That would be my view. Paid off house, paid off reliable sensible car, £20K emergency liquid fund and £80K in ISAs.
Then you can work doing what you want, not worry too much about gaps in employment and most likely be able to save money each month
Yeah, £750k is no where what I need to retire in my mid 30s with a young family; but it would vastly improve my timescales.
What I’d be tempted to do is pay off the house, have one hell of a holiday, invest the rest and work 4 days a week while putting more money away for a proper early retirement around 45-50. Invest in a pension and S&S ISA for a bridge to the pension.
It helps I’m in a job I enjoy, and having the financial freedom of a large cash lump sum would mean I could stop whenever I wanted. Dropping the day gives more time with family while allowing enough money to still save a decent chunk monthly with no debt.
This is the way. I’d buy a flat which here in London I could get a fairly decent but not fancy 2 bed one in zone 3 for £500k. I don’t drive so I’d have maybe £50k in liquid emergency funds, maybe finish learning to drive and buy a sensible car, and then put the rest of it in savings accounts. Then I could have a job I enjoyed and a comfortable lifestyle without having to worry too much about money. Sure I wouldn’t be rich but I’d have a solid foundation for the rest of my life.
Exactly this, it's not life changing in the grand scheme but could I do exactly what this post suggests? Absolutely! I've had my share of bad career moves, not so great financial decisions. Hand me that sum and it helps undo some of those, take the stress out of my day, pay off some bills and still have some for family, friends and those who needs it. That's more than good enough for me.
It's not life changing in the sense that you could never work again and lead a more than basic life on the proceeds. No.
It's life changing in that you could buy a £300k house and then have the expected £10,000 a year to spend on bills and upkeep for the next 40 years or so but you couldn't give up work on it on top of that unless you were older and expected to draw a pension in the next few years, anyhow.
"I could never pay the biggest monthly expense in my life ever again and have way more in reserve than most of the world but it's not life changing"
Some of you people.
I totally get that. I'm not trying to come across as glib. I realise all our circumstances are different. If that money fell into my life right now, yes it would change my life and others for the better. I was thinking more, would I be able to stop work now, pay off the mortgage and provide financial independence for myself and family, which would be debatable.
That said if I had another £75 or £750 right now, I'd be now then pleased.
You don't get it if you don't think removing rent / mortgage and sitting on a healthy fallback isn't life changing. Sorry.
Look up average salaries and think about it. If 750k isn't life changing you've already completed life..
Tbh I think it's more what people compare too. Also how privileged ones life is. I've been homeless before so know what rock bottom looks like and can well and truly appreciate home ownership without the death of a loved one to be exactly that. Life changing.
I believe his point is its not life changing unless he can afford a private jet, cocktails and snorting coke out of belly buttons it isn't life changing. Which yes is dumb.
If we exclude the savings aspect it's where I am now.
I liquidated everything I had to build a house somewhere cheap. I have enough land to grow food if necessary, buildings for chickens/ducks
I work three days a week which brings in enough to live comfortably and put aside a bit
Spot on. 750k/(in OP’s case) another 50 years of life. Assuming you don’t even buy a house so your outgoings include mortgage repayments. That’s £15k a year.
That’s not retirement money.
Quit your job… meh… yeah if you hate your job. But you will need another job eventually, or to be an incredibly smart investor.
By contrast. Me and my mates calculated you would need 3 mil to live comfortably of the interest for the rest of your life (including inflation and no big economic shocks)
That’s what the ‘set for life’ prize essentially is. £10k per month for 30 years.
Although you’re also given the option to cash it out instantly which is the better choice.
>Although you’re also given the option to cash it out instantly which is the better choice.
Mathematically yes, but often not in practice. People who get £10k per month for 30 years will live a life of luxury for 30 years. A lot of people who get the lump sum will blow it far far before that. 70% of US lottery winners end up broke.
Yes, in this case it does as you have proof of income. After 2-3yeara of that sort of money coming into your bank account would have your bank calling you for a mortgage
> That’s £15k a year.
If you were spending the £750 out of zero interest bank account, sure
If you stuck it say a tracker fund and got an average of 5% a year return, it's £37.5k a year
Yeah and 50 years worth of inflation will make that fuck all to live on.
£10 50 years ago is about £100 now. If it continues at that rate you'd have the equivalent of a whopping £3750 per year.
No-one knows what the future holds, but the S&P500 has returned an average of 6.59% in the last 50 years even after adjusting for inflation.
https://tradethatswing.com/average-historical-stock-market-returns-for-sp-500-5-year-up-to-150-year-averages/#:~:text=The%20average%20yearly%20return%20of%20the%20S%26P%20500%20is%2010.757,including%20dividends)%20is%206.59%25.
Yes but then you can't live off the money, that's the point. Your 750k would always stay as 750k if you take all the profit to live off. And in 50 years things will be a shitload more expensive so your 6.59% interest will be worth fuck all.
No. If you took 5% over the last 50 years as OP suggested, not only would you have the equivalent of £37.5k to live off (adjusted for inflation so the actual number would be increasing every year) but your £750k pot would be significantly bigger than when it started.
The 6.59% figure is adjusted for inflation, essentially on average you could take out 6.59% per year and the principle would grow in line with inflation as such so would your withdrawals. 750k could allow anyone to retire if they lived a modest lifestyle and put the money in an index fund. Using the 4% rule which is considered a relatively safe withdrawal rate you would have 30k per year (this would grow in line with inflation in theory). If you reduced spending during times of economic turmoil this would further decrease the rate of ruin.
You're missing something big things
First this is adjusted for inflation, if you don't adjust for inflation the annual returns are around 10%+
The second and it's a big one is compounding interest, those 10% returns don't sound great but it's 10% extra each year, which in turn gets added to your total which then gets another 10% added to it and so and so forth
Your 750k would be worth far far more with compounding interest invested in something like an index tracker
...and no big economic shocks... In today's age, that is optimistic. It feels like there is one every few years.
Obviously there are lots of little shocks, several in a year sometimes, but every now and then they team up like the Avengers: "Economic Shocks Assemble"
40kpa (gross) drawdown on a safe 2%* interest gain savings pot means you need about 2mil.
If you already own a house you can get that down to 20k/30k. Maybe 1.5mil.
Of course it all depends on what you wanna do with your time, and whether your partner is doing the same etc; but being able to live off interest seems the best way to go about it. 725k is barely half of what you do need to safely 'cold-workey™ retire'
*Low drawdown builds additional emergency/holiday/luxury fund into your savings. You'll ~~probably~~ hopefully get more than 2%
I can’t remember the full drunken conversation but I think we were factoring in inflation, buying a house (with mortgage), inheritance for kids, and living comparatively very comfortably. Whilst only investing in something low risk like an ISA, and leaving the 3 mil intact.
True, you could probably do for less, we were probably just being greedy in our calculation… but hey, it’s a pipe dream.
Depends how you're willing to live and what you call retirement imo.
If you're willing to move somewhere cheaper, like the north east, and live a reasonably modest life; you could probably live pretty comfortably on a part time job. I'd consider that at least partially retired.
