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If you had £1,000,000?

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24

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  • deefadog
    deefadog Posts: 2,192 Forumite
    Part of the Furniture 1,000 Posts Name Dropper Combo Breaker
    I'd probablly get really fat and become an Alcholoic before i got around to investing it :)

    Seriously, no idea, i'd probablly ask the same quetsion here LoL
  • whambamboo
    whambamboo Posts: 1,287 Forumite
    tom188 wrote: »
    Why all the eggs in one basket, particularly when the asset class you are chosing will in many parts of the uk produce a yield considerably less than a bog standard bank account?

    this explains why those answering *don't* have a million pounds :)
    My policies are based not on some economics theory, but on things I and millions like me were brought up with: an honest day's work for an honest day's pay; live within your means; put by a nest egg for a rainy day; pay your bills on time; support the police - Margaret Thatcher.
  • EdInvestor
    EdInvestor Posts: 15,749 Forumite
    Easy.

    I already have a house, so I'd look for the money to provide a tax-free income.

    I would invest the majority of it in a portfolio of shares paying highish dividends.I'd expect an income of around 5% on that. I would keep the income within the basic rate band and that way I'd pay no tax on it at all - the tax credit that comes with the dividends pays the tax. :)

    I wouldn't trade these shares, so I'd pay no charges to brokers or IFAs. Occasionally, if I needed a bit extra, I might cash in some capital gains worth a bit over 9k, so that profit would be tax free too.

    The next question is what do you do with the portfolio after 10 years when it's worth 2 million pounds? :D
    Trying to keep it simple...;)
  • hammodt
    hammodt Posts: 412 Forumite
    Hi,

    I'd try and get a balanced portfolio:

    £200,000 in property - either upgrading my existing property for personal benefit and capital accumulation, or buying 1 or 2 properties for rental value.

    £100,000 in JPM Emerging Markets OEIC (Fund) - Has achieved very good growth recently, and I feel it is positioned to further grow over the next 3 years. Has returned in excess of 150% in the past 3 years!! By investing £100,000 3 years ago you'd now have a quarter of a million pounds!

    £200,000 in Schroder UK Mid250 Fund - This is a UK based fund, which provides returns by investing in the FTSE 250. This is a bit more risky than a FTSE 100 based fund, but if you have £1,000,000 then £100,000 is a fairly balanced part of the portfolio, and well worth the extra risk. Has provided returns of about 50% in the past year or so.

    £200,000 in a high interest savings account at the bank, hopefully at around 6%pa. This is a low risk investment, providing predictable returns. Good for income though if you're looking for income from the £1million.

    £50,000 I'd spend, probably on a nice car and a round the world cruise. Shame not to if you have the £1 million to spend!

    £50,000 I'd put on Zopa, the online lending exchange. The returns can vary on here, depending on which submarket you put the money onto, but you could get about 8% return from it (if you keep reinvesting it) plus Zopa bonuses which are avaliable from time to time! Again, a bit higher risk because the loans can default, but Zopa are good at chasing bad debts, and so far I've not had any bad debts on Zopa!

    £200,000 if you don't need it I'd put into some kind of pension product. It could be a self managed one, or a managed one, depending on your preferences. The big benefit is the tax advantages that investing in Pensions brings. Obviously, this is only suitable if you don't need the cash for a few years!

    And, that's the £1,000,000 spent already :(

    David!
    What shall I put here? :confused:
  • greenface
    greenface Posts: 4,871 Forumite
    Mortgage-free Glee!
    put it all into zark and watch the figures move
    :cool: hard as nails on the internet . wimp in the real world :cool:
  • newfoundglory
    newfoundglory Posts: 1,912 Forumite
    Part of the Furniture 1,000 Posts Combo Breaker
    I'd invest most of it, and live off the income and interest. I'd move to New Zealand, live in a amazing house in the mountains or forest... i wanna get the hell away from London and our crappy, overcrowded, underperforming and over-priced Tube system. The faster i see the back of red ken the better.
  • pattycake
    pattycake Posts: 1,590 Forumite
    Part of the Furniture 1,000 Posts Name Dropper Combo Breaker
    If I had a £1 million (who knows Ernie may do the business!), the first thing I would do, would be to give a nice big chunk to my two kids and their families. I know it would not be enough for them to give up work but it would make them secure.

    I would buy a bigger better house for myself and then........just enjoy.
  • s55shh
    s55shh Posts: 37 Forumite
    OK. not so hypothetical now. What if you were mid 70's and had over £5M to invest. Obviously nothing long term but bank rates not exactly exciting.
  • Lakeuk
    Lakeuk Posts: 1,084 Forumite
    Part of the Furniture
    300k in Property - (2 properties, income 12k before costs)
    400k in high yeild shares - (income 16k based on average 4% dividend)
    300k cash in high interest account - (income 15k, average 5%)
  • home_alone
    home_alone Posts: 755 Forumite
    give it to the kids before gordon gets his hands on it.

    gary
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