∞ How to invest £400 million?

thriftyarek888

Say someone has come about in £400 million transfered in to their bank account. (please just consider this scenario on the face value)

UK banks offer only warranty of £85k each. So where to invest this safely in a way that generates good income p/a please?

The investor can operate on UK and USA market freely. ta

brendon

I'd be surprised if there was anybody here who could share this sort of experience. The question is, why is this of a concern?

grey_gym_sock

keeping the income down would be the main problem, as you'd be paying a lot of additional rate tax.

e.g. if you buy equities and avoid higher-yields, you might still be getting 2% yield, i.e. £8m a year, but additional rate tax would reduce that to less than £5m (a mere pittance! ).

jimjames

I'd take over an investment trust or two.

Aberdeen New Dawn at £232m so you'd still have £170m or so to pick up a smaller trust and get it run for your benefit.

IronWolf

In the short term it would have to be money market funds, which invest in short dated government securities. It is the only safe place to keep such a sum but you wont get any return on it.

Longer term I would spread it between property investments, equities, bonds, hookers... Etc

Thrugelmir

thriftyarek888 wrote: »

UK banks offer only warranty of £85k each. So where to invest this safely in a way that generates good income p/a please?

Buy a bank. Santander UK, market capitalisation of UK arm is only £337 million.

Voyager2002

I would just buy a small country, invest all tax revenues into the armed forces and take over my neighbours. Guaranteed: and since I would be in charge I could exempt myself from paying any tax.

thriftyarek888

Thanks for ideas gents and ladies. I am looking something simple such as put it around few bank account and live off the percentage even after taxes.

The situation is that someone is receiving this amount as a whole sum transfered in to their bank account as a gift. SO thats taxable in USA? I know in UK its not taxable.

SailorSam

It's funny you should ask that, only earlier today someone emailed me to ask for my help with their millions.
She's a Princess in the Royal family of a middle eastern Country and needs to escape with her inheritance for her safety from an impending revolution.

zerog

Yes it is taxable in the US, and not in the UK, but I don't think you can just transfer 400 million into most high street bank accounts... they seem to only be able to handle amounts up to say 10 million

You'd need a private bank account

CKhalvashi

This is where I wouldn't have a clue!

Of a total pot of roughly £6m (excluding my main company), I'm as follows:

Property: £1.5m (£116k total mortgages at sub 2%. £750k of this is my main home)
Cash savings: £500k
Shares: £3m-ish
2nd company equity: £1.2m, £500k debt (paid £1 for it, 2 years ago)

£400m, I wouldn't know where to start!

CK