It still has to be put to work somewhere so its not exactly riches, just a means of putting food on the table. In my hypothetical example he'd normally be much better off keeping the land.
Exactly.
not necessarily , you can borrow money to buy a new EV much lower than borrowing money to invest in a BTL , you could use the cash to buy a BTL for example and buy the EV @2.9%Each to their own on matters of opinion, and I would be very catious about debt, however high inflation makes borrowing less of an issue rather than more.
Borrowing to buy a depreciating asset well that's to be avoided.
no i get you, but i see too many people in their 70s wedded to their accumulated wealth afraid to spend it, i dont see the point in that either, its hard to leave the habits of a lifetime behind.I haven't read the Millionaire Mindset but The Millionaire next door is a very good read.
For instance, buy an expensive car when you have made it. Not when you are trying to make it. No point in buying a €100k+ car when you aren't rich. Invest that money and buy a decent, cheaper car. In years to come, when you are rich, that €100+ car will then be a small percentage of your overall wealth. In other words, be the middle age man driving a Porche.
It is all about living within your means. Too many people have lifestyles that they may not be able to maintain. As Peanuts said, there are a lot of high earners but they aren't rich because they spend their money. Unless you plan to work until you die and earn the same level of income, there will come a time when you are going to have a drop in income. And because you haven't saved for the future and are not wealthy, there will be a drop in lifestyle...or more likely, you will spend what you do have in the initial years and then run out of money.
Steven
http://www.bluewaterfp.ie (www.bluewaterfp.ie)
no i get you, but i see too many people in their 70s wedded to their accumulated wealth afraid to spend it, i dont see the point in that either, its hard to leave the habits of a lifetime behind.
The one thing I've learned in recent months is that if you hang on to it, you run the risk of spending it on nursing homes or Fair Deal spending it for you to cover the nursing home costs. Given Fair Deal can look back 5 years (or at least that's my understanding), in addition to planning for retirement, people also need to start thinking about planning for succession/inheirtanceno i get you, but i see too many people in their 70s wedded to their accumulated wealth afraid to spend it, i dont see the point in that either, its hard to leave the habits of a lifetime behind.
80% of your income and 7.5% of your home, farm or business per year for 3 years. Virtually every other financial asset such as shares, savings etc can be taken over the course of the time a person is in a nursing home to pay for it. So someone who has large savings could have them wiped out over a number of years unless they redistribute them in time.I thought Fair Deal was a finite % of income/ property which is reasonable enough. Not sure what above point is then
Some "research" that was, LOL.
Care to post some links to substantiate this nonsense?
Not just of a lifetime.no i get you, but i see too many people in their 70s wedded to their accumulated wealth afraid to spend it, i dont see the point in that either, its hard to leave the habits of a lifetime behind.
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My mother 78 now still buys 10 chickens if the price is right, all her sisters are gone now but when they were alive and times were tough my mother would hop into the car chickens on back seat, stop off a green grocer haggle for 10kg of spuds and deliver them to her sisters, she maintains one decent meal a week is a good foundation.Not just of a lifetime.
But sometimes also of previous lifetimes!
My parents grew up during the war/emergency.
They were used to parsimony and frugality.
That mindset/approach arguably persisted longer than it was relevant when they were better off.
(But at least they did start treating themselves a little later on in life).
And it trickled down to their children to a greater or lesser extent.
So it's still echoing down the generations...
80% of your income and 7.5% of your home, farm or business per year for 3 years. Virtually every other financial asset such as shares, savings etc can be taken over the course of the time a person is in a nursing home to pay for it. So someone who has large savings could have them wiped out over a number of years unless they redistribute them in time.
The Fair Deal scheme doesn't do that though.It would amaze me if the Government ever introduced a policy that didn't coddle farmers or business owners, or didn't incentivise you to buy the largest PPR you could.
I have this conversations with clients all the time. They tell me that they shop in Aldi and Lidle all the time and look for offers. Shopping Aldi won't make a massive difference to most people's wealth. But driving a €100,000 Range Rover to get there will. It will take a long time shopping in Aldi to see the difference between spending €100k on a car and €30k. People need to worry about the big ticket items, not saving a few quid here or there.My mother 78 now still buys 10 chickens if the price is right, all her sisters are gone now but when they were alive and times were tough my mother would hop into the car chickens on back seat, stop off a green grocer haggle for 10kg of spuds and deliver them to her sisters, she maintains one decent meal a week is a good foundation.
She still does it but more for my siblings in Cork that are close to her and the number used has reduced but the 2 freezers are full.
They knew the value of everything even if the cost was sometimes prohibitive.
"Penny wise and Pound foolish "I have this conversations with clients all the time. They tell me that they shop in Aldi and Lidle all the time and look for offers. Shopping Aldi won't make a massive difference to most people's wealth. But driving a €100,000 Range Rover to get there will. It will take a long time shopping in Aldi to see the difference between spending €100k on a car and €30k. People need to worry about the big ticket items, not saving a few quid here or there.
Steven
http://www.bluewaterfp.ie (www.bluewaterfp.ie)
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