You've won £1m - what do you do?
Discussion
RSTurboPaul said:
okgo said:
RSTurboPaul said:
Please can I borrow all these crystal balls that are guaranteeing 8% growth per annum / stock market returns of 100%? 
If it doesn’t most of the world is f
ked, so you’d better hope it does!And on that basis, £1m in gold is not that difficult to store...
RSTurboPaul said:
Please can I borrow all these crystal balls that are guaranteeing 8% growth per annum / stock market returns of 100%?
It’s worked for the last 100 years or more and if it suddenly stops working it’s a safe bet you can kiss goodbye to any safe 3% options that would provide a comfortable lifestyle on £1m as well. Martin315 said:
RSTurboPaul said:
okgo said:
RSTurboPaul said:
Please can I borrow all these crystal balls that are guaranteeing 8% growth per annum / stock market returns of 100%?
If it doesn’t most of the world is fked, so you’d better hope it does!And on that basis, £1m in gold is not that difficult to store...
)You could convert back into fiat currency whenever you wanted and then just spend that. Or if you prefer your hats made with tin foil
you could swap directly for other stuff with a willing counterparty, which may or may not be useful when CBDCs are rolled out and cash is withdrawn Martin315 said:
RSTurboPaul said:
okgo said:
RSTurboPaul said:
Please can I borrow all these crystal balls that are guaranteeing 8% growth per annum / stock market returns of 100%?
If it doesn’t most of the world is fked, so you’d better hope it does!And on that basis, £1m in gold is not that difficult to store...
Doofus said:
I know, but as I posted earlier, accouting for interest and inflation, the sum could last you 29 years.
Not if you want to actually live off it. In 29 years £1m is likely to be worth what £100k is now. That’s a process that starts now and will reduce the capital sum if interest rates don’t exceed inflation AND pay an income as well. Which they won’t.
Doofus said:
Using your 'system', you'd die with millions in the bank
Not really my system but I’ll take the credit if you like 
Not knowing when we’ll die is inconvenient when it comes to planning but if my system is generating bigger returns I will try to pay enough attention and spend some of it
.doofus said:
I was just illustrating one way of doing that, not suggesting is was the correct way.
Yep fair enough, it just surprises me that people are so conservative with this stuff. Steve H said:
Doofus said:
I know, but as I posted earlier, accouting for interest and inflation, the sum could last you 29 years.
Not if you want to actually live off it. In 29 years £1m is likely to be worth what £100k is now. That’s a process that starts now and will reduce the capital sum if interest rates don’t exceed inflation AND pay an income as well. Which they won’t.
Doofus said:
To those who intend to buy a nice car, bear in mind that when you want to replace it, it'll have dropped in value and the new car will have increased, so you need another cash lump at that point.
Rather depends on the car. Buy wisely and appreciation ££ is almost guaranteed.I would consider moving to a house with a bigger garage and more land around it.
I would buy a kombi van and a couple of relatively modest modern-classic cars and motorbikes as the basis for projects.
I would go on some activity holidays of the sort that I've not done for a few years.
I would work part-time in something interesting, but less taxing.
(Hang on, I forgot about the family!)
I would buy a kombi van and a couple of relatively modest modern-classic cars and motorbikes as the basis for projects.
I would go on some activity holidays of the sort that I've not done for a few years.
I would work part-time in something interesting, but less taxing.
(Hang on, I forgot about the family!)
Doofus said:
I assumed 3% interest pa and 3.5% inflation. On that basis, £29k pa (because that is the example I was using from a previous poster) would be around £74.5k in 29 years' time, which is the point at which the money would run out.
But even if that works as the capital sum reduces (I’m not checking your maths 
), the £29k pa will not be enough to live on in a decade never mind two or three. It just seems to me that getting more growth by doing what has reliably worked since modern financial systems began seems like the obvious way forward.
Steve H said:
Doofus said:
I assumed 3% interest pa and 3.5% inflation. On that basis, £29k pa (because that is the example I was using from a previous poster) would be around £74.5k in 29 years' time, which is the point at which the money would run out.
