Just yesterday I said much the same, recalling a time when I took my mum’s building society book to be updated and her £10,000 had £1,000 added for the past year’s interest (Northern Rock c. 1981).
" I could just about live comfortably on 10% return", I said.
This was in a conversation about how many ordinary punters have been forced into the stock market just to get a reasonable rate of return on their savings - or try to - but often don’t understand the risks. The conversation came up after JackD copied a post from someone on the LSE boards reporting sitting and crying after VOD’s recent demise, saying he was selling everything and going back to work.
When i thought about it later, it isn’t quite true that I could live off 10%. I would be fine for a while, just, but inflation would soon take a toll. This is what happens when you retire early then decide to start a family a couple of decades later which you hadn’t allowed for.
I never thought we would have such an extended run of a weak pound either, causing stays abroad to be so much more expensive than anticipated.
BUT, with a nice lump sum earning 10% it would take the pressure off my stock market doings. I quite enjoy it, but I have too many holdings and keeping up to date is a lot of time which I don’t always have these days with a young child - or family illnesses.