You've won £1m - what do you do?
Discussion
For starters I would tell no one, and I would ask my wife to tell no one.
I would buy the very attractive holiday home near me, that is currently for sale for £695k and generates, according to the agent, about £55k a year in income, equating to a 7.9% return on investment, whilst remaining a wonderful and financially appreciating property.
I would probably stick the remaining £300k into a high interest investment account or scheme as a bit of a gamble.
We have no mortgage, and already have a far nicer and far bigger property than we would ever need, and don't really require any more material possessions of note, but the income from the holiday let and investment may allow me to work slightly less and spend more time with my young child, or alternatively keep working at the level I do, but bank more cash than currently to invest for my little one or buy another house for them.
I would buy the very attractive holiday home near me, that is currently for sale for £695k and generates, according to the agent, about £55k a year in income, equating to a 7.9% return on investment, whilst remaining a wonderful and financially appreciating property.
I would probably stick the remaining £300k into a high interest investment account or scheme as a bit of a gamble.
We have no mortgage, and already have a far nicer and far bigger property than we would ever need, and don't really require any more material possessions of note, but the income from the holiday let and investment may allow me to work slightly less and spend more time with my young child, or alternatively keep working at the level I do, but bank more cash than currently to invest for my little one or buy another house for them.
Do a George Best: spend it all on booze, birds and fast cars. Waste the rest! 
Actual answer: probably buy a slightly bigger house locally with bigger garden and a detached double garage outbuilding for me to tinker with cars and bikes, and with parking for a nice motorhome that I would buy. Drop down to working only 4 days a week.
Actual answer: probably buy a slightly bigger house locally with bigger garden and a detached double garage outbuilding for me to tinker with cars and bikes, and with parking for a nice motorhome that I would buy. Drop down to working only 4 days a week.
£700k on a new house I’ve got my eyes on.
Keep current house and rent out.
Invest £50k into Premium bonds and moan monthly on the Premium Bond thread
Invest £150k into savings and investments.
And then go on a decent holiday, sit on a lounger and think about what to do with the remaining £100k.
Keep current house and rent out.
Invest £50k into Premium bonds and moan monthly on the Premium Bond thread
Invest £150k into savings and investments.
And then go on a decent holiday, sit on a lounger and think about what to do with the remaining £100k.
Al Gorithum said:
Unfortunately £1m isn't very much nowadays. You'd be lucky to see £50k p/a in interest which won't give you the high life.
Exactly. Which is what I was saying on the 'Inheritance' thread. Treat it carefully in the right sort of investment, and you might get £50-60k a year as nice top-up to your income, whilst keeping the original sum relatively safe and appreciating.
If you treat £1m like it's some kind of life changing amount or lottery win then you will soon be back to zero.
Mont Blanc said:
Al Gorithum said:
Unfortunately £1m isn't very much nowadays. You'd be lucky to see £50k p/a in interest which won't give you the high life.
Exactly. Which is what I was saying on the 'Inheritance' thread. Treat it carefully in the right sort of investment, and you might get £50-60k a year as nice top-up to your income, whilst keeping the original sum relatively safe and appreciating.
If you treat £1m like it's some kind of life changing amount or lottery win then you will soon be back to zero.
When you think about it, it is amazing how £1m is both an enormous and tiny amount of money.
Ultimately I would sell the current house, buy a place with a bigger garden and no mortgage, get a new car and go on a few holidays each year but other than that I'm not sure that much would change.
Ultimately I would sell the current house, buy a place with a bigger garden and no mortgage, get a new car and go on a few holidays each year but other than that I'm not sure that much would change.
On “only” a million I wouldn’t be retiring, but life would be significantly more comfortable.
£260,000 to pay off the mortgage
£200,000 set aside for both kids university or similar.
£200,000 set aside for kids first houses and a bump start of pensions for them.
The rest into savings/investments/pension and a bunch of stuff in the house like a new drive and landscaping the garden.
It would, crucially, give me “f
k you” money in case work really do piss me off one day.
£260,000 to pay off the mortgage
£200,000 set aside for both kids university or similar.
£200,000 set aside for kids first houses and a bump start of pensions for them.
The rest into savings/investments/pension and a bunch of stuff in the house like a new drive and landscaping the garden.
It would, crucially, give me “f
k you” money in case work really do piss me off one day. I know people say it's not a life changing amount but it would make a massive difference to us..
1. Pay off mortgage - this is life changing on it's own, I like my job and it's a decent income, the wife is an A&E Sister and she could drop her hours which would mean a lot less stress for her.
2. Build the extension we want, this would make our home our dream home.
3. Invest the rest.
1. Pay off mortgage - this is life changing on it's own, I like my job and it's a decent income, the wife is an A&E Sister and she could drop her hours which would mean a lot less stress for her.
2. Build the extension we want, this would make our home our dream home.
3. Invest the rest.
Gassing Station | The Lounge | Top of Page | What's New | My Stuff