Won A Million - Clueless

getmore4less

if investing you need that 3.3% + inflation to maintain the value off that income.

First thing you need is a proper budget and at least a 10 year plan.

With £30k of debt there has been some LBeyondYM and you need to be sure you don't fall into the trap again.

Clearing the mortgage and debt will give you more disposable income from your current income, with mortgage rates so low it may be worth keeping that and investing

At mid 40 you have another 30+ years to fund and 4 kids for 15-20.

NO kids I think you could have managed but with 4 kids working another 10 years will improve the overall picture a lot.

Malthusian

Norman_Castle wrote: »

Steady on, its only a million. To avoid being overwhelmed spread the lifestyle changes. Tescos to Branstons to Heinz.

Indeed. Never forget that switching from Heinz to Tescos brings more misery than switching from Tescos to Heinz brings happiness.

Norman_Castle

Malthusian wrote: »

Indeed. Never forget that switching from Heinz to Tescos brings more misery than switching from Tescos to Heinz brings happiness.

And if you're happy with Branstons the money will last longer.

gary83

Congratulations, it’s a nice problem to have! Don’t have much else to add except well done on keeping your mouth shut on your win, that must be hard some days. I think your doing the sensible thing in not blowing it all on cars & holidays but thinking about what to do with the cash as although you’re an overnight millionaire it’s probably not enough to comfortably provide for you and your family for such a long period it is a massive unexpected bonus though.

Purely out of morbid curiosity do Camelot provide much support these days, or is it a case of here’s a cheque can we use you in our advertising? How long has you been playing for?

colsten

luckylucky11111 wrote: »

Have a pension in work which they match

What about your wife? What pension has she got?

atush

Just because they match doenst mean you shouldnt pay in more.

cjking

Below is a link to a page on another investment web site that covers the exact topic of how to deal with a windfall. The site is American, but it should be possible to interpret the advice.

Do nothing rash. Set aside one year's living expenses[note 2] and place the rest of the windfall into low risk investments (FDIC insured accounts, money market funds, treasury bills) for one year. As it may take as long as five years for the windfall recipient to adjust to a new life, this pause provides a chance for emotions to cool, helps avoid impulsive behavior, and, if warranted, allows the recipient time to put together a team of professional advisers.

https://www.bogleheads.org/wiki/Managing_a_windfall

cjking

Switching into fantasy mode and quickly dreaming up the simplest one-sentence idea I can think of, I would pay off debt, including the mortgage, and invest the remaining 820K in VHYL, and plan to spend only the dividend income for the time being, which should be about 30K a year, before tax. (Obviously taking various steps to minimise tax, such as splitting between spouses and making maximum use of ISA allowances.)

My feeling is that you will make the most of your money if you spread the spending of it evenly over as many years as possible. I would be wary of any big up-front irreversible steps.

downinja

I suspect you could retire, but would you want the same lifestyle you have at the minute?

40 year old

£1mil over 25 years = £40k which is basically what you earn

Invest it well enough to deal with inflation, pay no interest on loans/mortgage and you could manage.

But would you want to? I wouldn't.

I would rather carry on working and be on the equivalent of £80k, nicer house/car/holidays.

Fodderlink

Well done to start with!

As I haven't won that kind of money I wouldn't know what you are currently feeling like but I would try and pretend I hadn't won at all.

What I would like to try and do is after paying off my debt is sticking it in an NS&I bond (insured to £1million) and take a year to think what is best for me and my family.

Then when you are ready to use the money wisely seek advice from an IFA.