What to do with £1million ?

[Deleted User]

Sometime within the next year after we have sold our business and several properties to downsize ahead of retirement we'll have around a million in cash.
Now,we could just stick it in a one-year notice account and get 1.75% interest and live off that and a few other savings and pensions until we decide what we want to do.
But is there anything else that's popular with someone in a similar situation.
We will already have several rental properties providing an income and a reasonable share portfolio.
Any suggestions gratefully received.
Thanks in advance,
Tom.

Prism

Its probably worth getting professional advice to make the best out of it.
I expect (hope) to have about that amount in a few years time. I am planning to split it between equities and bonds/cash/savings accounts. Then each year take a % income from either one or other pool. I am planning on roughly following a book called 'Living off your money' by Michael H McClung. Do some searches for glide paths and variable withdrawal rates to get an idea.

Linton

1) Decide what you want the money for eg immediate spending, immediate gifts, inheritances, long term income. How much and when?
2) If you dont have an emergency cash fund of up to several years income, set one up
3) Dont have too much faith in advice from the net
4) Consider seeking professional advice from an IFA - problems with tax, unbalanced diversification, inflation and sub-optimal investments that fail to meet your objectives could well cost much more than the cost of advice.
5) Get your objectives, strategy to meet them and plan clear before you start thinking about investments - which particular investments you choose is about the least important factor you have to decide to make optimal long term use of the £1M.



If you live off the £17500-tax interest from £1M for a year you could well lose £20K-£25K from the capital in real terms thanks to inflation.

fred990

Same amount plus 0.2, what to do with it was/is a minefield. Most questions here were met with questions and riddles.
Most of it is now with Vanguard. Split among three funds.
Haven't touched it in over four/five years, doing plenty well enough for me!

melanzana

Honestly it might be a stealth boast but to be fair if one is in the mix for such a bonus, professional advice is the way to go here.

And I am sure OP knows this too.

Why ask randomers on the internet?

Curls2208

Spread the love. ;-) Use it to help the needy.

chucknorris

Deleted_User wrote: »

Sometime within the next year after we have sold our business and several properties to downsize ahead of retirement we'll have around a million in cash.
Now,we could just stick it in a one-year notice account and get 1.75% interest and live off that and a few other savings and pensions until we decide what we want to do.
But is there anything else that's popular with someone in a similar situation.
We will already have several rental properties providing an income and a reasonable share portfolio.
Any suggestions gratefully received.
Thanks in advance,
Tom.

I'm in a similar position, I'm 61 now and I want to sell most of my property probably in about 4-5 years, I'll keep something in property just to maintain portfolio diversity. The retirement portfolio that I'm currently favouring is something like this (which excludes the value of our unmortgaged home):

40% equities
25% bonds/cash (mainly bonds)
25% fixed pension
10% unmortgaged investment property

alanq

Deleted_User wrote: »

...we'll have around a million in cash.
Now,we could just stick it in a one-year notice account and get 1.75% interest...

One account would be risky. FSCS temporary £1 million cover only lasts for 6 months and even then only covers certain life events.

https://www.fscs.org.uk/your-claim/temporary-high-balances/

dividendhero

melanzana wrote: »

Honestly it might be a stealth boast but to be fair if one is in the mix for such a bonus, professional advice is the way to go here.

And I am sure OP knows this too.

Why ask randomers on the internet?

A couple of points..

(1) Regarding the "stealth boast", £1m isn't an unusual amount - over half a million people in the UK have this much cash and I'm sure a few on here will.

It's quite relevant what the amount is - advise for £1m is far different for £100k

(2) The people on a savings and investment forum are hardly "randomers on the internet". I class myself as a knowledgeable and experienced investor, but I find some vaulable info on here

melanzana

dividendhero wrote: »

A couple of points..

(1) Regarding the "stealth boast", £1m isn't an unusual amount - over half a million people in the UK have this much cash and I'm sure a few on here will.

It's quite relevant what the amount is - advise for £1m is far different for £100k

(2) The people on a savings and investment forum are hardly "randomers on the internet". I class myself as a knowledgeable and experienced investor, but I find some vaulable info on here

No problem.

But in reality, OP will never rely on randomers either, might get some heads up, but will hopefully take that to their FA.

[Deleted User]

Thanks for the advice.
I've never used financial advisors since the dawn of the internet - I can find all the information I need online and then make an informed choice using my own money.
But I'm interested in what other people in a similar position would do.
Medium-term I shall hold as much cash as possible in advance of what I think is the next global economic re-adjustment,sometime in late 2020/21.
Then I'll buy bank shares.
It's what I did last time.Barclays in particular.
Buy-to-let also remains an option.