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amazon1234

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[Deleted User]

You're going to need to add just a tad more detail...

laidbackgjr

Ball park figure assuming that you wish the capital value to keep growing at least in line with inflation would be around 1% - assumption being growth of around 4% and inflation around 3% being realistic, depends upon your risk appetite.

1% would give you £40,000 income per year

Linton

A rough estimate for pensions is 3.5% of the initial pot increasing with inflation to provide long term sustainable income. This is of course highly dependent on you having some experience of investing. I suggest you consider getting professional advice for your overall strategy, investing, tax optimisation, and inheritance planning.



Have a play with http://www.cfiresim.com/. It will give your some idea but as it is based on US data during a period when the US was rapidly expanding perhaps you should regard the results as being somewhat optimistic.

JoeCrystal

amazon1234 wrote: »

Cheers for that. We've been put in touch with a wealth manager who will be advising us on how to manage the investment portfolio when the money arrives but until then we just wanted an idea. I suppose we were thinking: would £2 million be enough to secure an annual income of around £60k-£70k without damaging the lump sum. From what you said it seems possible (we had 4% in mind) but the previous poster suggested £40k.

Then, make sure they are proper IFAs. Not like say St James Wealth Management. Also, shop around to see a few more.

AnotherJoe

laidbackgjr wrote: »

Ball park figure assuming that you wish the capital value to keep growing at least in line with inflation would be around 1% - assumption being growth of around 4% and inflation around 3% being realistic, depends upon your risk appetite.

1% would give you £40,000 income per year

? Please explain your maths. I make 1% of £2m = £20k


2% would be £40k
3% (£60k/annum) would most likely result, long term, in no drop in the £2M and most likely a rise.
But for someone with no financial background or experience managing funds of that size, I would suggest you engage an IFA.

Clive_Woody

amazon1234 wrote: »

Ooh, what's wrong with St James?

Do a quick search to see how they are discussed on here. Very high fees and restrictive offerings if I remember correctly plus long tie-ins.

There are much better, lower cost, options. As mentioned you need to talk with an IFA, ideally several to get an idea of costs and whether you get on with them as it will be a long term relationship and you have to trust their advice and be happy/comfortable talking with them.

I would suggest once you have some ideas you run them by folk on here for critique as there are a lot of knowledgeable posters who can at least offer opinions for your to consider before taking the plunge. You are coming into a considerable amount of money and need to take your time deciding what to do (and not get sucked in by companies like St James without considering the alternatives).

amazon1234

That's more in line with what I thought based on a (relatively quick) investigation. We will definitely be using an IFA - at least initially - and having quickly Googled St James (the ones recommended to us!!) I see they're not up to snuff. Now comes the challenge of finding a reputable IFA...

amazon1234

Thanks for that. It's all quite confusing for someone without any experience of all this but you've already all been very helpful.

AnotherJoe

amazon1234 wrote: »

Cheers for that. We've been put in touch with a wealth manager who will be advising us on how to manage the investment portfolio when the money arrives but until then we just wanted an idea. I suppose we were thinking: would £2 million be enough to secure an annual income of around £60k-£70k without damaging the lump sum. From what you said it seems possible (we had 4% in mind) but the previous poster suggested £40k.

Nooooooooo! Do not use anyone who calls themselves a Wealth Manager. The only wealth being managed is theirs. If they have the initials SJP I suggest an even wider berth, very very expensive.
To put it in context, if they take 2% overall and you are getting a growth of (say) 6%, thats one third of your wealth dissappearing into their pockets. If its 2% 4%, then HALF your earnings are being lost. Thats £40 thousand pounds a year. Over (say) the next 40 years, that would be more than ONE MILLION POUNDS you would lose. One million pounds you could have had yourslef.

You should be able to get a good IFA that doesnt have flashy offices and glossy marketing literature at substantially cheaper than that. Like 0.5%.



You need an IFA. Where the I stands for Independent.


An FA (without the "I" ) can/will only sell you their stuff. You want someone who can look at all investments.

JoeCrystal

amazon1234 wrote: »

That's more in line with what I thought based on a (relatively quick) investigation. We will definitely be using an IFA - at least initially - and having quickly Googled St James (the ones recommended to us!!) I see they're not up to snuff. Now comes the challenge of finding a reputable IFA...

Have a look at https://adviserbook.co.uk/

Tick "confirmed independent" and other options as needed. That will help you to find the local ones whose independent status are confirmed.