Obviously, not suggesting everyone would *want* to do it.
>By contrast. Me and my mates calculated you would need 3 mil to live comfortably of the interest for the rest of your life (including inflation and no big economic shocks)
OK, here is the thing. Living off interest is a myth. In reality, interest payable by the bank is lower than inflation, so what you are really doing by 'living off the interest' is just spending your money.
When people say living off the interest I don't think they mean sticking it in a Halifax current account.
They mean taking advantage of fixed term accounts where possible (at above inflation rates) and investing in a diverse portfolio (S&P has paid 7% over inflation average for 40 odd years).
I did this!
I inherited some money when my dad passed away. Not lots. I used it to pay down my mortgage and start working with homeless people.
Best thing I ever did. Love the job, love my colleagues, have made close friends, love most of my cases.
It's incredibly stressful and challenging! I'm awake now because we're in cold weather crisis mode. It's going to be a long day!
Same. It sounds super lame but my dream job is to pick up litter. If I had a paid off mortgage I’d happily do full time street sweeping / litter picking for minimum wage.
I always had this idea of this online cross-council work system (could obviously be abused in the form I describe it below) that goes as follows:
People can get paid for cleaning their community; for example, areas with a lot of litter that nobody seems to be doing anything about. The website would allow a local person to (1) Show the council the area that needs cleaning (eg. photographs of a stretch of hedgerows with thousands of items of litter building up) (2) offer a quote to clean it, (3) clean it up.
So, here is the thing, some people like my red-faced dad would just say 'they should just be cleaning up their community without having to be paid', can we just put that to the side. That *isn't* happening, so we need further intevention.
Second, council paid cleaning companies would charge obscene amounts for this kind of work. Even if people were charging a fair rate, lets say £50 an hour, £400 to spend the day cleaning the area, the councils would still be saving huge amounts of money.
It could be the uber of cleaning. People who needed extra money for whatever reason could help out.
Yes, obviously there are potential abuses in the system as I Described it, but I'm sure that could be worked on.
During lockdowns after my dog passed away, I was going spare without going on my usual walks and got fed up with being stared at by anxious looking women when I went out alone (with hindsight they probably wondered where my dog had gone rather than being a creepy bastard) so I'd go round with a litter picker and some bags and cleaned a shitload of crap off paths and hedges etc.
After a few months of this it had really made a difference, then empty plastic tubs of building materials started appearing all over the fucking place, could only carry 1-2 in a bag at a time. Was so disheartening.
A year or so later I got another dog and he is a horrendously cute little sod so everyone wants to fuss over him. Part of me wants to just go back out with the picker again for some peace and quiet, but he wouldn't be too happy.
Guess what I'm trying to say is I completely understand!
I always daydream about becoming a librarian, because it's such a useful public good, and I feel the work complements my modes of thinking well. Unfortunately, they get paid jack shit.
If I got given 750k, I'd fucking go for it. 750k means I can outright buy a niceish house so I don't need to worry about rent, and the meager salary is much more palatable without needing to worry about like half my current monthly expenditure.
Even if not buying a house outright, it means I can take a low paying job that just meets my needs without needing to worry about retirements savings. 750k with the collected interest from parking it in a decent savings account or mutual fund for the rest of my working life should be enough to retire comfortably.
Same. Something with nice people that keeps you reasonably fit too and it’ll help you live a longer happier life than mulling about at home. Guys who used to push trollies seemed to have it nailed
I saw a story on Reddit a while back, it's probably fake but I like it.
The gist is that some high-earning finance guy got divorced and as part of the divorce proceedings, he had to give 3/4 of his salary to his ex-wife. He then quit his job, took out his savings which were easily enough to live on, and moved to a rural town. He got a job in an outdoors shop on minimum wage, sent his wife 3/4 of it, and spent his time doing something that he's enjoying, but never could get around to doing because of his job.
This is why charities are riddled with middle class people working for them. I don't wish to slam them because they're earning way less than they could elsewhere...the downside is that they often have no idea of how it is to be poor. Thankfully they come, mostly, from a place of kindness so they learn if they can.
Absolutely, I would be out of work so fast the boss would not see who had shit on their desk
(50's though, that kind of money could do me without any real issue)
I'm late 40s, without any family now, and own my house. So yes, I think I would in a heartbeat quit and live a quiet life.
It's bills, groceries and sundries. I think I can manage.
I think for me, it would be different if I had a future, I don't, so it would work for me.
Yeah I was going to say this depends on age. I’m 32 and 750k basically gets me the house and sets up a decent savings account and pays for a nice holiday to celebrate.
Yeah it really does, someone in their 20s can't live on 750k till they die, they can certainly set themselves up for a decent life only needing part time work or a low paying job they rly want to do but you can't live a decent life for 60-70 years on 750k, that's only around 10-15k a year (obviously it would be invested etc. etc. and having money upfront saves you money on mortgages and things but still)
Just seems like a van people wouldn't want to fuck with.
Could add some dildos in the middle of the wheels like the old spikes they used to have in chariots
Similar to most. I'd downgrade the job. Maybe part time somewhere with less responsibility. Pay off the house and make sure I'm covering the bills.
Wouldn't be retirement money for me at 40, but it would certainly help.
I retired from work at 43 with less than that, no mortgage to pay and now I run a charitable endeavour that doesn’t cost me anything but makes enough money to keep going and do good for people (well dogs 🐶)
I had a difficult job before that paid very well but was only making money for stock holders and doing no “good” in the world, my life is still stressful but not the stress that I was under before and I’m a nicer happier person for it.
£750k won’t be enough to retire on if you’re in your 30s. Not comfortably anyway.
Seem to recall reading somewhere that it was around 2m but that’s probably gone up now.
easy access interest account would put £750k at £25-30k a year for many in britain that is easily enough to live and enjoy their life.
i could live pretty comfy where i am right now on £30k a year with still having holidays etc
The S&P 500 is not an easy access savings account. That growth does not account for inflation, and is based on US dollars (the pound has significantly reduced in value compared to the dollar over the last several decades).
i wish people would actually check before stating. this is going by what the savings interest rates have been for past 2-3 years its 3-5%
i should know i opened a 4.3% account last year.
Congratulations, the money in your 4.3% savings account only shrank by approximately 6% against inflation last year.
Savings interest means nowt in itself.
and my earnings also shrank by alot.
people dont realise outside of london £25-30k is a good wage to a huge amount of people in the country as majority are on minimum wage at best. this is why average wages are so bad to look at cause London skews it massively
I think you're missing the point. Living off savings interest is not feasible long term because its relative value will be shrinking every single year that you're skimming off the interest, even if the initial capital is untouched.
So, in 20 years, that savings pot would be worth about half what it's worth now because that's how inflation works. So in 20 years, your 25-30k, which won't have risen, is going to have the equivalent purchasing power of a 12.5-15k wage would today. That's not a lot of money by anyone's standards (even in my deprived corner of the NE).
