Millionaire by 65

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  • Thrugelmir
    Thrugelmir Posts: 89,546 Forumite
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    fun4everyone wrote: »
    I reckon about £300,000 invested is about the minimum you need to be at the point you can live off it and keep the capital rising in line with inflation.

    You may find that more challenging than it appears.
  • Mr.Saver
    Mr.Saver Posts: 521 Forumite
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    bostonerimus wrote: »
    Good point, the average person with 30 or 40 years to retirement should be aiming to have a million in the pot when they retire. In fact I think they should be aiming to save significantly more as 125 GBP a month is not much to be saving.It would be good if people saved at least 20% of gross salary, So someone in an 25k/year should be saving 420 GBP/month.
    That is about 1/4 of the after-tax income, not an easy thing to do.
  • Mr.Saver
    Mr.Saver Posts: 521 Forumite
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    Thrugelmir wrote: »
    I reckon about £300,000 invested is about the minimum you need to be at the point you can live off it and keep the capital rising in line with inflation.
    You may find that more challenging than it appears.
    I think live off £300k for retirement is totally depending on luck - both market movements and inflation could work against you, and one hit (a market crash or high inflation rate last for a few years) could ruin the entire plan.
  • bostonerimus
    bostonerimus Posts: 5,617 Forumite
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    Mr.Saver wrote: »
    That is about 1/4 of the after-tax income, not an easy thing to do.

    Many people will find it impossible because they are on low salaries and have poor benefits and the shifting of pension contributions from the employer to the employee over the last few decades has made things harder for most workers. But we are where we are and so the brutal truth is that people need to save a lot, start early and manage their money well to be comfortable in retirement. Everyone should have a budget and the top items should be food, housing, insurance, energy/transport to work and saving. I try to minimize the first four so I can maximize saving.
    “So we beat on, boats against the current, borne back ceaselessly into the past.”
  • Wildsound
    Wildsound Posts: 365 Forumite
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    Not to say some of the stuff isn't true or valid things people should think about, but it strikes me more as an AJ Bell advert than anything else. "You MUST save, so do it with us so we can take a cut"
  • bostonerimus
    bostonerimus Posts: 5,617 Forumite
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    Mr.Saver wrote: »
    I think live off £300k for retirement is totally depending on luck - both market movements and inflation could work against you, and one hit (a market crash or high inflation rate last for a few years) could ruin the entire plan.

    I'd say "probability" rather than "luck". The things is, in this game you can stack the deck in your favour so that the probability that you succeed is very high indeed. You need to have an investment and spending plan that can survive high inflation and a market crash.
    “So we beat on, boats against the current, borne back ceaselessly into the past.”
  • bostonerimus
    bostonerimus Posts: 5,617 Forumite
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    Wildsound wrote: »
    Not to say some of the stuff isn't true or valid things people should think about, but it strikes me more as an AJ Bell advert than anything else. "You MUST save, so do it with us so we can take a cut"

    There are plenty of firms out there looking for their cut. That doesn't mean that thrift and sensible investing from an early age is a bad thing, just make sure you minimise your costs and have a plan that will meet your financial goals.
    “So we beat on, boats against the current, borne back ceaselessly into the past.”
  • John_G_Jones
    John_G_Jones Posts: 542 Forumite
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    fun4everyone wrote: »
    I reckon about £300,000 invested is about the minimum you need to be at the point you can live off it and keep the capital rising in line with inflation. That's if you invest it properly and are happy with a frugal lifestyle. Yes of course the amount you need can be argued about endlessly depending on personal circumstance.

    That sounds like penury rather than being frugal.

    You could take what, £8k a year?
  • Broken_Biscuits
    Broken_Biscuits Posts: 356 Forumite
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    kinger101 wrote: »
    It could be worse. It could be Motley Fool.

    Fool recommended marks and Spencer’s the day before the 12% drop and then the day after wrote an article about how you could have spotted the drop in advance and avoided it.

    Same with Lloyd’s and hsbc. 3 days apart, why you should buy Lloyd’s and not hsbc. Then 3 days later why hsbc is the best bank to buy.

    I liked them on Facebook recently to see what they were all about but it’s just multiple times a day contradicting spam.
  • webjaved
    webjaved Posts: 618 Forumite
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    Thrugelmir wrote: »
    A million isn't what it used to be. :o

    Just what I was thinking too!
    dividendhero wrote: »
    The Daily Torygraph is a comic these days, I would rather take financial advice from the pages of Viz

    The Daily Telegraph has become abit of a joke.
    kinger101 wrote: »
    It could be worse. It could be Motley Fool.

    I've stopped reading this nonsense, some of the stuff they come out with is laughable and not accurate at all.
    Save £12k in 2019 #154 - £14,826.60/£12k
    Save £12k in 2020 #128 - £4,155.62/£10k
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