Problems I will get no sympathy for Part 1

TR303808909

Okay be gentle,

I am with my business partners about to sell a company we have taken much blood sweat and tears to build, so try to hold the lucky b^&*d speeches for a while.

Some background

My dad was an IFA half his life and I did a little in pensions, some equities etc. but UK property has been the kindest to me and I used it to both build wealth and provide the funds needed to invest in my business interests when required.

We have a couple of BTL places on interest only mortgages with great yields and a family home that will be our base.

The sale and company are based in the USA and I will receive around $2,400,000 before tax and whilst i am not ready for retirement some inevitable lifestyle changes will take place.

My initial request (perhaps of many) for thoughts and advice is as follows:-

Part of the lifestyle change is to fund a holiday home in Italy

1) Should I 'hold' the money in a US account and transfer some funds to a Euro account in order to do the transaction (circa 400,000 Euro)
2) What is the best way to transfer large somes without incurring big fees?

My investment choices with what remains will be medium to low risk with the idea of maximising retirement income in circa 15yrs

Initial thoughts?

gadgetmind

Well done on selling the company. I sold my first company at age 30, and while it was nothing like enough to retire on, it seriously derisked everything that came after.

Regards where to hold the money, it's down to currency risk and what protection you can get from banks failing. Remember Cyprus?

It terms of a retirement pot, I suspect that the income on what remain after tax might not match up to the lifestyle you want, but you do also have the BTLs. You also need to think about your tax situation in retirement. I guess the BTLs will eat a lot of (or all) your allowances, so you perhaps need to think of dividend income for the bulk.

You could just buy a wide selection of Investment Trusts (in two names?), let the dividends roll in, and relax.

le_loup

I have $2.4 million but I can't afford professional advice. What an I to do?

grey_gym_sock

it's good to know as much as possible before taking professional advice. and not everything needs professional advice, anyway, if you are prepared to put a bit of effort in.

TR303808909

le_loup wrote: »

I have $2.4 million but I can't afford professional advice. What an I to do?

LOL not what i am thinking, but like everything these days information from multiple sources could yield the un-expected and ideas and thoughts that you don't get sat in some office somewhere.

I have a bank that likes to call me all of a sudden when i get a big dividend but i thought i would canvas some opinion also.

TR303808909

my thoughts exactly

gadgetmind

TR303808909 wrote: »

information from multiple sources could yield the un-expected and ideas and thoughts that you don't get sat in some office somewhere.

Well, quite. And I'm really not sure that more than a small portion of the decisions to be made here are ones that an IFA could help with.

atush

Gah, this forum is a problem some times. Huge post that was wiped.

Anyway, I think you need tax advice from a major firm with both US/UK tax specialists. There could be ways of paying/structuring this that could save you tax/cgt.

Does the US company pay into an executive pension for you? Could it?

Where will you be resident when the sale goes thru? After? If you moved residence to a tax friendly country it could help.

gadgetmind

The Motley Fool forums may also be a good place to ask. The forum software is antediluvian but there are many people there who've been around the block a few times and have a few bob (and knocks!) to show for it.

Sophie-1

With the amount of money you are talking you would be better to get professional finance and tax advice.

David_Aston

Can't wait for Part 2 of this post!