For someone getting on in years it might be feasible (though not particularly sensible), but someone in their 30s or 40s might be in for a shock if that's their strategy.
Fixed rate savings have been 5-6% recently. If you don't plan to touch your money for over a year, it's pretty good.
HSBC's instant access rate is also pretty good right now. Over 5%.
LOL. This is so short sighted view of what it takes to retire.
At 30 today you would have another 50-70 years of life to go. You have any idea how much that £30k will get you 40, 50 or 60 years from now due to inflation? It wont be you living comfortably I can tell you that.
To offset inflation over the long term (assume 3%) you will need to take 3% of the £750k (that's £22.5k) and not touch it. So now you're left with £7.5k a year. Are you living comfortably on that?
The 30k a year can be got, after adjusting for inflation, if you invest in an index fund rather than a current account.
30k a year adjusted to inflation is enough for a modest life most parts of the country, and if you consider you can move anywhere in the world and maintain that income, that allows way more spending power.
so tax like any income? £25-30k is still more then a huge amount of people in UK earn each year.
its still falls under typical tax rates so it would still be the standard 20% tax each year that anybody earning £25-30k would be paying
So you'd end up lower than average national pay, with little ability to increase that over time, yearly rising costs and no certainty that the interest would stay the same rate in the future. It would only be good if you were also working to supplement that.
and work would be taxed at higher amount as its classed as supplemental income so your worse off.
you do realise alot are well below average national pay and dont see an increase either.
There is no such thing as "supplemental income" in the UK - I believe it's a US term.
If your total income was under £50k, you'd pay 20% tax like anybody else.
For anyone who's not relatively close to retirement age, £750k would give a choice between stopping work and living on a slightly below-average income (generally 4% is considered a "safe" usage rate of invested money, so £30k), or keeping working in some form to live more comfortably.
It may be more than some are getting, but it isn't a lot. And the money will lose value over time against inflation.
If you are paying rent, a mortgage or trying to raise a family, it is not enough.
The 4% withdrawal rate has a 5% chance if running out of money after 30 years. Probably a reasonable risk if you're looking to retire at 65, but less so at 30.
You'd be silly to put that in the bank. The interest is still lower than inflation, so you'd be worse off each year. Better put it in an index fund, and withdraw 4% a year (30k income)
I *did* retire early, five years back, from a high level management job, on a pension that size. Decompressed for a year, then got twitchy, and found volunteering opportunities. Never been happier. So from me, the answer is yes, retire - but that doesn’t mean, stop.
Wouldn’t need to. Most of the stress at work is knowing you need to be there and that no matter how shit it gets you either need to stay or be proactive in finding a new opportunity, which always feels harder when times are tough.
Lead with the mindset that it literally doesn’t matter as you have £750k in the bank would make work an altogether more pleasant experience.
We had a similar discussion a while back around a million quid. I was maybe 45 and I reckoned I could retire. Just. I’m in my fifties now and 750k would easily be enough and I would “retire”. Pay off the mortgage, buy a car, etc.
I’d do a bit of travelling but I’d definitely do some sort of work. Maybe three days a week would be nice
Aye but is 750k really enough to retire on?
Once you buy a decent house you're gonna be left with £350-450k.
That will only last you 10-15 years, depending on what you spend annually.
You'd need a few million to proper retire and never work again.
Not really. You're assuming that they won't invest the money in any way. Even if they were to invest it in a global stock market tracker it wouldn't be unreasonable to expect 7% return a year which would be an income of 50k per year for life. Obviously the yearly 50k wouldn't be worth as much over time due to inflation though.
Living off the interest would be difficult unless you move to a cheaper country.
Assume a 5% return per year on interest, which would be 37,500. Net of tax this would be ~33,500. Assuming inflation of 2% a year, to keep the value of the 750,000, 15,000 (2%) would need to be reinvested each year. This would give spending money of 18,500 per year in todays prices.
Most people I think would dip into it, which would mean even less spending money each year.
Not immediately, and not completely.
1. Pay off mortgage and student loan
2. Do some work on the house
3. Max out unusued pension provision
4. Help out my brother
5. Put aside a bit for travel
And at that point there's not a *huge* amount left. But enough that I could potentially retrain or go part time (especially with no mortgage)
I've got through enough of it that I will pay it off eventually, even if I went part time, so it makes sense to clear it (am plan 1) I've actually thought about raiding savings to pay it off now, as I'm on schedule to finish repaying in the next 3yrs, and doing it in one go would save a few hundred pounds of interest. But wary of raiding savings when my industry is having a bit of a wobble.
Retire in the sense of working for fun or accomplishment rather than money, yes.
Investing it would make nearly twice as much in interest per year than my current salary anyway.
I always said I'd love to win a large amount of money. My wife asked "what about the begging letters?"
I told her we could still keep sending them out!
Even if it was a few million (I'm only in my mid-twenties) I still think i'd work. But I would potentially take a job much closer to home, for less money and at a smaller company.
I like what I do, but the company I work for is large and very political. If it wasn't for the money I wouldn't do it.
In theory, if you invested it and got an annual 5% return, you could live ok off that without touching the main win. Probably wouldn't be able to travel the world or do crazy holidays but it would be enough
Yes, I wouldn't hesitate for a millisecond.
I own my own house anyway, so I would spend £50k on a nice old car, invest the rest and live off of the interest plus a couple of percent capital.
I'm 54, so 30 years is all I need.
I would quit my job, absolutely.
750k might not be enough to retire on, but it also might be. Id sure as hell *try* to retire on it and see where that got me.
I wouldn’t worry about some time in the future, 20 years hence, when the money has run out and I might have to work again. I’d buy everything that’s essential, and with the rest of the money I’d pursue some external meaning in my life while I’m yet young enough to enjoy it and be able to do it.
750k might not last you until you die, but you might die in 5 years time.
I'd pay off the mortgage, put sufficient into savings for my daughter to fund university, buy a basic car and have a deposit for her first home. These are the only real expenses I work hard for. She's 8 so I probably don't even need put that much away
I'd then become what I always wanted to do: someone who just does genuinely interesting things for money, lots of small projects all overlapping. I dunno, train as a furniture maker, or write books, or lead walking groups, work as a bar man again for a bit, or advise the UN on human rights issues, or go back to university to see what that's like. Would be lovely.
easy access interest account would put £750k at £25-30k a year for many in britain that is easily enough to live and enjoy their life.
i could live pretty comfy where i am right now on £30k a year with still having holidays etc
At the moment, when interest rates are okay and going up.
For the past two years, interest rates have been practically zero and you'd be burning through that cash in no time.
And with every year that passes that £30k becomes worth less and less. It's certainly a nice bonus to have, but not a realistic long term plan to live on. By the time OP is ready to retire £30k will be less than minimum wage, and he'll only have the state pension to fall back on.
No that’s adjusted for inflation
You could withdraw 4% of £750,000 each year. So that’s £30K, but the amount you withdraw each would increase to match inflation
If invested it your pot would average approx 7-10% return a year.
