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  1. #1
    a3tdi2001's Avatar
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    £1million or £50k a year for life?

    What would you rather have? A million pound tax-free lump sum or 50,000 before tax per year for life?
    Last edited by a3tdi2001; 1st March 2012 at 20:56.

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  3. #2
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    Probably the 50k a year. im 23 so id make it last more instead of blowing the million haha

  4. #3
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    I don't think a million would last too long, too much temptation everywhere. You'd have to be very shrewd. I'd take the 50k a year and keep working, pay off the mortgage, nice car, and live comfortably.

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    Quote Originally Posted by willowsdad View Post
    I don't think a million would last too long, too much temptation everywhere. You'd have to be very shrewd. I'd take the 50k a year and keep working, pay off the mortgage, nice car, and live comfortably.
    Take the million, stick it in the bank and you would make more than 50k a year in interest!


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    Quote Originally Posted by Dazmo View Post
    Take the million, stick it in the bank and you would make more than 50k a year in interest!
    I couldn't trust myself to leave it in the bank! I'd turbo charge the v6, buy a b7 RS4 for my daily, and buy a house with a nice size garage. Oh and a range rover for the mrs, and we'd get married. Then back to work cos I'm skint again!

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  7. #6
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    Quote Originally Posted by Dazmo View Post
    Take the million, stick it in the bank and you would make more than 50k a year in interest!
    Spot on.
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  8. #7
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    I'd have the million

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    Quote Originally Posted by Dazmo View Post
    Take the million, stick it in the bank and you would make more than 50k a year in interest!
    You'd need to find a 5% return on your million to make that, hard in this climate, but wont be so hard when the economy recovers. But yeah, its a no brainer.

    £1,000,000 at 5.2% gives you a grand a week, so £52k. You find 5% and you already get 50k per year for the rest of your life. Screw all this not trusting yourself stuff, show some restraint, and lock the money up tight. I'd rather have the £50k a year and STILL have the million thank you very much.

    Couldn't retire on a million quid though. Would still have to work as while you could live on that interest, in 30-40 years time that grand a week aint gonna buy you so much as it buys you now.
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    Take the million and invest it wisely in property or a business of some sport. Should see a lot more than 50 grand a year. Sorted.
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    id take the million and employ some filthy tarts.You just dont know how long youll be on this planet
    Pass me my sock

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    Quote Originally Posted by wazz View Post
    Take the million and invest it wisely in property or a business of some sport. Should see a lot more than 50 grand a year. Sorted.
    Not so sure about that either, bringing in a LOT more. Investing in property is a long term game, the bulk of your gains are to be had in future values.

    £1,000,000 would get you maybe 6-7 x 2-bedroom flats in university city centres (to ensure full time occupation). You could expect to get back maybe £600-700 per month for each flat, so if we take the medium, your looking at 7 x £650 = £4550 per month, so £54600 per month. Except your then liable for each flats upkeep, which will not be unsubstantial. Then as their are likely to be rented by students, they would likely be empty for a couple months of the year. Plus students are notorious for ruining flats.

    A lot less hassle just aiming for about 5%, get a steady income, with only yourself to look after, not a bunch of flats. Okay, the long game you would be better off with the flats, possibly, but then again, that's supposing you look after them yourself, if its the easy life your wanting expect to pay a chink of all income to a property management company too.
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    Quote Originally Posted by xs2man View Post
    Not so sure about that either, bringing in a LOT more. Investing in property is a long term game, the bulk of your gains are to be had in future values.

    £1,000,000 would get you maybe 6-7 x 2-bedroom flats in university city centres (to ensure full time occupation). You could expect to get back maybe £600-700 per month for each flat, so if we take the medium, your looking at 7 x £650 = £4550 per month, so £54600 per month. Except your then liable for each flats upkeep, which will not be unsubstantial. Then as their are likely to be rented by students, they would likely be empty for a couple months of the year. Plus students are notorious for ruining flats.

    A lot less hassle just aiming for about 5%, get a steady income, with only yourself to look after, not a bunch of flats. Okay, the long game you would be better off with the flats, possibly, but then again, that's supposing you look after them yourself, if its the easy life your wanting expect to pay a chink of all income to a property management company too.

    Commercial property is probably the better bet. The 4 walls and roof are your problem but everything else is the liability of the tenant. If you purchase wisely and insure all the properties then you should be looking at a substantial return on the property. Rather than buying in major city centres look at the smaller towns and you should be looking to pay buy between 12-15 properties. Pack in the day job and manage the properties yourself.

    Save up for a few years and you should have enough deposit for more properties purchased on buy to let mortgages.
    Last edited by wazz; 2nd March 2012 at 02:56.
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  14. #13
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    Take the million, and invest it. I'm certain that if you took a million quid into your bank they would give you a little more than that standard ISA rate of interest.

    If probably invest in property. It's the safest bet of a decent return without a doubt.
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  15. #14
    fingermouse's Avatar
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    million please
    red to red black to black blue to bits

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    Deffo a million for me.. I'd pay off mortgage, rent it to my brother then buy a nice 4 bedroom house with a nice motor on the drive, keep working and retire at 40. I'm only 25.

