What to do - substantial investment?
Discussion
TheLordJohn said:
BigInvestor said:
Certainly not - if you don't ask, and all that!
I saw an opportunity, around 20 years ago, that promised to link the skills of my recent degree, with a fledgling business under a year old. Time and place, mixed with asking and taking opportunity where it arose, way too many hours and sleepless nights, and the odd re-mortgage of my house when the need came - and sadly, the destruction of many a relationship (both personal and friendship) by being too work focused! Would rather not put any more flesh on it than that right now - happy to do so once I'm away with the loot! It's been earned, I would say, and took five years longer than I had planned.
That's great to read. Every nugget wants to be a millionaire but few are willing to put the REAL work in to achieve it. I saw an opportunity, around 20 years ago, that promised to link the skills of my recent degree, with a fledgling business under a year old. Time and place, mixed with asking and taking opportunity where it arose, way too many hours and sleepless nights, and the odd re-mortgage of my house when the need came - and sadly, the destruction of many a relationship (both personal and friendship) by being too work focused! Would rather not put any more flesh on it than that right now - happy to do so once I'm away with the loot! It's been earned, I would say, and took five years longer than I had planned.
The amount of money that comes from risks, a bit of nouse and some bloody hard work isn't to be sniffed at.
I give myself until 45 before I'm worth £3+ million. I'm 26 now and won't stop until I get financially free.
HenryJM said:
Make sure that you enjoy it as you do it - my preference has been to build wealth inside and outside the company, I don't need the company any more or the income from it but I enjoy it! So I have more than enough outside to fund the lifestyle I want but I still have the company to play with.
I feel my success will come from extra curricular interests (to begin with anyway).I can't imagine I have the skill set to start a business immediately.
So I'm working to turn my earned income into passive income as soon as, and as much as, possible.
Last point, rest 1-2-1, if you will lose your salary or regular earnings from the exit, this creates a new issue to be aware of.
I went from cruising year after year on 75-100k monthly....to nearly nothing, except the pot.
What this means, you suddenly cannot simply repair losses, mistakes, damage....Markets drop dramatically you could repair in 1-2 years.
If an investment goes off track, 2-3 months of earnings could cover it....until it returns to the norm.
If house renovation goes over budget, so what.....
But once little or no 'new funds' are arriving, any such corrections come out the pot....which is a different emotional impact.
And finally, when selecting IFA / adviser, ask about their wealth, financial circumstances, attitude to risk ! No point in relying upon a guy who has read the books, who relies upon his firm's brand to get clients. You want someone who understands deeply the lifestyle and attitude challenges you will face inn the future.
I think that was 2 points ;-)
BA
I went from cruising year after year on 75-100k monthly....to nearly nothing, except the pot.
What this means, you suddenly cannot simply repair losses, mistakes, damage....Markets drop dramatically you could repair in 1-2 years.
If an investment goes off track, 2-3 months of earnings could cover it....until it returns to the norm.
If house renovation goes over budget, so what.....
But once little or no 'new funds' are arriving, any such corrections come out the pot....which is a different emotional impact.
And finally, when selecting IFA / adviser, ask about their wealth, financial circumstances, attitude to risk ! No point in relying upon a guy who has read the books, who relies upon his firm's brand to get clients. You want someone who understands deeply the lifestyle and attitude challenges you will face inn the future.
I think that was 2 points ;-)
BA
I sort of went through a similar thing a few years back . Sold a company , had a separate income that continued and was enough for a good living .
One of the earlier posts is definitely spot on , take some time to think about what you really want . I am a little older than you now , mid 50s , kids grown up and left home .
I decided after a couple of years that more and more money through capital growth wasn't what I needed , I can only drive one car at a time , I like my house and I travel extensively anyway .I have generally opted for safe investments that keep place with inflation so as to preserve the capital I haven't spent yet ,and are low cost.
If you live till you are 85 that's another 40 years , if your investments only keep place with inflation your £8m capital will give you £200K a year or £17K a month in current terms . That's before any interest .
Your in a fortunate position compared with most but don't let the money rule you , I have found true friendships are far more valuable than making the extra percentage point on my investments ( that's not to say I don't take them seriously ) . I am also a bit of a cynic about IHT planning , that seems to be something you do for the benefit of others !
