Where could you store millions safely?

Shanda66

HSBC and National Savings. Remember that the Financial Services Compensation scheme has several different elements. You can have cash of 50k 100% protected. You also have the first 30k of investments 100% protected and the next 18k 90% protected. Life based bonds are protected 100% of the first 2k and 90% of the rest. It's therefore possible to have most of your money with one institution nearly completely protected.

With all the madness of the last few months it's very easy to forget that Panorama practically told us last August which banks were at risk and high lighted the fact that UK banks with the exception of HSBC had higher levels of debts that cash - that's madness for a bank to operate in that way.

Offshore accounts - the jury's still out as to how and what they're covered by so I would proceed with caution.

1974

jon3001 wrote: »

You need to think about your investment objectives e.g. income (how much) and risk vs capital preservation.

The less income you need from your portfolio then the more cautiously it can be invested but you'd still need to consider inflation. You current cash/gilts portfolio is ultra-conservative and would probably support about a 2% drawdown if inflation falls back to the government's target of 2%.

Well, I probably over reacted with the gilts but did that last week when RBS was tanking (since otherwise all the money was in one fund). It's only six months.

The whole point of the cash being where it is now is that I haven't decided how much I want to risk. I haven't even really got used to the fact that I have the cash. With regard to income - I am still bringing in a very good salary, and I still have shares in the business with a current market value of >£2m - so my day to day is covered by my salary. Easily now that there is no monthly mortgage payment.

cheekykid

1974,

I believe one of the best ways to invest your cash at this uncertain times is the house market. Investing in houses almost guarantees that your money will grow steadily over a 10+ year period. and unlike cash you can't "lose" your house. Buy 2-3 houses in key upermarket areas known to have high demand, rent them, give a 7-9% fee to an estate agent to manage them and sit back and relax. That's what I would do.

jon3001

1974 wrote: »

The whole point of the cash being where it is now is that I haven't decided how much I want to risk. I haven't even really got used to the fact that I have the cash. With regard to income - I am still bringing in a very good salary, and I still have shares in the business with a current market value of >£2m - so my day to day is covered by my salary. Easily now that there is no monthly mortgage payment.

So that's more info to give your advisers for consideration:
1. No income requirement from portfolio.
2. Large portion of net worth held as equity stake in single small(?) business. [usually regarded as very high risk component]
3. Existing exposure to property market.

They should consider all your holdings when making recommendations for the other £3M and balance it out against your risk profile.

cheerfulcat

1974 wrote: »

I am still working full time (and it really is full time - and have no plans on stopping I enjoy it too much), and have two young children so I don't really want to spend my time playing the markets. I guess I just want to return above inflation and spend it sensibly. .

You don't need to " play the markets " as such, but you do need to know what the people advising you are talking about.

The only extravegance that I have thought about is that I have decided that I never want to fly in the back of a cramped plane again. Might sound a bit snobby but I've always hated being not having any room on long haul flights

Not snobby at all. It's awfully nice turning left when entering...it helps to be a member of a loyalty scheme - Virgin or British Airways ( the latter via Tesco points ). Just because you're a millionaire doesn't mean you have to ditch MSE ways...

a7man

A well diversified and managed stockmarket portfolio is going to crush every other investing method over the next 10 yrs, even a bit of venture capital investment would be a good bet once the markets bottom out and new businesses begin to thrive again. Saying that - if you are extremely risk averse then all you require is investments that will keep the real value of your money over time by beating inflation. Your 5.8% bond isnt going to do that as RPI is running around 5%.

Money_Grabber13579

Deleted_User wrote: »

If I won 7m on the lottery I'd split it up into 14 banks with 500k each. If one of the banks went bust I'd still have 6.5m :rolleyes:

Or rather 6.5m plus your 50k! :beer:

Money_Grabber13579

I'd reckon millionaires have little more in their bank accounts that the average working person would have, it would all be tied up in investments like shares, property etc. (Or a super douper 7 star holiday home in Dubai.)

donnykebab

Zimbabwe ?

Money_Grabber13579

donnykebab wrote: »

Zimbabwe ?

:rotfl: Easy way to become a millionaire? Stick 50p in Zimbabwe.