Not a Joke

conjam

Hello all- this is my first post but have been an avid reader of these forums for years- myself and my wife are in the process of selling our business which will be concluded in march-June. I have booked into meet an independent financial adviser in January (advice gained from this site) we will be getting 2 million for the sale once we pay 10% tax and brokers fees we will have 1.6 million left. We have a 200k mortgage and will pay that off but no other debts. My wife works full time in the business and her wage will cease- my wage is currently earn £2700 per month but was hoping to go part time (as a minimum)

I like the term forewarned is forearmed so is there any suggestions on how we could invest the 1.3- 1.4 million to ensure a good yearly return. Or any suggestions you would make that you would expect an IFA to suggest (if only to prove their quality). The reason I am posting on here is very simple – some people really know their stuff on this site and I like range of options

Thank you for your time

Hominu

Perhaps the best advice would be to talk to multiple IFAs and pit them against themselves. I don't mean putting them in a ring and shouting "Fight!", I mean collect data from one and ask the other about the same products, etc.

You still need to have a sound plan in your head first though before even approaching one. You must know the end goal for example? How much you want back each year to live off, etc.

For any further advice you need to give us much more information.

Wilkins

First off, any IFA will want to know something about you and your family, attitude to risk, financial expectations etc. No one can really make any useful suggestions without a bit more information.

plinth

I really like that idea of going to a few it was something I was considering as a fact finding mission. I think we don’t mind a risk but would like a mix of low-middle and high risk investments- we are looking to stay on the same income some my wife currently takes £2000 a month and I take £2700- my wifes wage will be gone and i really want to quit work so we need £56k take home a year. We can set up a company to ensure we get paid our full dividend allowance which is how my wife get paid at the moment

Is that enough information? I can provide more if required

innovate

I just asked a bunch of Qs in another thread : http://forums.moneysavingexpert.com/showpost.php?p=64209452&postcount=2

innovate

plinth = conjam?

Fruit_and_Nut_Case

innovate wrote: »

plinth = conjam?

Forgot to log out and log in again?

longtermplanner

plinth wrote: »

so we need £56k take home a year

Need? Have you looked at what your likely expenses will be after you stop work?

The mortgage will be gone. But what will you do with your time? Gardening and walking the dogs are pretty cheap - yacht racing or touring around Europe's michelin 2* restaurants in style isn't.

You need about a 4% return to get to that sort of income. Not impossible, but not trivial either. To cope with inflation, and assuming the two of you aren't near normal retirement age, much of the investment will have to be in equities or property so there is going to be risk involved.

Are you handy? Do you think you could manage several BTLs nearby, doing much of the work yourself and saving agents fees?

If you were happy that if push came to shove (ie your investments hit a bad patch) you could manage happily on 30k, then the task would be easier.

Things that I would want to include in the plan:

- say 40% into BTLs, 40% into Equities, 20% in bonds
- of the equities, half into UK blue chip high yielders, rest divided between USA, Europe and emerging markets
- plan to B&B enough shares each year to use both your ISA allowances, bringing more money into tax shelter
- look at purchasing extra years NI payments towards your state pensions.

doughnutmachine

plinth wrote: »

I really like that idea of going to a few it was something I was considering as a fact finding mission. I think we don’t mind a risk but would like a mix of low-middle and high risk investments- we are looking to stay on the same income some my wife currently takes £2000 a month and I take £2700- my wifes wage will be gone and i really want to quit work so we need £56k take home a year. We can set up a company to ensure we get paid our full dividend allowance which is how my wife get paid at the moment

Is that enough information? I can provide more if required

Congratulations on managing to sell another business for over a million! I see in January 2012 you managed to sell a business for £5m.


https://forums.moneysavingexpert.com/discussion/3760379=

joerugby

longtermplanner wrote: »

Need? Have you looked at what your likely expenses will be after you stop work?

The mortgage will be gone. But what will you do with your time? Gardening and walking the dogs are pretty cheap - yacht racing or touring around Europe's michelin 2* restaurants in style isn't.

You need about a 4% return to get to that sort of income. Not impossible, but not trivial either. To cope with inflation, and assuming the two of you aren't near normal retirement age, much of the investment will have to be in equities or property so there is going to be risk involved.

Are you handy? Do you think you could manage several BTLs nearby, doing much of the work yourself and saving agents fees?

If you were happy that if push came to shove (ie your investments hit a bad patch) you could manage happily on 30k, then the task would be easier.

Things that I would want to include in the plan:

- say 40% into BTLs, 40% into Equities, 20% in bonds
- of the equities, half into UK blue chip high yielders, rest divided between USA, Europe and emerging markets
- plan to B&B enough shares each year to use both your ISA allowances, bringing more money into tax shelter
- look at purchasing extra years NI payments towards your state pensions.

40% into BTLs? Surely better to invest more in businesses where others do the work?

kidmugsy

How old are you both?

Are you prepared to take the risk of investing in VCTs to keep your tax bills down? How would you plan to exploit your annual CGT allowances to let you take pseudo-income as untaxed capital gains? "£56k take home a year" is obscure: do you mean net or gross of tax? Are you prepared to contribute to pensions in this tax year?

Above all, would you be happy to own a portfolio aimed at generating your desired income, roughly index-linked against inflation, and let its capital value wander where it may? Or are you determined to preserve the capital value?