goingforgold
Registered User
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- 321
I think that's a bit old school now though. I personally know many who have, and not when they're in their seventies either.In theory, yes.
I personally know exactly zero Irish people who have ever done this.
It still doesn't make sense to me. If you have 300k in the bank and are renting, your net worth is 300k. If you use that 300k to purchase a place to live your net worth is still 300k, ie you can sell it again and rent if necessary.It's not a particularly liquid asset and if you have a mortgage then you have a concurrent liability. Worse again, you could be in negative equity.
You always need somewhere to live, so even if you realise the value of your PPR, you will automatically have a new cost/liability in the form of rent or a house purchase (although purchasing a new house could then be an asset).
In our household budgeting, we include the mortgage as a liability and we do not include our PPR as an asset.
As per the original request to which I responded, in my experience, 99.9% of people will not become wealthy from wihtin the PAYE system especially when considering the extortionate PAYE rates. That is the context of the point I made.
Does a farmer get an employee tax credit?A farmer is self-employed, does not PAYE, but faces the same tax credits,
Lots of people working for multinationals or in financial services would dispute that.I could, but I won't.
As per the original request to which I responded, in my experience, 99.9% of people will not become wealthy from wihtin the PAYE system especially when considering the extortionate PAYE rates. That is the context of the point I made.
Lots of people working for multinationals or in financial services would dispute that.
There may be lots of people in that category but they're still a relatively small % of the PAYE population. I think the general statement that 99.9% of people will not become wealthy from within the PAYE system is still broadly true. The vast majority of the PAYE population are unlikely to become wealthy solely as a result of their employment.Lots of people working for multinationals or in financial services would dispute that.
Define “wealthy”.I think the general statement that 99.9% of people will not become wealthy from within the PAYE system is still broadly true.
plan to retire in my 50sDefine “wealthy”.
7.7% is a lot more than 0.1%. And those numbers don’t capture appreciation in the value of stock options on which tax has already been paid. Nor do they capture large share awards that aren’t multi-year.There may be lots of people in that category but they're still a relatively small % of the PAYE population. I think the general statement that 99.9% of people will not become wealthy from within the PAYE system is still broadly true. The vast majority of the PAYE population are unlikely to become wealthy solely as a result of their employment.
Latest Revenue figures below for 2021 have only 7.7% of PAYE workers earning over €100k. Given the tax on that and the low spending power here its more a case of surviving and making the most of it rather than really getting wealthy. We may get lucky with our PPR and maybe our pensions if we're in them early and deep enough but our wealth is unlikely to be from earnings within the PAYE system for the vast majority.
Agreed that it depends on your definition of 'wealthy' and yours is a very good one but its still not one that the vast majority of the PAYE population will realistically attain purely as a result of their PAYE Income. The 7.7% of the PAYE population earning €100k+ are actually contributing 54% of the overall Income Tax take so I'd wonder how many of them are accumulating wealth to the level you define.7.7% is a lot more than 0.1%. And those numbers don’t capture appreciation in the value of stock options on which tax has already been paid. Nor do they capture large share awards that aren’t multi-year.
It depends on your definition of ‘wealthy’. I would class ‘wealthy’ as net assets including one’s home of, say, €3m or more, without massive concentration in terms of the value of that home.
e.g. €1m home, €1m pension fund, €1m cash/investments is ‘wealthy’. €3m home and nothing else probably isn’t.
That's very doable in a PAYE job, you don't even have to be a high flyer or anythingplan to retire in my 50s
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