revtothelimit - motorbike forum

weeksy wrote: Fri Nov 04, 2022 10:18 am

Yorick wrote: Fri Nov 04, 2022 10:16 am To retire, you don't need anything like your previous wage.

That's assuming your mortgage is paid off..

Make your choice.

It's not always a 'choice'.... It's time and circumstances too. I can't magically make the mortgage go away currently

All that goes without saying. Or buy a smaller house.

weeksy wrote: Fri Nov 04, 2022 9:56 am

Potter wrote: Fri Nov 04, 2022 9:52 am I think in general, as a sweeping statement, in my humble opinion, from watching those people, anyone I know with more than a million quid in the bank seems to get back on a downwards trajectory of unhappiness, and the richest people I know are some of the angriest I've ever met, I wonder what it's all about, all the money in the world and they don't seem to be happy very often.

It's something i'd sure struggle to understand as a concept... but i do get where you're coming from.

For me though, heck my life would be incredible if i could just give up work and have the same level of income i have now.... let alone being 'rich'.

Paying off the mortgage would literally be life-changing for me. It's a dream, but will of course eventually become a reality...

If i lived in the world where i could have £1m in the bank though... jeepers, i can't see how i'd be unhappy.

I wonder how the wealthy end up so unhappy too. But then, I wouldn't need much to be happy and with more? I'd share it. Simple person I suppose

Potter wrote: Fri Nov 04, 2022 10:15 am I reckon the sweet spot is a modest but nice house all paid for, a car of your choice each, your bills all paid and a couple of grand a month in your hand to enjoy life. Any less and you think about money/income too much, any more and you'll still end up thinking about money too much.

This.

I am lucky that I was left some money and that enabled me to buy a place of my own. Ok, it's ridiculously small. But, it's in the place I want to live and it's all mine. It doesn't cost a lot to keep going, luckily.

When I lived and worked in the uk, my wages would never allow me to get a home of my own (I wasn't so keen on 100% mortgages!) because of the area I lived in. Most people I knew did so with help from family or because they were a couple with two incomes

Part of that was that I did spend a LOT on fuel for a bike, but the flip side is that I didn't drink, so I guess it balanced out! But I just didn't earn a lot. I was earning the most I had when I quit to come out here the first time, but for a company whose managers were the biggest bullies - I'd rather work for less than be that unhappy being bullied. Had I stayed in the Uk, I would have eventually changed jobs and worked back up to a better wage, but I'm glad I quit!!

If I had been able to work properly for the last 2.5 years (well, TBF if the last 5 years had gone to plan!) then I'd be in a really good place and would actually be very happy. Yes, I would have looked to buy a bigger place, but it wouldn't need to be huge cos there's only me! Equally, I'm not unhappy with having a home and no money!

I'd guess that, as a HUGE generalisation, if you can be 'not unhappy' with very little, it's probably easier to be happy with a lot?

People forget about the value of some (financial) things they have when they tot things up. I know it's not readily convertible into cash but it's an interesting exercise to find out how much a company pension ie Weeksy's would cost to buy.

TBH an index linked pension or a secure job are probably the best assets in a 'portfolio' If you have both, you're solid.

(I know, it's boring, won't suit everyone etc but my appetite for risk has diminished somewhat )

Re 'wealthy' You could take the view it's when the bank wants to allocate you a 'wealth manager' (so they can siphon commission out of your stash) or when Coutts will take you. Mainly it's just when the stuff you worry about most of the time isn't money.

Count Steer wrote: Fri Nov 04, 2022 10:32 am I know it's not readily convertible into cash

That's arguably a good thing in my world

A lot depends on what you want from retirement too. I'm not into expensive restaurants, in fact, I actively avoid them. I'm not into top of the range holidays either, I'm more a TUI half board sort!. Overall I'm a pretty low rent kinda person.

