£5m in the bank isn't £100k a year for fifty years. You can live off the interest without ever touching the initial £5m! Bellamy is a decent guy who has done lots for charity and young players. Hope he overcomes the adversity.
On a modest lifestyle maybe. Footballers get used to extravagant things while on top of the world and might not know how to live modestly after bathing in champagne.
Having dealt with them I agree. What is very popular with footballers at present is training shoe collections, kept in glass display cases and never worn. Some of them spend thousands on one pair, completely bonkers.
Who was it on here who used to buy new shoes constantly and had dozens of trainers. Was it @Sucky ? Maybe sucky is a professional footballer on the lowdown.
No, but you can't expect someone who has been a millionaire since they were a teenager to know how to live sensibly. You've probably heard about how half of all lottery winners end up bankrupt in three years. They don't know how to adjust "up" sustainably, I'm sure footballers have a horrid time adjusting "down" too. Any large income level change can be hard to adjust to. There were studies in the US where homeless people would be given a large sum, like $10,000 to see if that could help them become sustainable and move them out of homelessness. Unfortunately 100% of them ended up right back on the street in two months. It seemed like a massive amount that they could never possibly be spent to a homeless man. I fear our poor millionaire footballers are pretty much the same. All their career they could spend whatever they want and it doesn't make a dent. Once their careers end, they still spend thinking the money will be there forever and suddenly it isn't.
Here in the US you could get 2-3% typically from a large money account in a bank bank... So $150k from $5mill which is reasonable. £5 mill in UK I'm sure you could probably do better because banks give better rates. A decade from now £150k might not be as attractive as it is now, especially if inflation keeps up, so you probably would be smart to not spend all your interest money. If you could live on 2/3rd of your annual interest you base account could grow and stay ahead of average inflation. Keeping that much money in a bank might not be the wisest option though anyway if you have £5mill spare. I'm sure Garlic Klopp doesn't leave £5 million blobs in various bank accounts, he invests all his spare millions in higher earning pursuits.
Most banks (in the US anyway) will give higher interest rates to depositors with larger accounts. Small accounts are lucky to get 1%. I don't know if UK would be different. There are places you can earn higher return than banks though if you have a lot of spare money and don't need it to be completely liquid. Even a simple, no risk, one year CD will get your over 4% interest.
Maybe at fancy banks can do more. But most banks here can either do an isa but can only put in 20k a year tax free. And most savings accounts will be X interest uo to a certain amount and then a lower % for anything over that. Better to put the money into property or something if you have that much cash or put it into other investments
Yeah, it's a case of you say, "I have a lot of money and want to speak to a bank manager about keeping my money here" and they take you into a private room and set up a special plan just for you that the regular hoi polloi can't get. There's personalized plans for the rich... And there's generic off-the-shelf plans for the rest of us.
Over fifty years, the interest will account to more than the initial £5m you alluded to. Point and case... So the interest alone would be more than the 100k per annum MITO suggested they'd survive on for fifty years eh... Point and case mkII Apology well and truly accepted btw
Yes, if you only spent 2/3 of the interest you could live comfortably (but not excessively lavishly) and still grow your best egg so you will get more in interest the next year... And more the next year, etc. According to my googling a 1 year CD (which is still a low risk investment) is a 4.33% return (in the US, not sure UK). 4% of £5mill is £200k. If you kept £130k first year for living expenses and reinvested the remaining £70k back into your nest egg in year two you get £220k interest... If you kept investing 1/3 of the interest accrued back into the nest egg and living off the other 2/3rds the amount you get to spend each year would increase by ever larger numbers. You can easily take £5mill and live off the interest comfortably.. after a while as it grew you could even live lavishly off it, as long as you were careful to not spend more than the interest you earn
There's a reason why rich people keep getting richer, unless they're idiots. Of course if you have money it can be made to work for you - what else is capitalism for?
