Business sale - high 7 figure investable - where do I turn?

LunaLater

To add to the above, do think carefully about what it is that you want to achieve. At that level you may well have zero interest in risking any of it to try to get growth; or may prefer to invest only a small portion for growth and want to keep the rest in as safe a place as possible.

Estate planning is also important. If you plan to pass it on rather than spend it all then you’ll probably want to take good advice on the best way to do this.

LunaLater

LunaLater said:

I can’t offer financial advice, because of my job, but will say that there is a non-zero risk of you being fleeced, or the bank that you deposit it with going bust, so please be exceptionally careful regarding receiving the money into the correct account, and then transferring it into where you want it to sit while you are considering your options.

UK short-dated government bonds would be a normal thing to invest in for absolute safety (in terms of not losing your money.)

Please don’t go to someone like St James’ place, who’ll simply fleece you.

I missed a bit out in the above. The short-dated gilts advice was just to keep your money safe for a few months while working out what you want to do, not an investment strategy.

GeoffTF

The most important things to be clear about are what you want to do with your life and what you what to do with your money. Clever ways of saving tax may be insignificant here, because the allowances are small in relation to your assets, and the rules will certainly change in your lifetime. An important question is what would you do if you were hit with punitive taxes in this country. The issues here are probably not the ones that the IFA round the corner will be used to dealing with, and I would not want to give him a cheque for £10 million. Educating yourself is a good idea, but will take time. Tread carefully.

Bostonerimus1

The size of your net worth doesn’t change the basics of personal finance ie budgeting, controlling expenses and taxes and looking to find the right balance between risk and reward. It will probably change the aspects that you emphasize. When you have millions budgeting won’t be as critical as controlling taxes. So you need to look at tax efficient investments over and above pensions and ISAs like Venture Capital Trusts, but don’t forget about the old standbys of ETFs and Gilts. You should also get your will and estate plan set and consider some charitable donations. A trust might be something to consider as part of your estate plan and also for current tax efficiency, but that definitely needs professional advice. 

Cus

I would think that if you have built up a business worth that amount then you must have trusted contacts who would give you a recommendation of a suitable advisor. 

gm0

People who come here of more modest means with the "advice shopping problem" - generally need a combination of the following:

- reassurance on and actual input on personal and family tax planning
- setting up retirement investments (or other ones from business, BTL or inheritance) without learning DIY investment
- some level of support to maintain confidence in economic turbulence and volatility.

What we often tell them is that they should find an "independent" for two reasons

1) tied FA products are often poor value for money on a cost criteria - the same investments can be had for less drag.

2) the true IFA will have access to a broad range of providers - though they may in practice use a few of the same ones repeatedly for different categories of customer.  There is nothing especially wrong with that.  It will be suitable.  Their incentive is to provide something matching needs and defensible as suitable - not to make each customer a full custom solution.  So while the "whole market" vs single product thing is true to a level - there is a level or marketing attached also.

All advisers of the highstreet independent or wealth management fa chain variety - working in the space will have a range of total net worth that they typically work with.  And more or less international, with more or less focus on generational wealth transfer and planning. 

A key point when shortlisting recommendations is matching up net worth. 

It is important that you find someone for whom you are neither too poor nor way too rich.  That you fit their typical wealth level or are slightly above average.  Either extreme will very likely lead to disappointment.  Too big a pot vs what they typically service and the FA/IFA who is used to smaller sums and planning issues will not have the experience and regular contacts to as easily deal with your issues in the areas you need them to.
Or at the other end (too small a pot) you are just not that interesting really and are talked to because they don't want to offend the existing richer client who introduced you.  And you will be offered poorer prices, or desultory service from the office junior.  Also unacceptable.

Good luck

peaksandvalleys

Cus said:

I would think that if you have built up a business worth that amount then you must have trusted contacts who would give you a recommendation of a suitable advisor. 

Yes, but advice from friends and contacts, whilst well received, shouldn't be followed blindly in my experience.  I'm flying a bit blind here, hence this thread.

JohnWinder

I’m not convinced ten million need be invested differently from half a million. Why would a sound strategy for the smaller gradually or suddenly become unsound the larger? I can picture an ordinary old (probably more wisdom than young) IFA coping with ten million.

To be fair, some of the ‘not your average job’ comments came in before more of the curtain was rolled back thus:

at this point I'm not looking to generate disposable income from the investments but rather to try and grow the pot (or at least preserve relative to inflation in the current environment)........‘It'll be nice to work for a while in a derisked environment.’

What has been written thus far suggests a low cost global equity fund would cut the mustard, if ‘grow the pot (or at least preserve relative to inflation in the current environment’ means getting returns of ~6%/year which is current inflation I think. Or even linkers would do it, since real returns are positive beyond about 2 years. I could probably live on the fees you’d save with that approach compared to venture capital or hedge funds through an ‘advisor’. Let me check: yes, I can live on 100,000/year, and I’m being generous with the fees or parsimonious actually.
If hedge funds, private equity and the like are good deals although expensive and risky, then surely you’d only sign up if 100% global equities was not risky (and ‘returny’) enough for you? And something about the tax tail wagging the dog.

bongoali

Put it all on black 

Sea_Shell

From reading threads in the banking section, I feel that your biggest hurdle will be actually getting the money THROUGH your normal bank current account from the sale and onwards to your investments (wherever they end up) without triggering your account being frozen!

Would your solicitor be able to split some of the sale money off and pay a modest amount into an account with a different back, to at least ensure that you have access to "normal" day to day spends money from the get-go.

Do you have more than one current account?    

Would it be sensible (or make any difference) to at least try and have a meeting with someone at your bank to forewarn them, even if they try the hard sell on you (which you probably should ignore)


Good luck and well done.