If you had £1,000,000?

deefadog

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

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

EdInvestor

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?

hammodt

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!

greenface

put it all into zark and watch the figures move

newfoundglory

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

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

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

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

give it to the kids before gordon gets his hands on it.

gary