How would you invest 1 million pounds

doughnutmachine

somethingcorporate wrote: »

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

to be fair the original poster asked a financial adviser about property, and the answer given seems to suggest the financial adviser has limited experience of property investment...

i can assure you that property investment ranges from "widow and orphan" type investment to very high risk investment.

i also suggested the op speak to a surveyor if they were interested in property investment. a lot of the big surveyors do provide "real, structured long term investment advice". who do you think advises pension funds etc on property investment?

tim123456789

dunstonh wrote: »

Its not a very safe bet. .

IMHO ATM it's no less safe that putting the money "in the market", which is almost certainly what the advisors will advise because that is the way that they can get the biggest comission.

At least with property you can assess the investment yourself and not have to rely upon the advice of others.

If she lives near a suitable area and is prepared to do some work to enhance her investment, a portfolio of holiday properties could return up to 15% (you do have to buy "right" though)

dunstonh

IMHO ATM it's no less safe that putting the money "in the market", which is almost certainly what the advisors will advise because that is the way that they can get the biggest comission.

What commission? Which market are you on about?

At least with property you can assess the investment yourself and not have to rely upon the advice of others.

You can assess retail investments yourself if you want. Plenty of those on this website. The question is whether the individual is up to it or not.

If she lives near a suitable area and is prepared to do some work to enhance her investment, a portfolio of holiday properties could return up to 15% (you do have to buy "right" though)

"could" being the key bit of information. So "could" many other things.

tim123456789

jimjames wrote: »

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

If you really want low risk then a balance of different asset classes makes sense. All your eggs in one basket is just asking for trouble as you'd have no diversity or spare cash for income and you can't put a house inside an ISA for example.

Bearing in mind this is a windfall that she didn't expect to have, I don't see that this should be a consideration in deciding how to invest.

Presumably the individual already has a stream of "ready cash" which will continue after the investment of this lump sum is made.

tim123456789

atush wrote: »

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.

Except initial renovations, all of these things come out of the income, there's no need to save money back to cover them.

dunstonh

Bearing in mind this is a windfall that she didn't expect to have, I don't see that this should be a consideration in deciding how to invest.

It is a vital consideration.

Presumably the individual already has a stream of "ready cash" which will continue after the investment of this lump sum is made.

And you know this how?

petervasilev

I would definitely invest 2/3 of the budget in property in the UK. Which will provide me with a healthy monthly income. The rest of it I will invest in carefully chosen small companies if I manage to find some. Or perhaps if have some ideas about starting a company I'll do so. Also I would seriously consider investing in property abroad.

Forgot to mention that I'll be expecting 10% to 15% yearly return.

atush

tim123456789 wrote: »

Except initial renovations, all of these things come out of the income, there's no need to save money back to cover them.

They come out of cashflow later. But letting them initially (incl paying agents fees) and getting them inspected, paying taxes and stamp duty all come first before you get the rent in. So you'd need a cash flow to start. So, you couldn't use 100% of the money buying property.

Which a pretty stupid thing to suggest anyway. Property has a place in a well balanced portfolio, but to suggest someone invest in one single asset class is criminal. Or would be if you were paid to give advice.

tim123456789

dunstonh wrote: »

You can assess retail investments yourself if you want. Plenty of those on this website. The question is whether the individual is up to it or not.

Oh Yeah,

The MITS can really assess for himself whether Fidelity Small Cap (I madethat up) is going to:

a) Continually return a regular income of say, 4-5% pa

b) Go up in value over the next 10-20 years

For himself.

NOT!

All he can do is trust on some analyst’s opinion(s) that he reads in a newspaper(or 10).

And the experience of the past 5 years (not to mention the Dot CON boom) hasshown how much they are worth.

tim

innovate

You could always try Coutts for advice?

http://www.dailymail.co.uk/news/article-2252050/Coutts--Co-Lotto-couple-won-1million-want-compensation-Queens-bank-wrong-advice-left-just-10k-year-live-on.html