Economy living

[Chancer]

Speaking for myself (similar circumstances to the OP) I dont count on having an OAP to live on at all which is precisely why I am doing what I am doing right now.

I currently have 26 years out of the 30 for a full pension due to in hindsight making some wrong short term decisions to only draw dividends for several years, now I did have 26 years out of 40 so I should be celebrating but its not like any government to give away anything and I am still bemused by the reasoning behind it given the demographic crisisother than they may one day say you have to have the full 30 years or you get nothing.

However I still have 25+ years before the current UK retirement age so plenty of time to pay some NIC for a few years.

My UK rental property (when tenanted!) yields 4% per annum gross based on its market value, when I have finished the flats here my projected return on investment will I hope be around 30%  on the money that I will have put in or 10 - 15% of  its final market value according to how it will be valued.

Sounds great untill you consider that I have been slaving away for 5 years now with no end in sight, if you consider the opportunity cost, i.e. the money that I would have earned had I continued with my UK business for the last 6 years (including when I travelled) and the next couple of years to come the  its a crap investment.

But thankfully life isnt all about money if you are not afraid to jump off the merry go round.

Editted.

I see no reason at all why one should not be able to live in retirement in France on a UK state pension if you are mortgage free, the OP did say that he wanted to live a simple life, I have had to draw in all the horns this year and I manage to get by on €439 euros per month which I suspect is more than the pension for a single retiree.

Ok in my case it will not be for ever and I do still have some savings if needed and further assets to liquidate and I appreciate that it is very different to having to live on a small fixed sum with no rainy day money.

[glenton]

Very interesting posts, thanks.

There are some properties that do not need major money spent on renovation and just require decoration.

I renovated, improved and decorated my last 2 properties which I enjoyed doing.

This mid terrace for £26k

http://www.francepropertyshop.com/PropertyDetails/55286

I could invest £150k and get £6k a year from interest.

I would need to get a job and earn say another £6-8K PA.

Or this 1 bedroom property with a florist shop.

http://www.francepropertyshop.com/PropertyDetails/49501

[Albert the InfoGipsy]

[quote user="glenton"] I could invest £150k and get £6k a year from interest. [/quote]

Or invest £150K and get about £14K return on a decent bond. [:D]

[woolybanana]

Wish I knew how to do that!

[parsnips]

[quote user="Albert the InfoGipsy"]

[quote user="glenton"] I could invest £150k and get £6k a year from interest. [/quote]

Or invest £150K and get about £14K return on a decent bond. [:D]

[/quote]

Hi,

      Please let us know where you can get over 9% on a bond ,at present.

[Albert the InfoGipsy]

See my post earlier in this thread.

[powerdesal]

[quote user="parsnips"][quote user="Albert the InfoGipsy"]

[quote user="glenton"] I could invest £150k and get £6k a year from interest. [/quote]

Or invest £150K and get about £14K return on a decent bond. [:D]

[/quote]

Hi,
      Please let us know where you can get over 9% on a bond ,at present.
[/quote]

Ditto

[Pickles]

I would suggest doing a Google on the company concerned (in Albert's posting) and the company running the fund proposed. Also have a look at:

http://www.moneymarketing.co.uk/1007857.article?cmpid=MME01&cmptype=newslette

which gives pause for thought.

Regards

Pickles

[parsnips]

[quote user="Albert the InfoGipsy"]

Glenton,

Sorry to add to the doom & gloom, but how many years of UK NI contributions do you have? AnOther's assumption that you'll have enough to live on from a UK state pension in your old age may be optimistic. That means that your 200K would have to last until you pop your clogs.

On the bright side, if you look at long term bonds you can get some very good returns. Have a look at this, for example.

http://www.rockinghamretirement.co.uk/index.php?option=com_content&task=view&id=52&Itemid=50

[/quote]

Hi Albert,

       Having looked at your link and also the comments in "Moneymarketing", it would seem you are committed to a 10 year bond which is promising you an eventual payout averaging 9.5% pa.  I think you are quite an optimist if you have invested a large portion of your capital in this.

[Panda]

Re the post with the houses for sale links, Limousin is not somewhere I would chose to buy to let (nor live for that matter but that's an issue with the weather and isolation, personally), not a lot of work in the area.  Better to go for somewhere where the French like to live, I would say/

[Albert the InfoGipsy]

Panda,

As I said: "for example".

My personal financial arrangements have no connection with discussions on this forum.

[Panda]

Huh, I never questioned your example AI, did I???[8-)]

I was referring to Glenton's posts on property in the Limousin

[Pickles]

[quote user="Panda"]Huh, I never questioned your example AI, did I???[8-)]

I was referring to Glenton's posts on property in the Limousin[/quote]

I think AI meant to refer to the post made by Parsnips and possibly me (Pickles)

Parsnips, Pickles, Panda - all the same really. Vegetables or vegetarians.

Regards

Pickles

[Albert the InfoGipsy]

Sorry, Panda. I did mean Parsnips. (I think. Nurse! The tablets!!!)

[parsnips]

[quote user="Albert the InfoGipsy"]

Panda,

As I said: "for example".

My personal financial arrangements have no connection with discussions on this forum.

[/quote]

Hi,

  So what you seem to be saying is that there are investments on offer (and in the old adage "if they seem too good to be true , then they probably are") which you personally have not taken on, but are quoting to the OP as a way of making his capital go further, although you seem to be saying that they are too risky for you. The OP has limited resources which he cannot afford to gamble with, and the investment you suggested seems an extreme gamble.

[NormanH]

with 200,000 you could buy 3 flats in a medium sized but not very tourist town, and live in one and let the other two at about 350 Euros a month paid for by the AL to a couple..

[Albert the InfoGipsy]

Parsnips,

I'm not saying anything about my attitude to risk, relative to this or any other product. I merely pointed out that there are bonds on the market that will give a higher rate of return than a standard savings account and cited this one as the first example that came up. I doubt if the OP or anyone else would treat my comments as serious financial advice without looking further into the matter.

 

[Panda]

[quote user="NormanH"]with 200,000 you could buy 3 flats in a medium sized but not very tourist town, and live in one and let the other two at about 350 Euros a month paid for by the AL to a couple..
[/quote]

I've got one for 160k Norms it's yours if you want it!!