* the original titel had a different word, but this was edited
First the question. “If you earn £100,000 per annum, how long will it take you to save £1,000,000?”
On current annuity rates £1m will give you a pension of about £45,000 which will be taxed at 40%.
The question was posed at a recent meeting of Cityzone which is run by a charismatic man called Ronan Bryan.
Ronan really should be the leader of the Conservative Party in that he goes a whole evening managing to say something special about everybody in the room and not upsetting anyone.
He even mentioned my blog on Enterprise Britain. Mind you he confided later that he had not sent out the last one because I had been rude about Fund Managers. All I said was….
Ronan collects together entrepreneurs, professionals and academics. His events are supported by UK Trade & Investment and City University. As importantly the people present are street-wise.
The guy who asked the above question was off this planet. What he does is far too modern for me (he spends his life on a plane, has forty staff and changes the world). His company is on AIM. He said that every penny on his share price was worth £600,000 to his family. His share price has halved. I pointed out to him that perhaps his company was overvalued when it joined the AIM. He can’t sell his shares because there is no liquidity in the markets at the moment.
He also said he had lived his life in debt.
In a way he summed up the dilemma facing entrepreneurs. A majority will work very hard all their lives and it may only be during a short-run bull market (dot-com in the late 1990s, 2005-7 in the sub-prime era) that they stand any chance of creating wealth for themselves and their families.
The newspapers will always focus on somebody who has made it but for most it is the treadmill of life.
And the answer to the question which I have on good authority has been researched with great care:
If you earn £200,000 per annum it is 16 years. The trouble is few people do.
The news at the moment is dire and we are in one of the worst election campaigns for many years….and it will get worse. The economic news is bleak, unemployment is rising, tax revenues are below the Chancellor’s expectations, and so on…
BUT, what are the newspaper headlines saying:
‘Mandelson backs state investment bank plan’
‘National Business Awards back UK’s entrepreneurs’
These and many more may be indicating a turning point. The problem of the National Debt is being realised. The answer is not taxes, but growth. And the engine?: Enterprise Britain.
Our time is upon us……