The wife and I both have good private pensions to go on top of our state ones, which should cover our spending needs. I really like what I do for a living and miss being there. My wife is the opposite and her job is going south daily. I suspect she might chuck it in soon and I doubt she'll go after another job, even though I suspect shell want a p/t one at least. Her Mum has mild dementia at the moment, but that wont improve and my wife will eventually need to be about to help with that. We don't have a mortgage so can afford to drop her wage if need be. Of course, I'd rather we kept topping up the bank accounts, but you gotta play the hand you're dealt...

PS Anyone invest in whisky casks?

Potter wrote: Fri Nov 04, 2022 11:19 am So I started to try and see if I could get it up to what I wanted (I've got 18yr years to go) and I dropped in £100k...then another £100k....then another...etc.

I read that all wrong first time and was about to abuse the beejaysus out of you

Potter wrote: Fri Nov 04, 2022 10:15 am
Like I said, having seen everything I've seen, I reckon the sweet spot is a modest but nice house all paid for, a car of your choice each, your bills all paid and a couple of grand a month in your hand to enjoy life. Any less and you think about money/income too much, any more and you'll still end up thinking about money too much.

The only thing I'd add to that (from experience and what you've said about your house) is also an 'Oh ' fund specifically for non-routine home maintenance. It's amazing how a pile of bricks, tiles and glass (and electricity, drains and plumbing ) can suddenly decide it needs to dive into your stash and splurge a few £k.

I found the solution that ^^^ was to stop Mrs. D entering online draws to win a camper van.

Once she did that, nothing in our house broken again. Coincidence? I think not!

weeksy wrote: Fri Nov 04, 2022 8:45 am

Potter wrote: Fri Nov 04, 2022 8:09 am
I've got a portfolio that's pretty diversified

Now that's when you know you're wealthy... When you call it a Portfolio you have very little in the money world to trouble you

Yep...you don't need to be loaded to have a diversified portfolio. I put my pension in one, lost 24k in 7 months, yesterday about 17k, so better. Advice is leave it and wait for the good times.

Dodgy knees wrote: Fri Nov 04, 2022 3:36 pm

weeksy wrote: Fri Nov 04, 2022 8:45 am

Potter wrote: Fri Nov 04, 2022 8:09 am
I've got a portfolio that's pretty diversified

Now that's when you know you're wealthy... When you call it a Portfolio you have very little in the money world to trouble you

Yep...you don't need to be loaded to have a diversified portfolio. I put my pension in one, lost 24k in 7 months, yesterday about 17k, so better. Advice is leave it and wait for the good times.

Did you do the True Potential (?) thing in the end? I remember an earlier thread where you were weighing up the options.

Yes I did, it doubled my 25 % lump sum and was planning on house improvements, invest the rest. Did some but hanging on a bit now. I'm not too bothered, still working full-time. It's a global diversified portfolio but in my short experience, it seems to follow the ftse100.

My PB win has landed in the bank account! Pints of Krug all round.

(It's £25).

Potter wrote: Tue Nov 08, 2022 11:00 am Vanquis is doing a two-year fixed savings account at 5%.

Once again, IMHO, 5% guaranteed over two years is not to be sniffed at.

Premium bonds is 2.2%, NS&I saver is 1.8%.

I suppose it depends on whether you're feeling lucky or want 5% on your £50k guaranteed.

The general consensus is that interest rates will peak end of next year.
Then will be great time to lock into a 5 year deal. Can get nearly 5% now before the latest rise has taken effect.
Will be just above 6% soon.

Potter wrote: Tue Nov 08, 2022 11:00 am Vanquis is doing a two-year fixed savings account at 5%.

Once again, IMHO, 5% guaranteed over two years is not to be sniffed at.

Premium bonds is 2.2%, NS&I saver is 1.8%.

I suppose it depends on whether you're feeling lucky or want 5% on your £50k guaranteed.

