Where to invest £1m to generate 10%+ income with some risk

Thrugelmir

Barry_Bear said:

"to come up with a portfolio mix that will generate better than my global tracker. At this stage I am not looking at individual stocks."
https://monevator.com/why-a-total-world-equity-index-tracker-is-the-only-index-fund-you-need/

If you offset the currency risk by holding Government bonds in local currency i.e. GDP.   Not a popular theme at the moment. 

fizio

ZingPowZing said:

Steve182 said:

However I think you may be wanting to jump on the bandwagon a bit late. The rally seen during the past decade or so cannot continue indefinitely.

True. Half a million in cash = time you can never get back.
You may come unstuck trying to catch up.

The cash is in a large part my tax-free from pension so not much I can do about 'missing out' in previous years. 

fizio

Deleted_User said:

Going forward, I would have zero cash if all my needs are already  met with a DB pension. Go 100% stocks.  Diversified, low cost, world portfolio.  Leave 5% to play with and invest into individual stocks like Tesla or GME if you want excitement. 

You can never guarantee 10% return (assuming thats what you mean when you say income).  

That is pretty much where I am at - other than currently planning 50% tracker, maybe 40% in specific markets/funds eg growth/emerging/etc and 10% Tech related 

fizio

ZingPowZing said:

Deleted_User said:

ZingPowZing said:

Steve182 said:

However I think you may be wanting to jump on the bandwagon a bit late. The rally seen during the past decade or so cannot continue indefinitely.

True. Half a million in cash = time you can never get back.
You may come unstuck trying to catch up.

That’s true but sounds like he does not need the money 

Only speculating but my sense is that the OP has easy money rolling in:
Landlord/Landlady? 

Partially - 40 years in the Tech industry and did property on the side as an alternative to pension/investments - nothing easy about property now with tax/regulation/etc hence not building anymore there and switching to stocks

fizio

pete1975 said:

out of interest how did you world tracker do,  im at the other end of the scale and i want to start a world tracker porfolio and i know past success is no measure of the future but just wondered if its performed reasonable well for you

the ww tracker/lifestyle type funds have probably done me 5%+ on average over the last decade (guessing rather than hard facts) so definitely would recommend as a starter

fizio

Secret2ndAccount said:

 So, if you invest 60% in equities, diversified across oceans and industries, and you keep 40% in fixed income (generally lower growth, but much better protected in case of a crash), you can feel pretty safe that you will get a return of 3% or more every year, on average. 

I guess you could look into Venture Capital Trusts. They are risky, but returns can be good, and there are big tax benefits to be had. It's hard for the little guy to get in on it, but there is also turnaround investing. You buy in to a company that is performing badly, and turn the business around. The stock price goes up, and you make money - again a return that beats the market.

One thing to be very wary of is charges. Most of the people who get rich from the stock market are people charging others for their services. Be clear about how much of your profit you are giving up each year for the benefit of someone's expertise. They get their cut whether you win or lose.

1. Yes I am broadly in agreement other than the 'fixed income' element is taken care of with my pension/property so 100% in stocks is what I am going for
2. I did look at venture capital trusts but not in any detail - they may have been a better bet when I was working and paying 40%+ tax but intend to stay a basic rate tax payer now. 
3. Agree fully hence have mainly been tracker/etf investing so far but will watch charges carefully

Thanks,

fizio

I agree with many that the markets seem very high now so it may or may not be a wise time to invest a lot of cash. Having said that I can hold out and probably the markets will go up even more so so am 'between a rock and a hard place' on timing

fizio

Barry_Bear said:

"to come up with a portfolio mix that will generate better than my global tracker. At this stage I am not looking at individual stocks."
https://monevator.com/why-a-total-world-equity-index-tracker-is-the-only-index-fund-you-need/

I am a big fan of this and last decade has have been pretty much exclusively on world trackers. I will stay 50% invested here for sure.

[Deleted User]

fizio said:

Deleted_User said:

Going forward, I would have zero cash if all my needs are already  met with a DB pension. Go 100% stocks.  Diversified, low cost, world portfolio.  Leave 5% to play with and invest into individual stocks like Tesla or GME if you want excitement. 

You can never guarantee 10% return (assuming thats what you mean when you say income).  

That is pretty much where I am at - other than currently planning 50% tracker, maybe 40% in specific markets/funds eg growth/emerging/etc and 10% Tech related 

Why not 100% tracker?  Simple is good.  Nothing’s wrong with splitting by markets but do you have a reason for it?  And if you start adding growth and tech funds then you are tripling up on the likes of Tesla.  

billy2shots

fizio said:

I agree with many that the markets seem very high now so it may or may not be a wise time to invest a lot of cash. Having said that I can hold out and probably the markets will go up even more so so am 'between a rock and a hard place' on timing

Although time in the market (lump sum strait away) is statically better than 'timing the market', drip feeding money in could suite you. 

If you do drip feed then decide on timings and stick to it or even better, set up standing orders. If you do it manually you will overthink things and risk timing the market again.