But even if that works as the capital sum reduces (I’m not checking your maths ), the £29k pa will not be enough to live on in a decade never mind two or three. It's not the best solution - it's not even a sensible one - but it was posted on the back of somebody saying they only needed £29k pa, and somebody else suggesting a strategy which protected the capital so it would be intact when you die. I was merely investingating a half-way option to see how long it would be until the capital ran out.
I really didn't warrant this much analysis.
Assuming the shock didn't kill me, It would still take at least a fortnight to get over the shock.
I'm dead boring, so keeping quiet & perhaps disappearing would be easy enough for me.
Not sure what I'd do beyond that though. I struggle to think of how to dispose of any dispoable income at the best of times.
New cover for the ironing board perhaps
I'm dead boring, so keeping quiet & perhaps disappearing would be easy enough for me.
Not sure what I'd do beyond that though. I struggle to think of how to dispose of any dispoable income at the best of times.
New cover for the ironing board perhaps
Doofus said:
Steve H said:
Doofus said:
I assumed 3% interest pa and 3.5% inflation. On that basis, £29k pa (because that is the example I was using from a previous poster) would be around £74.5k in 29 years' time, which is the point at which the money would run out.
But even if that works as the capital sum reduces (I’m not checking your maths ), the £29k pa will not be enough to live on in a decade never mind two or three. It's not the best solution - it's not even a sensible one - but it was posted on the back of somebody saying they only needed £29k pa, and somebody else suggesting a strategy which protected the capital so it would be intact when you die. I was merely investingating a half-way option to see how long it would be until the capital ran out.
I really didn't warrant this much analysis.
.But I’m still sticking with more is better
, have a good evening .One of the biggest problems you would have is avoiding tax. If you can't do that, then investments will be crap.
If you can't get it into a pension, an ISA, or something tax-efficient, you will be paying through the nose on any gains or interest.
Average annual inflation = 3.2%pa
Average FTSE growth = 5.3%pa
After paying CGT, you will have the 2024 equivalent of £20k pa to spend on beer and pizza for ever.
Personally, I'd drop that to £15k and "blow" quarter of a mill on having fun and doing stuff. The kids can fight over the £750k+ when the wife and I am dead.
If you can't get it into a pension, an ISA, or something tax-efficient, you will be paying through the nose on any gains or interest.
Average annual inflation = 3.2%pa
Average FTSE growth = 5.3%pa
After paying CGT, you will have the 2024 equivalent of £20k pa to spend on beer and pizza for ever.
Personally, I'd drop that to £15k and "blow" quarter of a mill on having fun and doing stuff. The kids can fight over the £750k+ when the wife and I am dead.
RSTurboPaul said:
A monster box of 100oz is £200k at the moment, and they really do not take up much space. You could easily fit 500oz into a large safety deposit box at a bank (if you felt confident that access would be maintained in all possible scenarios, obviously )
You could convert back into fiat currency whenever you wanted and then just spend that. Or if you prefer your hats made with tin foil you could swap directly for other stuff with a willing counterparty, which may or may not be useful when CBDCs are rolled out and cash is withdrawn
Personally, if I believed that Big Finance was going to seize my assets I wouldn’t look to get around this by storing my assets in a box inside a bank. )You could convert back into fiat currency whenever you wanted and then just spend that. Or if you prefer your hats made with tin foil
you could swap directly for other stuff with a willing counterparty, which may or may not be useful when CBDCs are rolled out and cash is withdrawn TwigtheWonderkid said:
Faust66 said:
I'd retire...
I'm 49 and I've only got 75k left on the mortgage, so I'd pay that off and live off the interest from my winnings.
So you've got £925K and you're going to live off the interest. That's about £37K / year. That's ok for now but if interest rates don't increase, that £37K/year is not going to go up. Each year it buys less and less. And because you're living off the interest, your £925K is staying fixed. £925K is a lot today, but in 30 years time when you're 79, it's not going to be worth that much. And your £37K/year in 30 years won't even pay your council tax. I'm 49 and I've only got 75k left on the mortgage, so I'd pay that off and live off the interest from my winnings.
Christ that’s plenty enough for the average person. Anyway 300k per annum also available to spend if desperate !
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