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£1,000,000 investment

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Comments

  • ColdIron
    ColdIron Posts: 9,638 Forumite
    Part of the Furniture 1,000 Posts Name Dropper Photogenic
    To stay within the FSCS protection limits you'll need to open 12 accounts with organisations that don't share a banking license. You'll be scraping the bottom of the barrel on rates long before you get to the twelfth
  • investa
    investa Posts: 11 Forumite
    12 accounts, that's why I am stuck at 1% in NS&I !
  • Alistair31
    Alistair31 Posts: 970 Forumite
    Seventh Anniversary 500 Posts Name Dropper
    What a lovey “problem” to have.
  • Keep_pedalling
    Keep_pedalling Posts: 19,264 Forumite
    Ninth Anniversary 10,000 Posts Name Dropper Photogenic
    You really should be looking at gifting to your children now. A £1M prize puts your estate in IHT territory, so leaving gifting for a few years increases the risk of any gifts failing the 7 year rule.
  • Alexland
    Alexland Posts: 10,178 Forumite
    10,000 Posts Seventh Anniversary Photogenic Name Dropper
    investa wrote: »
    12 accounts, that's why I am stuck at 1% in NS&I !

    In addition to gifting, Lifetime ISAs and pension wraping I suggest it's worth trying to take the time to see if you could get comfortable with a sensible level of investment risk for some of the money. In particular over a long enough period of time the probably of ending up in an absolute loss position is small and the probably of ending up with a better than cash return is high. The probably of loss goes down the longer you hold an investment.

    Alex
  • dunstonh
    dunstonh Posts: 118,553 Forumite
    Part of the Furniture 10,000 Posts Name Dropper Combo Breaker
    After I had done some research I kept on reading that the market would see a correction or crash.

    There are always corrections and crashes coming. That is the nature of markets. You just don't know when.
    A year later, I still have the money but in real terms I have lost many thousands of pounds through inflation.

    And during that period, we also had a market correction and you would still have been valued higher today if you had invested.

    Every option has some risk. The lower the investment risk you take, the greater inflation risk and shortfall risk becomes. It is all about taking sensible risks.

    You have various allowances and reliefs open to you to utilise on an annual basis and you need to consider short, medium and long term as well as estate planning potentially. So considering solutions before knowing the issues and requirements is doing it back to front.
    I am an Independent Financial Adviser (IFA). The comments I make are just my opinion and are for discussion purposes only. They are not financial advice and you should not treat them as such. If you feel an area discussed may be relevant to you, then please seek advice from an Independent Financial Adviser local to you.
  • ffacoffipawb
    ffacoffipawb Posts: 3,593 Forumite
    Part of the Furniture 1,000 Posts Name Dropper Photogenic
    Zero_Sum wrote: »
    Personally if I was 61 with £1m in the bank (having already got house & workplace pension) i wouldnt be quibbling over 0.25% here & there. I'd be enjoying my unexpected windfall travelling the world as you wont have that long left to enjoy it so no point being stashed in bank/investments

    How cheery, lol.

    Don't join The Samaritans. :)
  • Prism
    Prism Posts: 3,834 Forumite
    Seventh Anniversary 1,000 Posts Name Dropper
    investa wrote: »
    12 accounts, that's why I am stuck at 1% in NS&I !

    It may seem like a hassle but it doesn't take too long to open accounts online. With a few difference durations of fixed term accounts you should be able to get somewhere between 2% and 2.5% overall which is currently beating inflation. Its just as likely to go down as up in the future.
  • bostonerimus
    bostonerimus Posts: 5,617 Forumite
    Sixth Anniversary 1,000 Posts Name Dropper
    The inheritance problem is one that should be addressed. You have some ways to get around that.

    You could use life insurance, put the money in trust or reduce the size of the estate by gifting money to children or charities and/or use some to buy an annuity.

    I think this is far more complicated than how to invest your money and it would be worth professional advice. You could put the money in trust and take out the interest on a savings bond ladder. As you are risk averse maybe use some of the 1M to buy an annuity.
    “So we beat on, boats against the current, borne back ceaselessly into the past.”
  • steampowered
    steampowered Posts: 6,176 Forumite
    Part of the Furniture 1,000 Posts Name Dropper
    Why are you so risk averse?

    It sounds like you have more money than is required to meet your needs. So it would be sensible to take some risk.

    As others have pointed out - over the long term, investment risk goes down, but inflation risk goes up.

    You should go and speak to an IFA.
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