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If you are wearing my shoes. (Redux)

24

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  • eskbanker
    eskbanker Posts: 38,022 Forumite
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    Thumbs_Up said:
    Lloylds will be ok with dividends this year.
    Depends what your benchmark is, but the 1.24p per share in (calendar) 2021 is only just above 2% of the current price, so not a particularly generous yield, although obviously better than the 0% paid during most years since the 2008 price collapse....
  • Thumbs_Up
    Thumbs_Up Posts: 965 Forumite
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    Interest rates up this year, share price up this year ?
  • eskbanker
    eskbanker Posts: 38,022 Forumite
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    Thumbs_Up said:
    Interest rates up this year, share price up this year ?
    Possibly, but that does come across as the gambler trying to convince himself that 'this year is going to be the one that changes everything and it all comes good (despite the previous 5/10/15....)'
  • Thumbs_Up
    Thumbs_Up Posts: 965 Forumite
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    I’m not dreaming for the Porsche on the drive, just slow steady growth. I will be out of the game when I 65, so I have 10 years...




  • eskbanker
    eskbanker Posts: 38,022 Forumite
    Part of the Furniture 10,000 Posts Name Dropper Photogenic
    Thumbs_Up said:
    I’m not dreaming for the Porsche on the drive, just slow steady growth. I will be out of the game when I 65, so I have 10 years...
    If you're looking for slow steady growth over ten years, then there are many collective investments that will achieve this objective way more successfully than punting on individual shares!
  • Thumbs_Up
    Thumbs_Up Posts: 965 Forumite
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    You are not wrong, it all depends on risk and appetite. You may want a world cruise, i don't. You my want a new car, i don't. I have some leeway, you probably don’t. But i say again you are not wrong.  





  • QrizB
    QrizB Posts: 19,712 Forumite
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    edited 8 January 2022 at 10:48PM
    Thumbs_Up said:
    QrizB said:
    Thumbs_Up said:
    I am a single man with no children, currently not in a relationship, unemployed and living with a relation. Claiming no state benefits soon to be 55 years of age and frugal.... will be looking for a home to purchase some time in the future.
    Your assets & pensions could (if invested carefully) yield you something like £24k pa indefinitely, but if you spend £200k on a home that number is going to be more like £15k. Which might still be OK for a frugal single man.
    Please tell me you overlooked the state pension in your £15k calculation? Regarding the home i'm open to anywhere in this country, where the homes are cheap, the people are nice (that rules out the southeast) and the weather is mild in the winter.
    No, I did not overlook the state pension, although I was somewhat pessimistic with £24k/15k. It's £26k/£20k.
    You have £500k of assets plus pensions and are 55 years old.
    • 55 to 60 - 5 years @ £26k from assets - £130k
    • 60 to 67 - 7 years @ £23k from assets - £161k plus (£3k pension pa)
    So at 67 you'll have spent £291k from your £500k and have £209k left, plus £98k from your DC pension. That's £307k. Safe drawdown rates are much discussed but if we go with 4%, £307k will yield £12k pa. Plus state & £3k pensions makes £25k pa for the rest of your life.
    If you spend £200k on a home, you're only starting with £300k.
    • 55 to 60 - 5 years @ £20k from assets - £100k
    • 60 to 67 - 7 years @ £17k from assets - £119k plus (£3k pension pa)
    At 67 you'll have spent £219k and have £81k left, plus £98k DC - total £179k. 4% drawdown will yield £7k, Plus state & £3k pensions makes £20k pa for the rest of your life.

    My model isn't very complicated but you can see how I got those numbers.
    N. Hampshire, he/him. Octopus Intelligent Go elec & Tracker gas / Vodafone BB / iD mobile. Ripple Kirk Hill Coop member.
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  • atush
    atush Posts: 18,731 Forumite
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    If you are unemployed, why are you not claiming Job seekers allowance, and looking for work?

    Are you paying rent to the relative you live with?
  • eskbanker
    eskbanker Posts: 38,022 Forumite
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    eskbanker said:
    Thumbs_Up said:
    I’m not dreaming for the Porsche on the drive, just slow steady growth. I will be out of the game when I 65, so I have 10 years...
    If you're looking for slow steady growth over ten years, then there are many collective investments that will achieve this objective way more successfully than punting on individual shares!
    Thumbs_Up said:
    You are not wrong, it all depends on risk and appetite. You may want a world cruise, i don't. You my want a new car, i don't. I have some leeway, you probably don’t. But i say again you are not wrong.
    That's not really the point though - you're talking there about investment objectives, which are of course personal.

    My post was referring to the fact that (sufficiently diversified) collective investments are inherently less volatile than individual shares, and are therefore intrinsically more suited to a stated objective of steady growth (although neither can really guarantee this).
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