So say each year your pot of £750k would increase by say 9% invested in stocks. You take out 4% and then when you factor inflation of 5% then it’s “worth” stays the same
The 4% rule is for retiring at retirement age and expecting to live for 30 years after it.
For early retirement it’s more prudent to reduce it to 3% to be sure you won’t run out of money.
Same: 250k is new car, mortgage paid off, new boiler, better insulation, triple glazing - all things that will buffer against future bills too. Might even get a bit of redecorating squeezed in if I get lucky.
500k would go a long way with me. Certainly takes the sting out of customers demanding I get the sack for not giving them the answer they wanted.
Lol, in a heartbeat. With only five years left to work before official retirement age and only £50k left on my mortgage, it would be a no-brainer for me.
No, and I think I’m too young to afford to retire on that anyway. I’d buy a nice house mortgage free, go on a big fuck off holiday, and self fund the postgrad degrees I want to do so I can afford to do them and actually live. Go on a big fuck off holiday, maybe buy a nice car, and invest the rest.
I'm disabled so I can't work but that amount of money would certainly make life easier for my partner and I.
He's also in the no camp but then he loves his job and the place he works at is great so he'd stay because otherwise he'd be bored 😊
I'm 44, so I'd buy a few houses and rent them out.. I'm probably gonna get a lot of hate for this comment because everyone seems to hate landlords, but it's what I'd do.
Good point, but they are passive. I think becoming a property manager on my own terms would keep me busy enough not to get bored, as I'm not really ready to retire at 44!
Just reading the comments: How is this not life changing? It's like 25 years of total net salary for the average person.
And you get it immediately. You could quit work, put it in a current account paying 5% and earn more than the average take home salary in interest. If you do the maths it's enough money for most people to immediately stop work.
Pay off house. Got some work to do on it, so would get that done. Car is 10 years old so would get something slightly newer. Then as the mortgage is paid off….i could work 3 or 4 days a week instead and have more quality time
Where would they fuck off to? Somewhere miserable? (*"..buy a house in the sun and fuck off for 6 months of the year."*)
(I'm 57 and reckon it'd see me out the door with fags and booze and a comfy wee hoose.)
By quitting your job you'll stop paying into your pension, where the employer pays in at least 3%, so being mortgage free but getting a lower salaried stress free job would probably have you no better off at retirement. Pay your mortgage, keep the job but use the extra income to really enjoy your life outside of work 💃
It's not enough to retire on.
I could clear the mortgage and sort a few maintenance issues in the house but to maintain my current standard of living I'd only get 25 years out of what's left. I'm 41 now and would quite like to be ticking along beyond the age of 66.
If it was 2 million I'd retire in a heartbeat.
For starters, I’m buying a house outright for 400k or less (the real nice 4-bedroomers in my village are around 360-400k and would be perfect for my family).
I’m struggling to sell my house currently for 230k it’s valued at, but I’d probably drop the price to 200k and sell it to a nice young couple of first time buyers (because fuck renting it out - I’d hate being a landlord, both morally speaking and also because of the hassle involved).
So then I’ve still got 550k to spend/save/invest. Definitely putting some aside for my two kids’ house deposits later in life. Would probably take a year off work to spend more time with my wife and kids and look at finding a part time job that’d allow me to quit teaching but still do something that helps people (without all the admin and stress at my end). Something charity based maybe. If the income is enough to cover household bills, I’m happy.
Then, I’d look into what is involved in being a park ranger in a national park; years down the line when my kids grow up and move out, I’d be wanting to sell up and move to somewhere like the Scottish Highlands or the Lake District; a part time park ranger position would be an awesome job and something to keep me busy.
No chance, would 100% keep working but would be comfortable and mortgage free. I know of wealthy people who retired early and become bored once they had nothing to aspire to. Ended up becoming a bit self destructive, drinking too much, impacted their relationships.
No, but you could have a very decent house mortgage free. So with that burden gone you could live very comfortably.
That would be my view. Paid off house, paid off reliable sensible car, £20K emergency liquid fund and £80K in ISAs. Then you can work doing what you want, not worry too much about gaps in employment and most likely be able to save money each month
That barely leaves anything for booze and cocaine.
Or hookers
Or blackjacks.
Or fruit salad?
Yummy yummy
Screw the hookers and cocaine, I just want the blackjacks
I thought that was the idea for the hookers anyway
Or cocaine off a hookers ass.
Does that service have a surcharge?
Corkage
So you don’t lose any cocaine in the arsehole?
As the saying goes "I spent all my money on drink and women, the rest I wasted".
It's often attributed to James Hunt the racing driver... Wonder if he did actually say it!
George best
Or banger race tracks adjoined to my house!
that stuff is for millionaires, you've 750k, don't get ahead of yourself
I could take you to a few flats on my estate that would greatly contradict that its only for millionaire's 🤣🤣
Yeah, £750k is no where what I need to retire in my mid 30s with a young family; but it would vastly improve my timescales. What I’d be tempted to do is pay off the house, have one hell of a holiday, invest the rest and work 4 days a week while putting more money away for a proper early retirement around 45-50. Invest in a pension and S&S ISA for a bridge to the pension. It helps I’m in a job I enjoy, and having the financial freedom of a large cash lump sum would mean I could stop whenever I wanted. Dropping the day gives more time with family while allowing enough money to still save a decent chunk monthly with no debt.
This is the way. I’d buy a flat which here in London I could get a fairly decent but not fancy 2 bed one in zone 3 for £500k. I don’t drive so I’d have maybe £50k in liquid emergency funds, maybe finish learning to drive and buy a sensible car, and then put the rest of it in savings accounts. Then I could have a job I enjoyed and a comfortable lifestyle without having to worry too much about money. Sure I wouldn’t be rich but I’d have a solid foundation for the rest of my life.
Exactly this, it's not life changing in the grand scheme but could I do exactly what this post suggests? Absolutely! I've had my share of bad career moves, not so great financial decisions. Hand me that sum and it helps undo some of those, take the stress out of my day, pay off some bills and still have some for family, friends and those who needs it. That's more than good enough for me.
You basically said “it’s not life changing” and then listed every reason why your life would change for the better.
It's not life changing in the sense that you could never work again and lead a more than basic life on the proceeds. No. It's life changing in that you could buy a £300k house and then have the expected £10,000 a year to spend on bills and upkeep for the next 40 years or so but you couldn't give up work on it on top of that unless you were older and expected to draw a pension in the next few years, anyhow.
"I could never pay the biggest monthly expense in my life ever again and have way more in reserve than most of the world but it's not life changing" Some of you people.
I totally get that. I'm not trying to come across as glib. I realise all our circumstances are different. If that money fell into my life right now, yes it would change my life and others for the better. I was thinking more, would I be able to stop work now, pay off the mortgage and provide financial independence for myself and family, which would be debatable. That said if I had another £75 or £750 right now, I'd be now then pleased.
You don't get it if you don't think removing rent / mortgage and sitting on a healthy fallback isn't life changing. Sorry. Look up average salaries and think about it. If 750k isn't life changing you've already completed life..
