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Great Guy

Things that we used to do...

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Posted (edited)

Vote

(Sorry still half asleep and misread the question. Voting: something we do weekly now, but will not bother with in couple decades from now. They will ban it, along with any other powers us plebs may have left)

Edited by BadAlchemy

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Posted (edited)

Listen to CDs

Watch DVDs

Read a (physical) map

Go to pubs (to drink and socialise)

Have decent Top Gear presenters

Watch terrestrial TV

Edited by Libspero

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"Old" things I no longer do or do less

  • I very rarely play any of my CDs or DVDs.
  • Cheques have been at about two or three a year for a while.
  • I still use stamps for birthday / Christmas cards which has alway been my main use but I no longer enter newspaper crossword and similar competitions because of the price of the stamp.

"Old" things I have started to do

  • Bake my own bread - all of it, also supplies all my lunches.
  • Brew my own beer - most of it.
  • Grow veg - not a great deal at present.

"New" things of which I do less

  • Card payments.  Unless there is no realistic choice - I haven't got the cash, it's online or on the phone - or there is an advantage - additional protection by buying something on a credit card - then I make a point of uising cash.  Up to ten years' ago I would routinely use cards for petrol and purchases but having twice had fraud on my credit card I now only routinely use it to buy fuel at two specific garages.  If I need to fill up anywhere else then it is cash.

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3 minutes ago, Hopeful said:

Believe that doing the right thing (working hard, saving) would be rewarded.

It is; as long as you are doing it intelligently - tax avoidance, tax free investments that beat inflation (not cash deposits), some "off grid" investments.

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Just now, Frank Hovis said:

It is; as long as you are doing it intelligently - tax avoidance, tax free investments that beat inflation (not cash deposits), some "off grid" investments.

You can accumulate wealth, but ultimately, unless you become 'mega' rich you are little, if any better off than people who don't, and in fact you end up subbing them.

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1 minute ago, Hopeful said:

You can accumulate wealth, but ultimately, unless you become 'mega' rich you are little, if any better off than people who don't, and in fact you end up subbing them.

I really don't think that's the case if you play it correctly by some sort of FIRE strategy.   And you don't even have to do the RE; FI is good enough.

People haven't realised that the situation has changed and taken control of their finances; instead they have relied upon the old methods that used to work but don't any longer.

As I said for starters: full tax avoidance and equity-based tax free investments.  Then inflation becomes your friend rather than your enemy.

Then look at other things.  As per my pension thread I had been worrying about poor annuity rates on my DC schemes but then got around to thinking that poor annuity rates means that DB transfer values will be excellent so there's a possible opportunity there and I am pursuing that to hoik out whichever DBs have a great transfer value multiple and then will put those into my SIPP.  If annuity rates go back up then I will by them at that point.

Buying a house has never been a priority for me but a period of high inflation that I had been riding with RPI +1% tax free NS&I bonds was coming to an end meaning that they wanted a new home and quite literally bought one with a bit over; also happened to be change of circumstances at that time.  Here's the RPI graph; I was buying from about 2007 and sold out in 2014.  2009 - 2011 were 6% - 7% tax free returns each year.  The return was on a stand-alone basis each year so you couldn't lose past gains.

spacer.png

I have only earned what I would regard as a high salary for six extremely hard working years; other than that it has been a decent salary but it has only been the starting point for getting the investments going.

It's impossible to calculate correctly but totting up investment gains of tax free equities versus being in cash deposits, paying low rents rather than a high mortgage and then buying for cash, and twenty years' of full tax avoidance combined has left me I would estimate at 3x or 4x better off than had I done none of those things.  A spendthrift friend of similar age who, despite being in finance though in a different area, looked at me blankly when I said about such matters; prompted by my mentioning that I had bought my house for cash and her amazement.  I genuinely think she has earned more than me in terms of gross salary as she been happy to take up temp assignments all around the country and additionally did it as a limited company so did some tax avoidance.  She has no savings rather she has debts, no pension other than state, an old car her mum gave her, and rents. When she loses a job she has to be straight down the job centre to claim benefits as she would otherwise be unable to pay her rent.

She is no better off than people who don't work but I would say that I am considerably better off than people who don't accumulate wealth; though am certainly nowhere near being mega rich nor will I be.

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20 minutes ago, Frank Hovis said:

I really don't think that's the case if you play it correctly by some sort of FIRE strategy.   And you don't even have to do the RE; FI is good enough.

People haven't realised that the situation has changed and taken control of their finances; instead they have relied upon the old methods that used to work but don't any longer.

As I said for starters: full tax avoidance and equity-based tax free investments.  Then inflation becomes your friend rather than your enemy.

Then look at other things.  As per my pension thread I had been worrying about poor annuity rates on my DC schemes but then got around to thinking that poor annuity rates means that DB transfer values will be excellent so there's a possible opportunity there and I am pursuing that to hoik out whichever DBs have a great transfer value multiple and then will put those into my SIPP.  If annuity rates go back up then I will by them at that point.