I'm a 'hedge my bets' investor

For the £50k sum I'd probably put half in at 5% and half in PBs for 6 months and forgo (a possible) 2.8% for that period....in case a 6% account comes up. Who knows? The PBs just might come good.

As you say though, it's all about individual 'wants'.

Potter wrote: Tue Nov 08, 2022 11:56 am

I don't see the markets skyrocketing in 2023 or 2024, everything points to them staying depressed or dropping more, so if I had half a million liquid to put somewhere then I wouldn't be desperate to buy the dip just yet, I'd probably put it in something fixed so I know what's coming in for two years, then decide. I'm not taking any money out of the markets, that's suicide, but I'm wary of buying more just yet.

Amen! When I was a bit more of an active investor (I'm now a 'recumbent investor ) I remember trying to call the bottom of the market. Failed gloriously. Every. Time.
Decided in the end that drip feed and trying to buy across the dip was the best compromise. Get stung on fees then of course.

Potter wrote: Tue Nov 08, 2022 1:17 pm
I'm scratching around in the markets at the moment, I can't even figure out what to short, my guess is as good (or bad) as anyone else's...although I seem to outguess Goldman Sachs every time. About 60% of my money is now in a Vanguard 60/40, but that's down, and I've got some flyaway commodities and metals. Nothing I've bet on seems to be doing well atm. I bought SMT.L in March in what I thought was a dip, that's money that's never coming back

Just looking at SMT. Ouch! On the 5yr data, they were bobbling along at 500ish then took off. I got (slowly) rinsed on Vodaphone by about 50% but they're paying a decent divi....so I've doubled down and bought some more (it makes the % loss look smaller ).

Outguessing Goldman Sachs? I used to get Investors Chronicle and keep watch on some of their tips over a decent period. When things stoofed they just stopped writing about them. Sometimes educated guesses are the same as chucking darts at a board, blindfolded, too. I suppose they work on a % will fly and a (hopefully) smaller % won't, but if it's only a virtual portfolio they're 'running', it's not exactly skin in the game and even GS only lose other people's cash for the most part.

I'd probably be as well with a couple of trackers but it's just a bit of fun/keeping my hand in with a limited pot now. If it makes a few quid If it doesn't I still get to eat a hot meal.

Potter wrote: Tue Nov 08, 2022 1:17 pm
I'm superstitious though and I knew I'd make money whilst most of everyone else got rinsed with inflation and higher debt, and I thought karma might bite me, so I told anyone that would listen what I thought I knew, including on here - but that thread didn't end so well either
I tried though.

Whenever I need financial advice the first place I always look is a random bloke on a motorcycle forum.

Pirahna wrote: Tue Nov 08, 2022 3:48 pm

Potter wrote: Tue Nov 08, 2022 1:17 pm
I'm superstitious though and I knew I'd make money whilst most of everyone else got rinsed with inflation and higher debt, and I thought karma might bite me, so I told anyone that would listen what I thought I knew, including on here - but that thread didn't end so well either
I tried though.

Whenever I need financial advice the first place I always look is a random bloke on a motorcycle forum.

Marv. May I suggest investing all your worldly goods in Count Steer's North Sea Bubble Fund, RTTL T-shirts (next big collector's item - guaranteed!), black tulip bulbs and the Icelandic Vineyards NFT Fund? Just PM me your bank details and I'll sort it for you.

Pirahna wrote: Tue Nov 08, 2022 3:48 pm

Potter wrote: Tue Nov 08, 2022 1:17 pm
I'm superstitious though and I knew I'd make money whilst most of everyone else got rinsed with inflation and higher debt, and I thought karma might bite me, so I told anyone that would listen what I thought I knew, including on here - but that thread didn't end so well either
I tried though.

Whenever I need financial advice the first place I always look is a random bloke on a motorcycle forum.

It's not random, it's always the same bloke on the forum.

Martin Lewis is doing Premium Bonds tonight, his show is on now on ITV.