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What to do with £1 Million?!...
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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...
If you have £1m, why would you waste your ISA allowance on cash? Surely it is far more important to get as much into S&S ISAs where you will reduce any CGT & income tax liability.Remember the saying: if it looks too good to be true it almost certainly is.0 -
If you have £1m, why would you waste your ISA allowance on cash? Surely it is far more important to get as much into S&S ISAs where you will reduce any CGT & income tax liability.
Initially thats what I would do in the first year with a further lump sum on deposit for spending money.
I would invest the rest in a mix of Pensions...S&S ISA's...and other income paying investments using the yearly CGT allowance to add further to personal income.
Still think the house is a decent idea...0 -
I also sold a business, and at the tender age of 30.
We used a fair chunk of the change to buy our "forever" house, and the rest went into pensions and ISAs, which we'd already made a good start on. I've always invested in equities and bonds, and have only held enough cash for "rainy day".
I've often looked at rental property, but it's always stuck me as a business for the sloppy and uncaring rather than exacting and (hmm, a bit) empathetic people such as myself.
Ultimately you need to be comfortable with your investments, and to understand how all the parts work together, and what they deliver.I am not a financial adviser and neither do I play one on television. I might occasionally give bad advice but at least it's free.
Like all religions, the Faith of the Invisible Pink Unicorns is based upon both logic and faith. We have faith that they are pink; we logically know that they are invisible because we can't see them.0 -
I still don't get why you would put any of the money into a cash ISA.Initially thats what I would do in the first year with a further lump sum on deposit for spending money.
I would invest the rest in a mix of Pensions...S&S ISA's...and other income paying investments using the yearly CGT allowance to add further to personal income.
Still think the house is a decent idea...
Assuming ISA limit is unchanged after 10 years you'd have £150,000 inside ISAs and £850,000 outside.
What's the benefit of s&s inside an ISA compared to cash ? cgt is one aspect that doesnt affect cash. As far as I can see cash should stay outside and then use tax efficient wrappers for investment where possible.Remember the saying: if it looks too good to be true it almost certainly is.0 -
It might be an obvious piece of advice but it's important that neither you nor the people around you think of it as a windfall. You've been building that sum up over 20+ years and now liquidating it. Most people learn the lessons of investing as they build toward a sum like that. In your case, it might be worth accepting a 5 year period where you do the same, keeping the balance in protected cash (ns&i) and investing 100-200 a year.0
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Hi All,
I'd just like to offer an interim thank you to all who replied to my post so far.
There's already a lot here to get me thinking about, as well as leads to follow up on. Hopefully more ideas will be posted as people think of them, and I'll try to update you as to my own progress. It looks like finding a good return on this money is going to become a full time job for a bit, and there's going to be a steep learning curve -so thanks again for your input which already has gotten me a little way up this hill.
Kind Regards.0 -
Unless I was speaking out of turn earlier and you've already looked into this, even before the investment decisions, I hope you'll get advice on capital gains tax, entrepreneurs relief and whatever else.0
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I'm afraid paralysis might set in and I let a year go by without doing anything at all. the last thing I want to do is waste this amazing opportunity by blowing it, or investing it poorly - which is why I'm looking for some input from the real experts: You guys..
Congratulations on the sale.
I presume to build the business up you were working full time on it. Now you have a new job: you have to work full-time on understanding and managing investments.
Ask here, read a lot, learn, read this book from cover to cover several times BEFORE you jump into anything. http://www.amazon.co.uk/Financial-Times-Guide-Investing-Definitive-ebook/dp/B00NU59A3K/ref=sr_1_1?s=books&ie=UTF8&qid=1423749109&sr=1-1&keywords=ft+investing
You should also read this book before talking to IFAs.0
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