Tennis earnings

Discussion in 'General Chat' started by @@@@, Jan 15, 2008.

  1. @@@@

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    Watching the Tennis French open The commentator on Eurosport said Venus Williams has amased a staggering $18,000,000.00 USD which works out £9,152,766.96 Good luck to Venus. What would you do with it. Would you in your job as a dustman retire:) Wonder if you just stuck it in the bank you could live of the interest rest of your life. If you did not move or change your life style. Would you give a million to your local hospital. Would you keep it quite could you stand the begging letters and your new found friends. Those beautiful women who never give you a second look would be now fighting for your attention at your front door.
     
  2. Greg Hook

    Greg Hook
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    In a savings account say at 6.5% per year, that would give you £65,000 interest per year on £1,000,000 (I think!).

    So, £9,000,000 would give £585,000 per year interest alone. But who has 9M and just leaves in the bank, unless you have many more millions elsewhere I guess.
     
  3. daveaka

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    Thats peanuts compared to the American baseball player Barry Bonds, so far he has amassed over $188, 000,000. Another Baseball player named Alex Rodriguez has a 10 year contract with the Texas rangers worth $252,000,000, thats $25,000,000 a year :eek:
     
  4. thefragile

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    So what you saying is that if i get a million squid, stick it in the bank that would give me a pretty decent salary without having to work.....

    hmmmmm....... where can i get a mil from?
     
  5. mooperman

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    and therein lies the problem... its one of the reasons that dirty rich/famous people still buy a house on a mortgage, the interest on there own cash pays the mortgage = essentially a free house....
     
  6. Mr Incredible

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    Yeah, but in order to maintain the "value" of that income, the capital will need to increase by the rate of inflation in order to keep the value of the interest earned. So in effect although one may get say 6.25%, you'd have to put say 3% (? current inflation rate) right back into the pot.
     
  7. y2k

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    Why would they do this, if you have a mortgage on a property you end up buying the property 4 mabey 5 times (somewhere around that figure) over the years, so if you had the money to buy a house you would be better of buying it instead of geting a mortgage, or is there something im missing?
     
  8. Pezerinno

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    I'd say the real rate of inflation is even higher. Most accounts would mean a loss in real terms. Still not as though you would be doing your own finances with that many millions at your disposal.
     
  9. GBDG1

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    And that isn't much compared to what Beckham is getting.

    Those tennis earnings arn't that great when you consider Ronnie O'sullivan has amassed £5m and Steven Hendry about £7m, and they play snooker.
     
  10. GBDG1

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    Wouldn't you have to pay 40% tax as well?
     
  11. @@@@

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    I was talking to my neighbour having a giggle about what you would do with nine million pounds. Thought i would spin the funny line would you give up your job as a dustman. He said nothing carried on digging out his rose bush then looked up and said. If you had nine million pound you could bribe someone to give you a job as a dustman. Now there is another side to it i never thought of.
     
  12. nej

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    Look at it this way; you win £1m on the lottery. You want to buy a house for £1m. You could either use all your money on buying it, or get a mortgage (for say 10 years) and pay it with the interest (no I don't know if 10 years is enough, this is hypothetical!)

    If you buy it outright, after 10 years you own the house but have no money in the bank.
    If you mortgage it, after 10 years you own the house, still have £1m in the bank and then start to receive £xxxxxx per year in interest as well because you don't need to pay the mortgage anymore.

    I've obviously spent far to long obsessing how I'm going to spend my lottery winnings... :D
     
  13. imightbewrong

    imightbewrong
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    Sorry - that doesn't work. The interest you are getting will be less than the interest you are paying, so you will be worse off.

    e.g. I buy a house for 1 mil - morgtgage at 6%, interest at 5%. So each year I get 50K in interest and a 60K mortgage bill - so I have to find 10K from somewhere - where does that come from?
     
  14. nej

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    Nonsense, my mortgage is currently far less than 6%. You could easily fix it at a rate under what you'd get for your savings, or at least get a discounted rate and then switch every few years.
     
  15. imightbewrong

    imightbewrong
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    It can work out in the case of taking a long term fix, but if savings rates were higher than mortgage rates banks would go out of business *very* fast.

    Looking quickly it seems the best interest rates are around 6.5% for savings. Take the 40% tax off that and you are earning 3.9% nett. That means if your mortgage is 3.9% then there's no difference between buying outright and having a mortgage. As the mortgage goes below 3.9% then you are indeed better off taking the max mortgage. I think you'd do well to find a mortgage below 3.9% though.
     
  16. y2k

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    Thats 10k a month for a 10 year mortgage and over 5k for a 40 year mortgage at the best rate you will get. You will be buying this house many times over when you could have bought a house at half the price and lived of the rest. Its always better to buy your own home if you can afford to because if you fall behind on your mortgage repayments don't forget they can take your house of you.
     
  17. nej

    nej
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    Hypothetical, people. Don't forget I said it was hypothetical!
    The point wasn't that you'd be paying more for the house (obviously you will be!) but that you'd have more use of the money in the long term.

    I will freely admit to [-]forgetting about[/-] purposefully ignoring the tax though!
     

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