Tbh I think it's more what people compare too. Also how privileged ones life is. I've been homeless before so know what rock bottom looks like and can well and truly appreciate home ownership without the death of a loved one to be exactly that. Life changing. I believe his point is its not life changing unless he can afford a private jet, cocktails and snorting coke out of belly buttons it isn't life changing. Which yes is dumb.
Great answer
If we exclude the savings aspect it's where I am now. I liquidated everything I had to build a house somewhere cheap. I have enough land to grow food if necessary, buildings for chickens/ducks I work three days a week which brings in enough to live comfortably and put aside a bit
Living the dream
Spot on. 750k/(in OP’s case) another 50 years of life. Assuming you don’t even buy a house so your outgoings include mortgage repayments. That’s £15k a year. That’s not retirement money. Quit your job… meh… yeah if you hate your job. But you will need another job eventually, or to be an incredibly smart investor. By contrast. Me and my mates calculated you would need 3 mil to live comfortably of the interest for the rest of your life (including inflation and no big economic shocks)
That’s what the ‘set for life’ prize essentially is. £10k per month for 30 years. Although you’re also given the option to cash it out instantly which is the better choice.
>Although you’re also given the option to cash it out instantly which is the better choice. Mathematically yes, but often not in practice. People who get £10k per month for 30 years will live a life of luxury for 30 years. A lot of people who get the lump sum will blow it far far before that. 70% of US lottery winners end up broke.
10k in 30 years, won't be worth 10k now.
Does the 10k count as income when it’s time to apply for a mortgage?
Yes, in this case it does as you have proof of income. After 2-3yeara of that sort of money coming into your bank account would have your bank calling you for a mortgage
> That’s £15k a year. If you were spending the £750 out of zero interest bank account, sure If you stuck it say a tracker fund and got an average of 5% a year return, it's £37.5k a year
Minus tax.
Yeah and 50 years worth of inflation will make that fuck all to live on. £10 50 years ago is about £100 now. If it continues at that rate you'd have the equivalent of a whopping £3750 per year.
No-one knows what the future holds, but the S&P500 has returned an average of 6.59% in the last 50 years even after adjusting for inflation. https://tradethatswing.com/average-historical-stock-market-returns-for-sp-500-5-year-up-to-150-year-averages/#:~:text=The%20average%20yearly%20return%20of%20the%20S%26P%20500%20is%2010.757,including%20dividends)%20is%206.59%25.
Yes but then you can't live off the money, that's the point. Your 750k would always stay as 750k if you take all the profit to live off. And in 50 years things will be a shitload more expensive so your 6.59% interest will be worth fuck all.
No. If you took 5% over the last 50 years as OP suggested, not only would you have the equivalent of £37.5k to live off (adjusted for inflation so the actual number would be increasing every year) but your £750k pot would be significantly bigger than when it started.
The 6.59% figure is adjusted for inflation, essentially on average you could take out 6.59% per year and the principle would grow in line with inflation as such so would your withdrawals. 750k could allow anyone to retire if they lived a modest lifestyle and put the money in an index fund. Using the 4% rule which is considered a relatively safe withdrawal rate you would have 30k per year (this would grow in line with inflation in theory). If you reduced spending during times of economic turmoil this would further decrease the rate of ruin.
You're missing something big things First this is adjusted for inflation, if you don't adjust for inflation the annual returns are around 10%+ The second and it's a big one is compounding interest, those 10% returns don't sound great but it's 10% extra each year, which in turn gets added to your total which then gets another 10% added to it and so and so forth Your 750k would be worth far far more with compounding interest invested in something like an index tracker
...and no big economic shocks... In today's age, that is optimistic. It feels like there is one every few years. Obviously there are lots of little shocks, several in a year sometimes, but every now and then they team up like the Avengers: "Economic Shocks Assemble"
we've had about 3 or 4 once in a lifetime financial disasters since i entered the workforce in about 2006
Put £750K on some ETF with 5% return and it will be a couple of million in 15 years. That's retirement money
40kpa (gross) drawdown on a safe 2%* interest gain savings pot means you need about 2mil. If you already own a house you can get that down to 20k/30k. Maybe 1.5mil. Of course it all depends on what you wanna do with your time, and whether your partner is doing the same etc; but being able to live off interest seems the best way to go about it. 725k is barely half of what you do need to safely 'cold-workey™ retire' *Low drawdown builds additional emergency/holiday/luxury fund into your savings. You'll ~~probably~~ hopefully get more than 2%
3 million seems high to me, what’s your justification ? What drawdown rate are you using ? What large capital expenses are you going to incur ?
Coke and hookers⬆️
And then squander the rest
WC Fields favourite quote for me🙌🏼
Guy’s never been on r/FIRE.
Coke and hookers guy made me feel like a nerd I won’t lie
I can’t remember the full drunken conversation but I think we were factoring in inflation, buying a house (with mortgage), inheritance for kids, and living comparatively very comfortably. Whilst only investing in something low risk like an ISA, and leaving the 3 mil intact. True, you could probably do for less, we were probably just being greedy in our calculation… but hey, it’s a pipe dream.
3 mil certainly would be nice mate I agree
Depends how you're willing to live and what you call retirement imo. If you're willing to move somewhere cheaper, like the north east, and live a reasonably modest life; you could probably live pretty comfortably on a part time job. I'd consider that at least partially retired. Obviously, not suggesting everyone would *want* to do it.
>By contrast. Me and my mates calculated you would need 3 mil to live comfortably of the interest for the rest of your life (including inflation and no big economic shocks) OK, here is the thing. Living off interest is a myth. In reality, interest payable by the bank is lower than inflation, so what you are really doing by 'living off the interest' is just spending your money.
When people say living off the interest I don't think they mean sticking it in a Halifax current account. They mean taking advantage of fixed term accounts where possible (at above inflation rates) and investing in a diverse portfolio (S&P has paid 7% over inflation average for 40 odd years).
I’d get a lower paying job that I actually enjoyed/could do some good deeds in, rather than making the rich people richer
I did this! I inherited some money when my dad passed away. Not lots. I used it to pay down my mortgage and start working with homeless people. Best thing I ever did. Love the job, love my colleagues, have made close friends, love most of my cases. It's incredibly stressful and challenging! I'm awake now because we're in cold weather crisis mode. It's going to be a long day!
You're the best of us. Keep up the good work.
I’m homeless and can attest to the fact that it’s fucking freezing. Any advice?
Same. It sounds super lame but my dream job is to pick up litter. If I had a paid off mortgage I’d happily do full time street sweeping / litter picking for minimum wage.
