What would you do if you had £1m and you wanted to setup income generating asset(s)?

TheTracker

Superscrooge wrote: »

When you mentioned setting up income generating assets I was assuming you were closer to retirement age and looking at a safe level of retirement income to generate

I assumed the OP was hoping to retire now on the £1m. It's certainly doable, just look at RIT who is planning to retire on <£1m at age 43.

OP, what will you live in? Do you have another house, plan to buy a house, etc?

pizza_lord

TheTracker wrote: »

OP, what will you live in? Do you have another house, plan to buy a house, etc?

I will be living and traveling in different parts of the world as a digital nomad

Right now I am living in SE Asia

Sam_J12

It is boring, but the FTSE100 has a yield of over 4% at the moment, with the prospect of some capital growth in the future. It wouldn't be a bad bet for some of the £1m if you are looking for income, although capital growth over the last decade has been poor.

atush

I would invest in gilts, and income funds and good income paying investment trusts. Perhaps a small amt in commercial property, and some cash- to cover 2/3 years income plus a fund for buying opportunities (such as today perhaps).

jimjames

TheTracker wrote: »

P2P is regulated by the FCA. Like S&S it isn't subject to the FSCS.

S&S as funds are subject to FSCS.

I'd buy a selection of investment trusts. If you're not in the UK then you'll need to keep them unwrapped, if you are UK resident then move them into ISAs as you can.

Dan83

Buy property in a cheaper part of the country and rent them out, you could easy buy 10+ properties in Liverpool with £1million

Apodemus

Sam_J12 wrote: »

.... the FTSE100 has a yield of over 4% at the moment, with the prospect of some capital growth...

surely in some (many? Most?) cases the yields are only high because the calculations are against a much lower share price than when the dividends were declared. It might be a leap of faith to assume that these will be maintained at the next round of results (especially in some of the traditionally higher yielding sectors such as oils and mining).

AnotherJoe

Dan83 wrote: »

Buy property in a cheaper part of the country and rent them out, you could easy buy 10+ properties in Liverpool with £1million

That is a LOT of hassle especially when you are abroad, and you'll have to pay an agent to manage it and doubly so the hassle when on a very different time zone to where the agent is.

I'd be inclined to go with a mixed strategy as described by Linton a few weeks ago. And I'd put a toe into the peer to peer market as part of the income strategy. I'm about to have a go at that myself.

Pincher

Ex-pat so no capital gains tax when selling?


Good idea to reset the capitals gains base by selling now.


http://www.arla.co.uk/news/december-2015/house-prices-to-soar/


If you believe in the 50% increase by 2025, then you should buy another one.


Buy before April and you don't get hit by the Buy-To-Let stamp duty increase. I would get a 5 year (or longer) fixed rate mortgage to offset the rental income,


Check out Farringdon (Clerkenwell), the Cross Rail is scheduled to start running in 2018, and it has been said should give a 30% boost.

I have a £900k property in Clerkenwell, generating £30k rent a year. Went up by nearly £200k in the last two years: if you believe Zoopla.


Flats are relatively easy to hand over to a managing agent.
If you understand the idea is the capital gain, not the rent, then 15%+VAT management fee is a just a tax deductible against rent.


Sadly, they are planning to make ex-pats pay capital gains in the future.

bigfreddiel

Keep it simple, ignore all these 'experts', 'advisors' of any type.

I would put half into VLS100, and half into VGOV.

Take out 3% as income, if you need it, otherwise don't

That will perform as well as any fancy portfolio and save you thousands in fees.

Enjoy life

Cheers fj