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Pensioners would suffer the most, as their funds rely on the dividend payments. Seems fair enough given the economy was destroyed largely to protect them.
Furlough replacement scheme.
- Thread starter Mottie
- Start date
Pensioners would suffer the most, as their funds rely on the dividend payments. Seems fair enough given the economy was destroyed largely to protect them.
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You're talking about pensioners on income drawdown?
Not the majority.
And they can still generate cash by reducing holdings.
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Liquidating is not generating. Equity Release is another way for pensioners to "generate" money - or literally lose their house.
But a pension scheme is intended to produce income for a pensioner until their death.
It can be done by purchasing an annuity, or by slowly selling off the value of the fund (and hoping that you correctly estimate the date of your death, future growth, future inflation, and the date the fund will run out).
Funds increase in value by capital growth as well as by reinvestment of dividends.
There was a time when people used to buy government bonds for a reliable income.
Some people like to invest in assets that produce no dividends. For example I've heard of older people investing in Zoom and Tesla.
Pensioner income is not dependent on an unending stream of dividends.
It can be done by purchasing an annuity, or by slowly selling off the value of the fund (and hoping that you correctly estimate the date of your death, future growth, future inflation, and the date the fund will run out).
Funds increase in value by capital growth as well as by reinvestment of dividends.
There was a time when people used to buy government bonds for a reliable income.
Some people like to invest in assets that produce no dividends. For example I've heard of older people investing in Zoom and Tesla.
Pensioner income is not dependent on an unending stream of dividends.
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Which one is Mottie, which one is ellal
D
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https://www.thedailymash.co.uk/poli...g-confusing-job-support-scheme-20200925200859
RISHI Sunak has replaced furlough, which pays you for doing nothing, with the Job Support Scheme that pays you for doing less. But how does it work?
Can I get paid for not working?
Not in the pure and wonderful way you have been all summer. Instead you’ll have to do at least a third of your usual hours. We know, right? You used to think Rishi was a good guy but he’s just one more bastard like all the rest.
Who pays for it?
Sadly not the UK taxpayer, ie. you but in a few years’ time. Only 22 per cent of your wages will come from the government now, with your employer paying the rest and the final amount only being 77 per cent of your pay. Which is fine because we can all lose a quarter of our pay without even noticing.
Is everyone eligible?
Only small and medium-sized companies. Larger ones get nothing unless their turnover has fallen, which is why Sir Philip Green has suddenly declared TopShop to be 300 coincidentally-named quirky independent boutiques.
Aren’t I going to get fired anyway next year?
Yes. But this way you’ll have a lovely Christmas, unless you’re in a care home, a student trapped in a hall of residence, an unpopular member of a family larger than six, or work in pantomime.
What about theatres?
What about f**king theatres? Yes, they’re a far bigger part of the UK’s GDP than the fishermen we’re starting a war for, but actors are luvvies and they’re always putting on Marxist plays. F**k ‘em. They’ll make nice Wetherspoons.
RISHI Sunak has replaced furlough, which pays you for doing nothing, with the Job Support Scheme that pays you for doing less. But how does it work?
Can I get paid for not working?
Not in the pure and wonderful way you have been all summer. Instead you’ll have to do at least a third of your usual hours. We know, right? You used to think Rishi was a good guy but he’s just one more bastard like all the rest.
Who pays for it?
Sadly not the UK taxpayer, ie. you but in a few years’ time. Only 22 per cent of your wages will come from the government now, with your employer paying the rest and the final amount only being 77 per cent of your pay. Which is fine because we can all lose a quarter of our pay without even noticing.
Is everyone eligible?
Only small and medium-sized companies. Larger ones get nothing unless their turnover has fallen, which is why Sir Philip Green has suddenly declared TopShop to be 300 coincidentally-named quirky independent boutiques.
Aren’t I going to get fired anyway next year?
Yes. But this way you’ll have a lovely Christmas, unless you’re in a care home, a student trapped in a hall of residence, an unpopular member of a family larger than six, or work in pantomime.
What about theatres?
What about f**king theatres? Yes, they’re a far bigger part of the UK’s GDP than the fishermen we’re starting a war for, but actors are luvvies and they’re always putting on Marxist plays. F**k ‘em. They’ll make nice Wetherspoons.
I said "generate cash."
You can generate electricity by burning coal. Once you have done that and the electricity has been used, you have less coal than you did before.
if you have a million pounds worth of Tesla shares, you can generate income by selling a thousand pounds worth every month. If there is no capital growth in the shares value, this income will last you for one thousand months, or 83 years, which is about a lifetime, and much longer than your retirement will last
Alternatively, if the shares paid a dividend of £12 per share per year, you could take that income from the dividends, and still have the same number of shares when you died. If the shares increased in value by £12 per year, your total return would be the same. you can get a return by income or by capital growth.
If you draw income greater than your total return, your fund value will erode; if you draw less, it will increase. It doesn't matter whether you take dividends or fractional sales. It will erode much worse if returns fluctuate significantly from year to year.
Notionally, drawings from a pension should be arranged so that the fund runs out the day you die.
I'm sure you knew that.
Retail sector...primark etc. Why pay £90 00 plus for clothes when primark sells the same quality without them being a brand name for £10.00
Cinemas...why bother when netflix and the same businesses will sell you them for a fraction of the price.
Resturants... why bother again just eat etc if you fancy a cheap takeaway.
Pubs... why bother, anyone can get drunk or sip mildly for a fraction at what the pub sells the stuff at.
I personally would prefer to take kids and partner out four times a week for something to eat, go to the cinemas, kids day out but reality of it is, its to expensive.
Once rent, mortgage, finance, bills are paid im not alone surley where at the end there isnt much left in the pot to do much with.
The furlough scheme was a fantastic boost of finances to many, but again i cant be alone when i type this but most of mine went on debts occured and a week away on holiday.
Still in debt as im sure are others.
If the government could keep giving me and everyone a few grand free each month, that would be great.
Good news! I’ve just taken on a couple of distance learning students starting from November. Not too much work mind, easy peasey stuff and I can do it from home but guess what? It’s just enough to qualify us for the furlough replacement scheme that, coincidentally, starts at the same time! What’s the chances of that happening? Still, at least @ellal will be pleased that I’m doing something for my payout. I think that karma he was wishing on me has arrived. Cheers mate. 
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'Bout time you got off your arris.
Contrary to popular belief, I’ve not spent my furlough "on my arris".
I have a chaise longue!
Well, I've just authorised our accountants to put in our final Furlough claim for October. Let’s see what Rishi has for us in November.
More of the same! Back up to 80% of wages. Same for the self employed too. I’m just wondering when I’m going to get around to spending my own money instead of ellals!
Apparently he has extended it until March - very ominous.
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