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amazon1234 wrote: »I'm now starting to see the benefits of not using an IFA as opposed to using one, but as someone completely unititiated into this world I wonder if using one - at least in the short-term - would be wise, ensuring I wasn't tied to anything too long-term. Investing that sum of money by myself, no matter how much reading-up I do on the subject, seems out of my reach at the moment.
The benefits of not taking financial advice? Really? Unless you are an expert in this field there are no benefits of not taking advice.
You have been placed in a very fortunate position. Unless you have the necessary knowledge and expertise to manage that money effectively some kind of wealth management advice is needed. Without it you can expect your new-found fortune to erode sooner than you might think.amazon1234 wrote: »On a slightly diferent note, someone suggested investing more of the original sum and buying a house with a mortgage as a more financially astute solution.
It may well be in certain circumstances based on the fact that currently, mortgage interest rates a lower than the typical return on some investments. However, the sums you are looking at managing are way beyond 'someone suggested' or 'a guy down the pub said'. Take proper advice.0 -
The benefits of not taking financial advice? Really? Unless you are an expert in this field there are no benefits of not taking advice.
Saving on fees and independence are the big advantages of not going the IFA/FA route, of course the disadvantages might be making some really stupid decisions.
The OP's most important initial consideration is going to be taxation and an investments strategy should be built around managing those sensibly.“So we beat on, boats against the current, borne back ceaselessly into the past.”0 -
Retiring completely is the bad move there is a lot of time in the day to fill and it might as well have some productive use to enhance the returns.
Often learning and spending time managing your wealth is very productive use of time.
The other side is spend less so another alternative is to find things you like to do that can be done for free or earn money(hobbies that pay for themselves).
4% return(£80k on £2m), inflation proofed long term should be possible but you would want to build up a decent buffer and need to use tax free option to get the money out.
2 people with property no mortgage no kids should be able to live on £2k a month so plenty of scope to get the returns right over the first few years before ramping up the spends.
Pick the right area and you will not need £1m for the property and will have a decent buffer pot to kick start a high spend rate.
If you started with £2.5m at 30yo and drew down £4kpm it would last till 90yo at 0.5% over inflation 100yo with 1%.0 -
To get this amount someone has done well, are their advisors available?0
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It will but that's not what you asked for. You stated that you wanted the lump sum to grow. The plan should be that it shrinks and you spend the last penny the day that you expire and you die broke.
Why do you feel the need to protect the capital?
I wondered that as well, do you want to pass on a large inheritance to children?
My intention is to run down any savings to nothing - obvious fly in the ointment is exactly how long I will live;), but modelled the outcomes conservatively.
I'm not investment expert, so I employ an IFA and have been happy with the results.Yes I'm bugslet, I lost my original log in details and old e-mail address.0 -
bostonerimus wrote: »......
The OP's most important initial consideration is going to be taxation and an investments strategy should be built around managing those sensibly.
And that is where using an IFA could easily pay for the fees and have plenty extra left over.0 -
bostonerimus wrote: »Saving on fees and independence are the big advantages of not going the IFA/FA route, of course the disadvantages might be making some really stupid decisions.
The OP's most important initial consideration is going to be taxation and an investments strategy should be built around managing those sensibly.
I agree - and it's not something that the OP can sort out for themselves. If you have the skill-set you can DIY. If not, you need advice.
The OP by their own admission does not have financial acumen and any 'this bloke said' or advice given on a forum is high risk to say the least. Any costs associated with engaging a professional will be more than out-weighed by the surety and better returns that come from going to a professional.
I often hear people express a reluctance to go to a financial professional because of the fees. It really makes no sense whatsoever. You would not risk DIY-ing your car of you had no mechanical knowledge, you would risk doing you own conveyancing when buying property without legal expertise so why risk something as important as your wealth when you do not have the knowledge.0 -
amazon1234 wrote: »I'm now starting to see the benefits of not using an IFA as opposed to using one, but as someone completely unititiated into this world I wonder if using one - at least in the short-term - would be wise, ensuring I wasn't tied to anything too long-term. Investing that sum of money by myself, no matter how much reading-up I do on the subject, seems out of my reach at the moment.
I would say so yes, start with a good IFA (NOT a "wealth manager"), see how it goes, try to understand the rationale for what they are doing and then later on you may be OK to branch out by yourself. I've been DIYing for a long time but with that amount of money jumping in the deep end could be costly.0 -
getmore4less wrote: »To get this amount someone has done well, are their advisors available?0
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