How would you invest 1 million pounds

System

I would buy 10 x £100,000 houses
and offer them for rent at say £600 per month.

doughnutmachine

saintlysimon wrote: »

Ideally she would like a decent return monthly, with very low risk, and for her money to be secure.

I have advised her that property is a very safe bet, but her financial adviser doesn't seem to agree.

What do you folks think?

How would you invest a million quid today?

And what sort of returns would you expect, and what sort of risk?

some property can provide a low risk return over decades, tesco and sainsburys are selling a lot of small supermarkets off. the leases are typically about 15 years long and the tennant pays for repairs and insurance. you would get about 7% a year...

as i understand it an IFA will not get commission for advising on property. you could speak to a surveyor, look at the commercial property auctioneers like allsop and see what you think

somethingcorporate

doughnutmachine wrote: »

some property can provide a low risk return over decades, tesco and sainsburys are selling a lot of small supermarkets off. the leases are typically about 15 years long and the tennant pays for repairs and insurance. you would get about 7% a year...

as i understand it an IFA will not get commission for advising on property. you could speak to a surveyor, look at the commercial property auctioneers like allsop and see what you think

A novice investor with £1m burning a hole in their pocket?

a sure fire way to make it worth £800k within a year.

They need real, structured, long-term focused investment advice.

Top of my NOT TO DO list if I had £1m is to listen to a bunch of strangers on the internet

Here are a few ideas courtesy of some bare naked ladies: https://www.youtube.com/watch?v=LHacDYj8KZM

Buffett

40% bonds (5-6% yield-to-maturity), 40% property/land & 20% equities (non-EU). I'd re-invest as much of the income as I could to help beat inflation ... buying whatever was 'cheap' - vs historical norms - at the time.

I'd still work to pay for my own home, contribute to pension/ISA, etc..

uk1

saintlysimon wrote: »

Hello

New to the site - just wanted to say thanks for all the wonderful info.

A close relative of mine has just come into quite a sum of money, and will have approx £1,000,000 of "free cash".

She is thinking that this money will last her a long time, and has spoken to a couple of financial advisers on how to get the best out of this money.

Ideally she would like a decent return monthly, with very low risk, and for her money to be secure.

I have advised her that property is a very safe bet, but her financial adviser doesn't seem to agree.

What do you folks think?

How would you invest a million quid today?

And what sort of returns would you expect, and what sort of risk?

Thank you

I think a load more questions need to be asked before she should consider any solutions.

Firstly is she married and is this windful going to be shared wth a partner?

What is the age of the person and do they have aspirations to pass a part of this windfall to a relative either now or on her death?

Another question is does she need it all and/or does she wish to gift any of the cash to anybody now? Does she need to protect the capital against inflation or can she play "safer" annd see it as a sinking fund? Does she wish to give any to charity? Does she have a mortage? Has she made a will?

These are just a few of the questions from many that need to be resolved before any solutions should be considered.

It seems to me that solutions can't be helpfully suggested until a bit more information is provided otherwise answers will just revolve around spread and safety whereas some critical options may be missed.

atush

Buffett wrote: »

40% bonds (5-6% yield-to-maturity), 40% property/land & 20% equities (non-EU). I'd re-invest as much of the income as I could to help beat inflation ... buying whatever was 'cheap' - vs historical norms - at the time.

I'd still work to pay for my own home, contribute to pension/ISA, etc..

The EU is supposed to be next year's equity winner.

atush

berbastrike wrote: »

I would buy 10 x £100,000 houses
and offer them for rent at say £600 per month.

Sorry, can't work. You'd need less houses as you haven't accounted for costs, renovations, void periods, commission, upkeep, taxes. If you spend 100% on your purchase price you have nothing left for these costs. you need contingency and cash flow money.

And that doesn't take into acct, all you eggs in one basket, falling house prices in some areas (aren't going to find places in london for 100K).

Thrugelmir

jimjames wrote: »

Interesting yet again on different perceptions of risk and less risk thought to exist in things you can see & understand yourself.

BTL is a business. With reward comes risk.

There's an unnerving amount of confidence in an asset class which has risen in price for quantifiable reasons. Yet very slowly and silently is sliding backwards.

DietIrnBru

I'd invest your money in Greece. It's really on the up.

Failing that, Facebook shares.

Thrugelmir

DietIrnBru wrote: »

I'd invest your money in Greece. It's really on the up.

Buy an island perhaps.