How would you invest £1M, starting from scratch?
Okay so... I have a ‘Friend’.
No house (Renting).
Although he’s a creative freelancer, in this current climate he has virtually no current meaningful source of employment, so we might as well assume he’s unemployed.
Out of the blue he wins £1M.
He has no intention of blowing it on parties or frivolous luxuries, but instead wants to make the money work for him - to grow and generate a healthy yearly income.
He has been assigned a financial advisor/potential fund manager, to help him make his money grow. But from what I’ve been reading, a lot of people (inc. Warren Buffett) say sticking your money into an Index fund like the SNP 500 hands down beats any kind of professional fund manager, manually picking stocks and shares.
A fund manager usually charges 1%, while the Vanguard SNP 500 is something like 0.07%, but I think there is a platform charge on top of that.
Obviously my ‘Friend’ would like to own his own house, car, and a few other necessities. Maybe eventually buy his parents a new home closer to him.
But after that, what could he do to make this money grow? With as little effort as possible? Haha 😉
I was thinking:
£50k Personal Money/Ventures
£150-200k Own House
£200-250k Index Fund?
£50k National Savings Bonds
£400-500 Rental properties, maybe?
(But only if they wouldn’t become his full time job, and they could operate passively.)
£1k Crypto wild card 😜
I know nothing about index funds, is there a way to put the lions share into it, and somehow draw a yearly income from it without affecting any of the unit shares?
As someone who doesn’t come from money, but who greatly respects it and appreciates the freedom it can provide, I’d be grateful for any and all your advice. Thanks for taking the time to respond. 🙏😇
I would LOVE to see Martin Lewis do a segment on his show: “What to do with a Million Pounds” haha! But there’s no way I would broadcast such a question over Twitter, for all to see. Feel free to tag him! 😉