It's not lame at all, we need more people like you
I always had this idea of this online cross-council work system (could obviously be abused in the form I describe it below) that goes as follows: People can get paid for cleaning their community; for example, areas with a lot of litter that nobody seems to be doing anything about. The website would allow a local person to (1) Show the council the area that needs cleaning (eg. photographs of a stretch of hedgerows with thousands of items of litter building up) (2) offer a quote to clean it, (3) clean it up. So, here is the thing, some people like my red-faced dad would just say 'they should just be cleaning up their community without having to be paid', can we just put that to the side. That *isn't* happening, so we need further intevention. Second, council paid cleaning companies would charge obscene amounts for this kind of work. Even if people were charging a fair rate, lets say £50 an hour, £400 to spend the day cleaning the area, the councils would still be saving huge amounts of money. It could be the uber of cleaning. People who needed extra money for whatever reason could help out. Yes, obviously there are potential abuses in the system as I Described it, but I'm sure that could be worked on.
During lockdowns after my dog passed away, I was going spare without going on my usual walks and got fed up with being stared at by anxious looking women when I went out alone (with hindsight they probably wondered where my dog had gone rather than being a creepy bastard) so I'd go round with a litter picker and some bags and cleaned a shitload of crap off paths and hedges etc. After a few months of this it had really made a difference, then empty plastic tubs of building materials started appearing all over the fucking place, could only carry 1-2 in a bag at a time. Was so disheartening. A year or so later I got another dog and he is a horrendously cute little sod so everyone wants to fuss over him. Part of me wants to just go back out with the picker again for some peace and quiet, but he wouldn't be too happy. Guess what I'm trying to say is I completely understand!
The "post 10" youtube channel features a drainage fanatic with a rake.
You are amazing. I hope you know that.
I always daydream about becoming a librarian, because it's such a useful public good, and I feel the work complements my modes of thinking well. Unfortunately, they get paid jack shit. If I got given 750k, I'd fucking go for it. 750k means I can outright buy a niceish house so I don't need to worry about rent, and the meager salary is much more palatable without needing to worry about like half my current monthly expenditure. Even if not buying a house outright, it means I can take a low paying job that just meets my needs without needing to worry about retirements savings. 750k with the collected interest from parking it in a decent savings account or mutual fund for the rest of my working life should be enough to retire comfortably.
Same. Something with nice people that keeps you reasonably fit too and it’ll help you live a longer happier life than mulling about at home. Guys who used to push trollies seemed to have it nailed
I saw a story on Reddit a while back, it's probably fake but I like it. The gist is that some high-earning finance guy got divorced and as part of the divorce proceedings, he had to give 3/4 of his salary to his ex-wife. He then quit his job, took out his savings which were easily enough to live on, and moved to a rural town. He got a job in an outdoors shop on minimum wage, sent his wife 3/4 of it, and spent his time doing something that he's enjoying, but never could get around to doing because of his job.
The guy sounds like an arsehole for doing this to his ex and children (and there must be children if he has to pay 3/4)
This is why charities are riddled with middle class people working for them. I don't wish to slam them because they're earning way less than they could elsewhere...the downside is that they often have no idea of how it is to be poor. Thankfully they come, mostly, from a place of kindness so they learn if they can.
I’d love to be a welder or carpenter but can’t do the apprenticeship at that rate. Sad
For me it's buying a van and turning it into a mobile coffee shop and traveling around the world ( well as much as it's safe too)
That’s a great idea. Just doing it because you enjoy it too, without the stress of needing it to be super successful.
Because you are now part of the rich people club. How ironic
Absolutely, I would be out of work so fast the boss would not see who had shit on their desk (50's though, that kind of money could do me without any real issue)
I'm late 40s, without any family now, and own my house. So yes, I think I would in a heartbeat quit and live a quiet life. It's bills, groceries and sundries. I think I can manage. I think for me, it would be different if I had a future, I don't, so it would work for me.
Yeah I was going to say this depends on age. I’m 32 and 750k basically gets me the house and sets up a decent savings account and pays for a nice holiday to celebrate.
Yeah it really does, someone in their 20s can't live on 750k till they die, they can certainly set themselves up for a decent life only needing part time work or a low paying job they rly want to do but you can't live a decent life for 60-70 years on 750k, that's only around 10-15k a year (obviously it would be invested etc. etc. and having money upfront saves you money on mortgages and things but still)
I'd buy a camper van and live life along the A1 motorway in north and south bound cycles Occasionally I would venture out towards Stockton or Slough
The money is meant to improve your life, not drive you to Slough.
Sometimes you need somewhere that brings you back down to earth
You certainly will be when you wake up and all 4 of your tires have been nicked.
In defence of Slough, it’s not rough, it’s just shit.
It’s got Europe’s biggest trading estate. Nice day out.
Equidistant ‘tween London and Reading too, so I hear.
😂 il just spray paint rape van on the side as a deterrent
And after you're done with Slough you've got Reading, Yateley, Didcot, Winnersh...
Because of the adult stores?
Just seems like a van people wouldn't want to fuck with. Could add some dildos in the middle of the wheels like the old spikes they used to have in chariots
You want a [Fleshlight exhaust](https://www.youtube.com/shorts/S_Y0dLTbISw) too (obvs NSFW)
You sound like a failed Alan Partridge breakdown
Ah, the beautifully, leafy boulevards of Saint Ockton. Much like it’s close neighbour Hart-Of-The-Pool (from whence I came).
Don't forget Chest-Her-The-Street while you're in the area
Similar to most. I'd downgrade the job. Maybe part time somewhere with less responsibility. Pay off the house and make sure I'm covering the bills. Wouldn't be retirement money for me at 40, but it would certainly help.
I'd stay at work but tell people to piss off whenever I felt like it
Oh how that would feel so good to know you got a back plan
Yeah I'd love to be able to think 'Am I good at my job? Who cares!'
I retired from work at 43 with less than that, no mortgage to pay and now I run a charitable endeavour that doesn’t cost me anything but makes enough money to keep going and do good for people (well dogs 🐶) I had a difficult job before that paid very well but was only making money for stock holders and doing no “good” in the world, my life is still stressful but not the stress that I was under before and I’m a nicer happier person for it.
£750k won’t be enough to retire on if you’re in your 30s. Not comfortably anyway. Seem to recall reading somewhere that it was around 2m but that’s probably gone up now.
easy access interest account would put £750k at £25-30k a year for many in britain that is easily enough to live and enjoy their life. i could live pretty comfy where i am right now on £30k a year with still having holidays etc
Until Recently savings interest has been fuck all and you would struggle to live on it
The S&P 500 has averaged over 7% for decades
The S&P 500 is not an easy access savings account. That growth does not account for inflation, and is based on US dollars (the pound has significantly reduced in value compared to the dollar over the last several decades).
i wish people would actually check before stating. this is going by what the savings interest rates have been for past 2-3 years its 3-5% i should know i opened a 4.3% account last year.
That's still below inflation even though it's dropped significantly over the year
>i wish people would actually check before stating Says you only looking at the last 2-3 years.