    At 40 with everything paid for, along with interest built up i'd be a happy bloke.
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  17. #16
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    A million easy, invest in property, I would have £3m of property in my portfolio if I had a million quid in the bank! It would easily give me way over £50k per annum income after overheads and tax deduction, plus the risk is minimal if you know what you are doing and keep an eye on your investments!

    Wazz has the right idea!



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  18. #17
    brasiliangringo's Avatar
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    Quote Originally Posted by xs2man View Post
    You'd need to find a 5% return on your million to make that, hard in this climate, but wont be so hard when the economy recovers. But yeah, its a no brainer.

    £1,000,000 at 5.2% gives you a grand a week, so £52k. You find 5% and you already get 50k per year for the rest of your life. Screw all this not trusting yourself stuff, show some restraint, and lock the money up tight. I'd rather have the £50k a year and STILL have the million thank you very much.

    Couldn't retire on a million quid though. Would still have to work as while you could live on that interest, in 30-40 years time that grand a week aint gonna buy you so much as it buys you now.
    You forget the 23% tax on interest, so NET is 52k less 11.96 is £40040 / year.

    I would deffo take the 50k / annum for the rest of my life. £1m may just turn me into a lazy cad with no will to work, having said that, i could prob buy a large property for redevelopment & knock it into small flats as with that kinda cash, you would get good value + loan on it to carry out the works.. hmmm..

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    I wasn't really forgetting the tax, but as you brought it up, if you were to do the rental thing, that would be classed as earnings, not interest, and as such would be subject to income tax, which would mean you would then be paying up to 40% on returns. Which would be even less coin in the pocket.
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  20. #19
    a3tdi2001's Avatar
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    No buy-to-let allowed

    Right, I'm off to get my Monopoply scratchcard, wish me luck

  21. #20
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    If you opt for the £50k then you're looking at about £35k per year after tax. Guessing that most on here are at least 20 years old that gives best case 60 odd years worth of £35k. So let's say by the end of your life you would've received £2 million in cash, if you don't die sooner. It'll probably be less though, based on age/length of life.

    Might as well just take the lump sum £1 million up front and then earn whatever interest you can get, and importantly be able to choose when you want to spend big or enjoy life a bit more, rather than being restricted by smaller yearly payments.

    Apart from the budgeting aspect, nothing about the 50k per year is better than the £1m up front.

    So learn to budget... take the mill... and run.


    Change the question and make it £1m up front or £100k per year and we've got a decision to make!

  22. #21
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    Quote Originally Posted by xs2man View Post
    I wasn't really forgetting the tax, but as you brought it up, if you were to do the rental thing, that would be classed as earnings, not interest, and as such would be subject to income tax, which would mean you would then be paying up to 40% on returns. Which would be even less coin in the pocket.
    Not really but without wanting to get too nitty gritty in this weeks ''fantasy cash'' you would set up an LTD and run everything through that, paying 20 odd % co-orperation tax, 10% on dividends (up to 35kpa). Run the Company RS4 van through the books and ofset that cost against tax bill bla bla bla

    Must be bored..

  23. #22
    jojo's Avatar
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    Quote Originally Posted by a3tdi2001 View Post
    No buy-to-let allowed

    Right, I'm off to get my Monopoply scratchcard, wish me luck
    LOL! You can't put that type of restriction on money 'given' to you!!

    Take the million and make the money work for you!



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  24. #23
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    Quote Originally Posted by jojo View Post
    LOL! You can't put that type of restriction on money 'given' to you!!

    Take the million and make the money work for you!
    It's my money I'll do what I want with it

    Not in my nature to push someone out of the housing market and then steal half their wages at the end of every month

  25. #24
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    I'd take the million and invest in the stock/commodity/forex markets and keep working where I am now. It's risky, but there are many ways to manage the risk and get much, much more than any bank will pay in interest.

    50k/year before tax is bugger all these days and will actually be closer to 30k, because that would put you on the higher-rate tax bracket. 2.5k per month is barely enough to live on, esp if you have kids.

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    Pretty sure interest is taxed differently from earned income, but regardless you are correct, the wife makes just over £50k, and takes home almost £3k. I make a bit more than her, and we do okay, but its not f*** off money certainly.

    But then, if the house was already paid, that might be a different story having £3k per month and no mortgage, lol.
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    I'd take the £1million and invest in shares, can get a decent return if done right mine are returning 4.3% I could live on the 43k a year

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    id be happy with any of the 2!!!

  29. #28
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    Quote Originally Posted by black s3 View Post
    id be happy with any of the 2!!!
    No!, you have to choose!! lol



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    50k a year please. atm im on 20.5 and our lass is on just over 10 doing 4 days a week.
    disposable cash is round here is scarce!

  31. #30
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    Quote Originally Posted by murran View Post
    50k a year please. atm im on 20.5 and our lass is on just over 10 doing 4 days a week.
    disposable cash is round here is scarce!
    Same here mate, Overtime at work has now stopped so im now losing almost £400 a month!

    I have had to cut down and can no longer afford to just 'buy anything i want'

    Although im still taking that million, would be down audi the next day sorting out a nice RS5 or R8 please!


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