What to do with £1 Million?!...

atush

Well you earned 82K but what costs did you have that you wont any longer? Did you pay 10% tax on your divs?

Basically, you need to search for, and read The Number thread. this will help you work out exactly how much you need to live on now you are no longer working. I assume it wont be 82K?

AS there is no risk free way to get 7-10% per annum every year without substantial risk. If you could get your 'pull' down to 6% or less you'd have a better chance.

In the meantime, i'd switch some of that cash to another bank and/or NSI until you decide (although I agree HSBC isn't going Anywhere) what to do.

and read read read read. Start with moneyvator and Mottley Fool investing for income

EdGasket

Diversify!

I hope that £1m is not sitting in a single bank account? Chap down the road sold his business which had been his lifetime occupation and had the whole lot, £0.5million, in Kaupthing when it went bust. He lost the lot in a twinkling.

gadgetmind

Stick it into NS&I income bonds ASAP is maybe easiest.

http://www.nsandi.com/income-bonds

jimjames

At least a portion could go into an income investment trust. Some of these have paid increasing dividends (income) for over 40 years.

jamesd

82K is too much from the amount we know about so far alone. However, in addition to the pension and property, you also have two state pensions that should end up paying each of you £8k, cutting the requirement to 66k when the state pensions start plus an extra 16k until then. That's still too high, at 6.6% after the state pensions start. To get a 90% success rate you need to at least get down to 6% of starting capital and given your age, 5% or lower would be more prudent but still higher than really desirable.

gadgetmind

I'm working on not much over 4% to start with and closer to 3% about 12 years later when SP comes along. And this is after all fees and tax.

coastline

Why not build yourself a house...make this your main home.
You could always trade down in the future.

Take £100,000 put £15,000 x 2 in cash ISA's and the rest on deposit at 1.3%....enjoy a little spend and invest the rest at say 3.5% income for starters.
£3600 a year x 2 into pension plans for 20 plus years.
IHT to consider in the future...

Dr._Shoe

Just three words:

Buy to Let.

EdGasket

Dr._Shoe wrote: »

Just three words:

Buy to Let.

Why give yourself all that agravation if you have £1m? You can just put it in National savings and take £20K pa for the next 50 years plus whatever interest has accrued.

gadgetmind

EdGasket wrote: »

You can just put it in National savings and take £20K pa for the next 50 years

You could, but what do you think £20k is going to be worth in 50 years? It'll probably have a buying power of 1/4 to 1/5th of what it does now.