'advice' is incorrect or if anything is missing ?

P s i also subscribe to n+1 bikes. Gotta have some fun  

I thought your advice list was a good one. I hadn't come across the idea of increased pension contributions instead of overpaying the mortgage until I'd already paid mine off - no regrets as it meant fewer worries in the pandemic with lay-offs at work, but I think I might have taken a different approach if I'd known about the benefit of time in the market.

DT2001

Robwales said:

Mistermeaner said:

We have no db pension. 750k in dc pensions + Lisa's + isas. House worth about 475k with 200k left on mortgage . Not debts loans or credit cards

youre doing really well IMHO - i just looked at an old xls and think i was circa @ £450k DC + ISA + Savings at 42...all earned by myself with no debts or inheritance or other leg ups.  Like you my missus doesnt work and have 3 (not 4) kids.   Eight years later, and we are over £1.5m mark now (im not counting my house as we gotta live somewhere right - and i dont live in SE so no astronomical house equity going on) - all due to working my !!!!!! off for the last xx yrs, luck of course, and being pretty low key and prudent (i drive a 2007 car as way of example).  I kinda thought i had made it when i got to the £1m, but soon realised doing the maths and young kids even this massive number wont be enough for us yet....aiming for £2m @ 55 and then hope to retire...unless i pop it due to work stress or get kicked out (could be on the cards).  Wish id got a career with a DB pension instread but there is no going back eh!

I’m impressed with your progress. (We have 4 children - all at home or Uni)
Do you mind telling us your ‘number’?
I’m 10 years older but luckily had 3 small DB’s to top up our private pensions/ISA’s which are considerably less than yours. I am closer to SPA so have less of a gap to fund but think conservatively will have £4K p.m. income.

[Deleted User]

bostonerimus said:

DairyQueen said:

We have been 'paper' millionaires for over a decade. Why doesn't it feel that way?

Because how much money you have does not (or at least should not) define you. Also I think people who have become wealthy over many years by thrift and regular saving/investing tend to keep the same lifestyle they had before they become "rich".

But being wealthy comes with it's own set of issues...I won't call them problems. There's LTA and tax and you quickly realize that giving money away is a new goal. Estate planning becomes a big issue. Right now I'm trying to stay below some US government IHT thresholds and almost battling against stock market and home price increases.

$11M exemption threshold? If you are ever stuck looking for someone to donate to, I could be of assistance.

fizio

On an earlier point I think being a ‘asset’ millionaire when you include a home and pension is within grasp of many people who are HRT with a ‘corporate’ job and the real challenge is to get to 1m excluding those 2 asset classes. Once retired its a different measure as you can downsize and access the pension fund so getting your hands on 1m is more do-able.

Albermarle

Wealth is 'ours' although we're not married 

Unless there is a reason not to , then better to get married. Really simplifies financial affairs in later life , especially if one of you dies ( sorry to be morbid)

Albermarle

fizio said:

On an earlier point I think being a ‘asset’ millionaire when you include a home and pension is within grasp of many people who are HRT with a ‘corporate’ job and the real challenge is to get to 1m excluding those 2 asset classes. Once retired its a different measure as you can downsize and access the pension fund so getting your hands on 1m is more do-able.

As said earlier there are various definitions of a millionaire.
An asset millionaire family/couple being the most numerous( about 15% of the population according to the ONS )  and at the other end to lead a millionaire lifestyle you need a few Millions 

ONS statistics show that if a couple has £2M in assets ( including pensions and property ) that includes about 5% of the population.

michaels

Albermarle said:

fizio said:

On an earlier point I think being a ‘asset’ millionaire when you include a home and pension is within grasp of many people who are HRT with a ‘corporate’ job and the real challenge is to get to 1m excluding those 2 asset classes. Once retired its a different measure as you can downsize and access the pension fund so getting your hands on 1m is more do-able.

As said earlier there are various definitions of a millionaire.
An asset millionaire family/couple being the most numerous( about 15% of the population according to the ONS )  and at the other end to lead a millionaire lifestyle you need a few Millions 

ONS statistics show that if a couple has £2M in assets ( including pensions and property ) that includes about 5% of the population.

I wonder what those percentages would be if you valued DB pensions at the cost of buying an equivalent annuity?