Buying a house has never been a priority for me but a period of high inflation that I had been riding with RPI +1% tax free NS&I bonds was coming to an end meaning that they wanted a new home and quite literally bought one with a bit over; also happened to be change of circumstances at that time.  Here's the RPI graph; I was buying from about 2007 and sold out in 2014.  2009 - 2011 were 6% - 7% tax free returns each year.  The return was on a stand-alone basis each year so you couldn't lose past gains.

spacer.png

I have only earned what I would regard as a high salary for six extremely hard working years; other than that it has been a decent salary but it has only been the starting point for getting the investments going.

It's impossible to calculate correctly but totting up investment gains of tax free equities versus being in cash deposits, paying low rents rather than a high mortgage and then buying for cash, and twenty years' of full tax avoidance combined has left me I would estimate at 3x or 4x better off than had I done none of those things.  A spendthrift friend of similar age who, despite being in finance though in a different area, looked at me blankly when I said about such matters; prompted by my mentioning that I had bought my house for cash and her amazement.  I genuinely think she has earned more than me in terms of gross salary as she been happy to take up temp assignments all around the country and additionally did it as a limited company so did some tax avoidance.  She has no savings rather she has debts, no pension other than state, an old car her mum gave her, and rents. When she loses a job she has to be straight down the job centre to claim benefits as she would otherwise be unable to pay her rent.

She is no better off than people who don't work but I would say that I am considerably better off than people who don't accumulate wealth; though am certainly nowhere near being mega rich nor will I be.

I'd argue that you are better of for a while. The biggest benefit is the DGAF attitude that no debts brings during life.

But wait until you need public services like the NHS - only free at the point of delivery for some, or until you get to a nursing home, where you will end up paying 33% more than the council-funded inmates  in neighbouring rooms whom went to Ibiza every year.

I've no objection to paying my way - I very much prefer it like that. But a level playing field please.

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8 minutes ago, Hopeful said:

I'd argue that you are better of for a while. The biggest benefit is the DGAF attitude that no debts brings during life.

But wait until you need public services like the NHS - only free at the point of delivery for some, or until you get to a nursing home, where you will end up paying 33% more than the council-funded inmates  in neighbouring rooms whom went to Ibiza every year.

I've no objection to paying my way - I very much prefer it like that. But a level playing field please.

I think you're still within the counsel of despair here.

There is no means testing for the NHS and unless you have something very serious and expenisve to treat then you can jump the queue and receive much better private treatment.

I've posted on nursing homes before where the best don't take council placements because they require cross-subsidy from private payers.  Not that anybody actively wishes to go into a nursing home.

The standard service from the NHS is terrible* and the same applies to primarily council placement nursing homes.  You don't want to have to rely upon either.

 

* I know two people who had knee operations about the same time.  The NHS one had been on a waiting list for ages.  Whilst the op was okay the very important aftercare was poor to non-existent and now, still in pain and limping two years' on, a second operation looks likely.  The private one had the same op but very little waiting list, private room, tremendous aftercare and is back to walking long distances without much issue.

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Posted (edited)
5 minutes ago, Frank Hovis said:

I think you're still within the counsel of despair here.

There is no means testing for the NHS and unless you have something very serious and expenisve to treat then you can jump the queue and receive much better private treatment.

I've posted on nursing homes before where the best don't take council placements because they require cross-subsidy from private payers.  Not that anybody actively wishes to go into a nursing home.

The standard service from the NHS is terrible* and the same applies to primarily council placement nursing homes.  You don't want to have to rely upon either.

 

* I know two people who had knee operations about the same time.  The NHS one had been on a waiting list for ages.  Whilst the op was okay the very important aftercare was poor to non-existent and now, still in pain and limping two years' on, a second operation looks likely.  The private one had the same op but very little waiting list, private room, tremendous aftercare and is back to walking long distances without much issue.

So, get rid of the NHS and reduce my taxes :-) Or have an expectation to pay for care that forces people not to piss their money up the wall on the premise  "you can't say we didn't tell you"

People expect to be taken care of. Needs to be changed.

Edited by Hopeful

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3 minutes ago, Hopeful said:

So, get rid of the NHS and reduce my taxes :-) Or have an expectation to pay for care that forces people not to piss their money up the wall on the premise  "you can't say we didn't tell you"

People expect to be taken care of. Needs to be changed.

Yes it does.

However going back to the oirginal point the accumulation of wealth, even with no prospect of being mega-rich, is very worthwhile as long as you can get to a decent amount or, if wholly off grid, even a small amount is good.

The only losing position is to have modest on-grid savings that deny you means tested benefits.  This would include state pension, and no other pension, as without such you get full pension credit up to the level of the state pension.

There's no hard and fast rule but unless you're likely to get to the point where it makes a difference, say £250k at a guess, then you are better off appearing to have no savings - keep them all off grid.

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5 hours ago, Great Guy said:

In a couple of decades there are things that we used to do weekly that we now hardly ever do...

1. Write cheques....

2. Use stamps....

Anything else?

Paying bills in person

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