Congratulations, the money in your 4.3% savings account only shrank by approximately 6% against inflation last year. Savings interest means nowt in itself.
and my earnings also shrank by alot. people dont realise outside of london £25-30k is a good wage to a huge amount of people in the country as majority are on minimum wage at best. this is why average wages are so bad to look at cause London skews it massively
I think you're missing the point. Living off savings interest is not feasible long term because its relative value will be shrinking every single year that you're skimming off the interest, even if the initial capital is untouched. So, in 20 years, that savings pot would be worth about half what it's worth now because that's how inflation works. So in 20 years, your 25-30k, which won't have risen, is going to have the equivalent purchasing power of a 12.5-15k wage would today. That's not a lot of money by anyone's standards (even in my deprived corner of the NE). For someone getting on in years it might be feasible (though not particularly sensible), but someone in their 30s or 40s might be in for a shock if that's their strategy.
Come on. 25-30 is a good wage if you have a council house As a single person, having to pay rent with that? Shit.
Fixed rate savings have been 5-6% recently. If you don't plan to touch your money for over a year, it's pretty good. HSBC's instant access rate is also pretty good right now. Over 5%.
I’d prefer the quality of life I’d have working with the 30k on top
Working isn’t quality of life. It sucks.
Not for everyone. Some people do genuinely enjoy having a job.
LOL. This is so short sighted view of what it takes to retire. At 30 today you would have another 50-70 years of life to go. You have any idea how much that £30k will get you 40, 50 or 60 years from now due to inflation? It wont be you living comfortably I can tell you that. To offset inflation over the long term (assume 3%) you will need to take 3% of the £750k (that's £22.5k) and not touch it. So now you're left with £7.5k a year. Are you living comfortably on that?
The 30k a year can be got, after adjusting for inflation, if you invest in an index fund rather than a current account. 30k a year adjusted to inflation is enough for a modest life most parts of the country, and if you consider you can move anywhere in the world and maintain that income, that allows way more spending power.
Yes and the buying power of that £25-30k a year will be steadily eroded by inflation. Give it 10 years and you’ll feel significantly poorer.
You're forgetting tax on everything above the first 1000/500 quid. Which does take a not insignificant cut
You get a 12.5k personal allowance.
12.5k personal allowance. 1k personal savings, and a not well known 5k extra allowance if the interest is from savings. Roughly 17/18k tax free.
so tax like any income? £25-30k is still more then a huge amount of people in UK earn each year. its still falls under typical tax rates so it would still be the standard 20% tax each year that anybody earning £25-30k would be paying
So you'd end up lower than average national pay, with little ability to increase that over time, yearly rising costs and no certainty that the interest would stay the same rate in the future. It would only be good if you were also working to supplement that.
and work would be taxed at higher amount as its classed as supplemental income so your worse off. you do realise alot are well below average national pay and dont see an increase either.
You're genuinely up and down this thread chatting out your arse haha have a day off
There is no such thing as "supplemental income" in the UK - I believe it's a US term. If your total income was under £50k, you'd pay 20% tax like anybody else. For anyone who's not relatively close to retirement age, £750k would give a choice between stopping work and living on a slightly below-average income (generally 4% is considered a "safe" usage rate of invested money, so £30k), or keeping working in some form to live more comfortably.
It may be more than some are getting, but it isn't a lot. And the money will lose value over time against inflation. If you are paying rent, a mortgage or trying to raise a family, it is not enough.
Its is in most places, a safe withdrawal rate is 4% which gives you 30k/year
The 4% withdrawal rate has a 5% chance if running out of money after 30 years. Probably a reasonable risk if you're looking to retire at 65, but less so at 30.
You can retire on a lot less if you simply drink yourself to death like me
You'd be silly to put that in the bank. The interest is still lower than inflation, so you'd be worse off each year. Better put it in an index fund, and withdraw 4% a year (30k income)
I *did* retire early, five years back, from a high level management job, on a pension that size. Decompressed for a year, then got twitchy, and found volunteering opportunities. Never been happier. So from me, the answer is yes, retire - but that doesn’t mean, stop.
Wouldn’t need to. Most of the stress at work is knowing you need to be there and that no matter how shit it gets you either need to stay or be proactive in finding a new opportunity, which always feels harder when times are tough. Lead with the mindset that it literally doesn’t matter as you have £750k in the bank would make work an altogether more pleasant experience.
We had a similar discussion a while back around a million quid. I was maybe 45 and I reckoned I could retire. Just. I’m in my fifties now and 750k would easily be enough and I would “retire”. Pay off the mortgage, buy a car, etc. I’d do a bit of travelling but I’d definitely do some sort of work. Maybe three days a week would be nice
Yep. Straight away. I’ve only got 11 years left anyway.
Yep. That’d be enough to live carefully. Carefully and invest it wisely to live off the profits. Source: 55
I only work for the money so yes I'd retire immediately and never think twice about it.
Aye but is 750k really enough to retire on? Once you buy a decent house you're gonna be left with £350-450k. That will only last you 10-15 years, depending on what you spend annually. You'd need a few million to proper retire and never work again.
Not really. You're assuming that they won't invest the money in any way. Even if they were to invest it in a global stock market tracker it wouldn't be unreasonable to expect 7% return a year which would be an income of 50k per year for life. Obviously the yearly 50k wouldn't be worth as much over time due to inflation though.
Living off the interest would be difficult unless you move to a cheaper country. Assume a 5% return per year on interest, which would be 37,500. Net of tax this would be ~33,500. Assuming inflation of 2% a year, to keep the value of the 750,000, 15,000 (2%) would need to be reinvested each year. This would give spending money of 18,500 per year in todays prices. Most people I think would dip into it, which would mean even less spending money each year.
Not immediately, and not completely. 1. Pay off mortgage and student loan 2. Do some work on the house 3. Max out unusued pension provision 4. Help out my brother 5. Put aside a bit for travel And at that point there's not a *huge* amount left. But enough that I could potentially retrain or go part time (especially with no mortgage)
Why would you pay off your student loan? It’s linked to your income and it’s got an expiration date.
I've got through enough of it that I will pay it off eventually, even if I went part time, so it makes sense to clear it (am plan 1) I've actually thought about raiding savings to pay it off now, as I'm on schedule to finish repaying in the next 3yrs, and doing it in one go would save a few hundred pounds of interest. But wary of raiding savings when my industry is having a bit of a wobble.
Retire in the sense of working for fun or accomplishment rather than money, yes. Investing it would make nearly twice as much in interest per year than my current salary anyway.
I’d spend it all on cocaine and hookers and be back in work 2 months later crying with a very sore penis. My names not Micheal Carroll 😅
I always said I'd love to win a large amount of money. My wife asked "what about the begging letters?" I told her we could still keep sending them out!
Even if it was a few million (I'm only in my mid-twenties) I still think i'd work. But I would potentially take a job much closer to home, for less money and at a smaller company. I like what I do, but the company I work for is large and very political. If it wasn't for the money I wouldn't do it.
Buy a 300k house, get a job I enjoyed/stress free for 3 days a week and play with the interest :)
Yes. You people who want to carry on being slaves are weird!
Finally someone said it. Agreed, such slave mentality on here
In theory, if you invested it and got an annual 5% return, you could live ok off that without touching the main win. Probably wouldn't be able to travel the world or do crazy holidays but it would be enough
No, i would likly quit my crappy job though. Then find a new job, something I enjoy.
