We'd like to remind Forumites to please avoid political debate on the Forum. This is to keep it a safe and useful space for MoneySaving discussions. Threads that are - or become - political in nature may be removed in line with the Forum’s rules. Thank you for your understanding.
£1,000,000 investment
Comments
-
I'll add 'Daily Mail reading Farage supporter' to the list of 'insults - thanks.0
-
What should I look out for with a FA and what's it going to cost me please ?
Avoid the Sweet FA'sRetired 1st July 2021.
This is not investment advice.
Your money may go "down and up and down and up and down and up and down ... down and up and down and up and down and up and down ... I got all tricked up and came up to this thing, lookin' so fire hot, a twenty out of ten..."0 -
What should I look out for with a FA and what's it going to cost me please ?
Do not see an FA. It needs to be an IFA. I for independent. If they are FA, it means they are restricted and usually that means a salesforce with a limited selection (and often expensive).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.0 -
Most people on here don't really need an IFA because they can do some pretty simple things to improve their finances.; budget, pay into pensions and ISAs etc. However, with 1M you need some really specialized advice and so I'd go to an advisor with experience in taxation of those sort of amounts. Your run of the mill IFA might not be appropriate, make sure you find one with the relevant experience.“So we beat on, boats against the current, borne back ceaselessly into the past.”0
-
I have received some really useful advice and food for thought since my original post, thank you. It's also been suggested that I will soon be dead or in a care home and also that I might be some kind of fantasist who dreams up posts on financial forums. It's even been questioned why a person with £1,000,000 sitting in a bank at 1% should have an issue with Mark Carney.
But seriously, I have since investigated local Financial Advisors in my area and I was very surprised to see the sheer number of them. Nearly every neighbouring road seem to have one.
What should I look out for with a FA and what's it going to cost me please ?
First off, look for an IFA not an FA. The I is important and it means independent.
Best way is via recommendation. Otherwise choose 3. See them all for the first free appt, then choose the one you feel suits you best re temperament/Fees etc.0 -
I'll add 'Daily Mail reading Farage supporter' to the list of 'insults - thanks.
I have yet to see any insults. I myself just asked you a question, I dont recall getting an answer. is that an insult?
You have had a fantastic lot of good luck, congratulations on taking your time to think about it.0 -
bostonerimus wrote: »However, with 1M you need some really specialized advice and so I'd go to an advisor with experience in taxation of those sort of amounts. .
Translated into the yield on a FTSE 100 tracker, it's around £45,000 pa. A lot higher than UK average wage, but not mega money.
Yes there are other taxes to consider like IHT, but the the problem with planning for these are that the government change the rules every few months0 -
an IFA can't tell you how much of the £1m you should use for shorter-term spending, how much to boost your spending throughout retirement, how much to give to your children (or when), and how much to preserve longer-term. you have to decide that.
shorter-term money should probably stay in cash savings, and you can work out how to do that yourself. at least part of longer-term money should probably be invested, and that is something an IFA can help with.
an IFA can also help with use of tax wrappers (the main ones are ISAs and pensions), and with inheritance tax.
however, personally i doubt you have much inheritance tax "problem". and i very much doubt you need to use anything complicated/expensive (like trusts) to avoid it.
the simplest way to reduce exposure to IHT is to give away some capital to your children as soon as possible. because any gifts made more than 7 years before you die are ignored for the purposes of IHT. and you will probably live much longer than that. the only issues with this are that you have to decide how much you want to give away, and be confident your children won't squander the money if you give it when they're too young.
the basic exempt amount for IHT (after excluding gifts made more the 7 years before death) is £325,000. but if you have a home worth at least £150,000 (and are leaving it to a descendant), that gives you an extra £150,000 exemption, making a total of £475,000. and from april next year, that £150,000 figure will rise to £175,000, making the total exemption £500,000.
in addition, if you are (or were) half of a married couple (or civil partnership), and the first to die leaves (or left) everything to the survivor, then all the figures in the previous paragraph are doubled.
so, depending on your marriage status, and how much you want to give your children to help buy homes, your IHT "problems" might fade away.0 -
short_butt_sweet wrote: »the simplest way to reduce exposure to IHT is to give away some capital to your children as soon as possible.
Second simplest.
The simplest way is to spend it.
If you are a retired person over your Nil Rate Band, holidays and new cars get 40% tax relief.investa wrote:What should I look out for with a FA and what's it going to cost me please ?
An IFA will cost you much less than you have so far spent on not using an IFA.0 -
0
This discussion has been closed.
Confirm your email address to Create Threads and Reply

Categories
- All Categories
- 348.3K Banking & Borrowing
- 252.1K Reduce Debt & Boost Income
- 452.4K Spending & Discounts
- 240.8K Work, Benefits & Business
- 617.1K Mortgages, Homes & Bills
- 175.6K Life & Family
- 254K Travel & Transport
- 1.5M Hobbies & Leisure
- 16K Discuss & Feedback
- 15.1K Coronavirus Support Boards