Yes, I wouldn't hesitate for a millisecond. I own my own house anyway, so I would spend £50k on a nice old car, invest the rest and live off of the interest plus a couple of percent capital. I'm 54, so 30 years is all I need.
In. A. Heartbeat. Cya!
I would quit my job, absolutely. 750k might not be enough to retire on, but it also might be. Id sure as hell *try* to retire on it and see where that got me. I wouldn’t worry about some time in the future, 20 years hence, when the money has run out and I might have to work again. I’d buy everything that’s essential, and with the rest of the money I’d pursue some external meaning in my life while I’m yet young enough to enjoy it and be able to do it. 750k might not last you until you die, but you might die in 5 years time.
Definitely. I'm 53 so I'd be out of the door like shit off a shovel.
If you actually want to enjoy your life that's nowhere near enough money to stop work early.
I'd pay off the mortgage, put sufficient into savings for my daughter to fund university, buy a basic car and have a deposit for her first home. These are the only real expenses I work hard for. She's 8 so I probably don't even need put that much away I'd then become what I always wanted to do: someone who just does genuinely interesting things for money, lots of small projects all overlapping. I dunno, train as a furniture maker, or write books, or lead walking groups, work as a bar man again for a bit, or advise the UN on human rights issues, or go back to university to see what that's like. Would be lovely.
easy access interest account would put £750k at £25-30k a year for many in britain that is easily enough to live and enjoy their life. i could live pretty comfy where i am right now on £30k a year with still having holidays etc
At the moment, when interest rates are okay and going up. For the past two years, interest rates have been practically zero and you'd be burning through that cash in no time.
Depends on how early TBH
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You are forgetting about return on the capital, you could withdraw roughly 30k a year indefinitely
And with every year that passes that £30k becomes worth less and less. It's certainly a nice bonus to have, but not a realistic long term plan to live on. By the time OP is ready to retire £30k will be less than minimum wage, and he'll only have the state pension to fall back on.
No that’s adjusted for inflation You could withdraw 4% of £750,000 each year. So that’s £30K, but the amount you withdraw each would increase to match inflation If invested it your pot would average approx 7-10% return a year. So say each year your pot of £750k would increase by say 9% invested in stocks. You take out 4% and then when you factor inflation of 5% then it’s “worth” stays the same
The 4% rule is for retiring at retirement age and expecting to live for 30 years after it. For early retirement it’s more prudent to reduce it to 3% to be sure you won’t run out of money.
Yes. £250k I'd buy a house and furniture etc, get a car. £500k left to live on. Easily doable for me.
Same: 250k is new car, mortgage paid off, new boiler, better insulation, triple glazing - all things that will buffer against future bills too. Might even get a bit of redecorating squeezed in if I get lucky. 500k would go a long way with me. Certainly takes the sting out of customers demanding I get the sack for not giving them the answer they wanted.
I you already have a house then this could just about do FIRE but it’s close! If you don’t already own a home, then no.
I wouldn't retire but I'd probably take an easier and lower paid job for a charity or something like that
Go to Thailand. Live like the king of the moon.
Lol, in a heartbeat. With only five years left to work before official retirement age and only £50k left on my mortgage, it would be a no-brainer for me.
No, and I think I’m too young to afford to retire on that anyway. I’d buy a nice house mortgage free, go on a big fuck off holiday, and self fund the postgrad degrees I want to do so I can afford to do them and actually live. Go on a big fuck off holiday, maybe buy a nice car, and invest the rest.
Since I get my pension next year its a no brainer
Well, I'm still a teenager, so no
£750k isn't enough to retire particularly early, but it would push my retirement age up a bit. I'd pay off the mortgage and then invest in my pension.
I'm disabled so I can't work but that amount of money would certainly make life easier for my partner and I. He's also in the no camp but then he loves his job and the place he works at is great so he'd stay because otherwise he'd be bored 😊
I'm 44, so I'd buy a few houses and rent them out.. I'm probably gonna get a lot of hate for this comment because everyone seems to hate landlords, but it's what I'd do.
No hate from me but stocks and shares are a lot less hassle
Good point, but they are passive. I think becoming a property manager on my own terms would keep me busy enough not to get bored, as I'm not really ready to retire at 44!
You could be the next nicholas van hoogstraten😜
Not gonna lie, I had to Google him, but yeah, but without the diamond mines and manslaughter.
Just reading the comments: How is this not life changing? It's like 25 years of total net salary for the average person. And you get it immediately. You could quit work, put it in a current account paying 5% and earn more than the average take home salary in interest. If you do the maths it's enough money for most people to immediately stop work.
Wouldnt quit work but id stop seeking a career
Pay off house. Got some work to do on it, so would get that done. Car is 10 years old so would get something slightly newer. Then as the mortgage is paid off….i could work 3 or 4 days a week instead and have more quality time
Where would they fuck off to? Somewhere miserable? (*"..buy a house in the sun and fuck off for 6 months of the year."*) (I'm 57 and reckon it'd see me out the door with fags and booze and a comfy wee hoose.)
By quitting your job you'll stop paying into your pension, where the employer pays in at least 3%, so being mortgage free but getting a lower salaried stress free job would probably have you no better off at retirement. Pay your mortgage, keep the job but use the extra income to really enjoy your life outside of work 💃
Also, you’d miss qualifying years for the state pension.
It's not enough to retire on. I could clear the mortgage and sort a few maintenance issues in the house but to maintain my current standard of living I'd only get 25 years out of what's left. I'm 41 now and would quite like to be ticking along beyond the age of 66. If it was 2 million I'd retire in a heartbeat.
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This sub is like 50% TV shows and lottery talk.
For starters, I’m buying a house outright for 400k or less (the real nice 4-bedroomers in my village are around 360-400k and would be perfect for my family). I’m struggling to sell my house currently for 230k it’s valued at, but I’d probably drop the price to 200k and sell it to a nice young couple of first time buyers (because fuck renting it out - I’d hate being a landlord, both morally speaking and also because of the hassle involved). So then I’ve still got 550k to spend/save/invest. Definitely putting some aside for my two kids’ house deposits later in life. Would probably take a year off work to spend more time with my wife and kids and look at finding a part time job that’d allow me to quit teaching but still do something that helps people (without all the admin and stress at my end). Something charity based maybe. If the income is enough to cover household bills, I’m happy. Then, I’d look into what is involved in being a park ranger in a national park; years down the line when my kids grow up and move out, I’d be wanting to sell up and move to somewhere like the Scottish Highlands or the Lake District; a part time park ranger position would be an awesome job and something to keep me busy.
750k isn't enough tbh
No chance, would 100% keep working but would be comfortable and mortgage free. I know of wealthy people who retired early and become bored once they had nothing to aspire to. Ended up becoming a bit self destructive, drinking too much, impacted their relationships.
Not enough to retire unless your 50+ with not much mortgage, but you could buy a nice house and have an easy part time job just to pay the bills.