One of the earlier posts is definitely spot on , take some time to think about what you really want . I am a little older than you now , mid 50s , kids grown up and left home .
I decided after a couple of years that more and more money through capital growth wasn't what I needed , I can only drive one car at a time , I like my house and I travel extensively anyway .I have generally opted for safe investments that keep place with inflation so as to preserve the capital I haven't spent yet ,and are low cost.
If you live till you are 85 that's another 40 years , if your investments only keep place with inflation your £8m capital will give you £200K a year or £17K a month in current terms . That's before any interest .
Your in a fortunate position compared with most but don't let the money rule you , I have found true friendships are far more valuable than making the extra percentage point on my investments ( that's not to say I don't take them seriously ) . I am also a bit of a cynic about IHT planning , that seems to be something you do for the benefit of others !
So many thanks to everyone who has posted. Lots of great information there, and so much to think about. I am very much leaning towards doing very little initially, and getting used to the idea. Also, the idea of friends over wealth is very much in line with my thinking.
A question to those of you who do invest - what are your fee structures like? Initial fee, with an annual maintenance charge? Charges per transaction? Percentage of the invested sum? Percentage of the growing (fingers crossed) sum? Fixed fees?
A question to those of you who do invest - what are your fee structures like? Initial fee, with an annual maintenance charge? Charges per transaction? Percentage of the invested sum? Percentage of the growing (fingers crossed) sum? Fixed fees?
BigInvestor said:
I am very much leaning towards doing very little initially, and getting used to the idea. Also, the idea of friends over wealth is very much in line with my thinking.
From what you've said of your situation, that sounds like the best move at present.Markets are at or near record highs & there is a lot going on in the world at the moment.
BigInvestor said:
A question to those of you who do invest - what are your fee structures like? Initial fee, with an annual maintenance charge? Charges per transaction? Percentage of the invested sum? Percentage of the growing (fingers crossed) sum? Fixed fees?
Percentage of invested sum is my preference, that gives an incentive for them to grow it because obviously they then get a percentage of a bigger number. I'm not keen on there being no incentive on fixed rates and I certainly don't want it being on transactions. But any can work with the right people.
Would be interested to hear how hard work, 'hard work' is and how stressful? Not just for OP but others in similar position
For me the big scare would not knowing if I would be left with no money, house, etc. i.e security is gone.
As others have said, I am glad it paid off. Were you always confident it would?
For me the big scare would not knowing if I would be left with no money, house, etc. i.e security is gone.
As others have said, I am glad it paid off. Were you always confident it would?
211lover said:
Would be interested to hear how hard work, 'hard work' is and how stressful? Not just for OP but others in similar position
For me the big scare would not knowing if I would be left with no money, house, etc. i.e security is gone.
As others have said, I am glad it paid off. Were you always confident it would?
For many 'hard work' is that it is what you do all day and every day for a long period. It's what you are mainly thinking about when you get up and go to bed and the time in between. For me the big scare would not knowing if I would be left with no money, house, etc. i.e security is gone.
As others have said, I am glad it paid off. Were you always confident it would?
For me I minimised risk, my wife could and did support us and the business was not one that needed money of scale invested in it. I went times when I earned nothing but paid employees and I certainly earned less than some I employed for quite a while. I never risked the house or other assets but many do.
I was confident I could earn money from the business, I had no idea how much although it was always about building something, specialising in a niche, building products to sell and not selling time, spreading it in different geographies etc.
HenryJM said:
For many 'hard work' is that it is what you do all day and every day for a long period. It's what you are mainly thinking about when you get up and go to bed and the time in between.
For me I minimised risk, my wife could and did support us and the business was not one that needed money of scale invested in it. I went times when I earned nothing but paid employees and I certainly earned less than some I employed for quite a while. I never risked the house or other assets but many do.
I was confident I could earn money from the business, I had no idea how much although it was always about building something, specialising in a niche, building products to sell and not selling time, spreading it in different geographies etc.
You are in a very good position if you can avoid risking the house...For me I minimised risk, my wife could and did support us and the business was not one that needed money of scale invested in it. I went times when I earned nothing but paid employees and I certainly earned less than some I employed for quite a while. I never risked the house or other assets but many do.
I was confident I could earn money from the business, I had no idea how much although it was always about building something, specialising in a niche, building products to sell and not selling time, spreading it in different geographies etc.
To me, I work hard, some calls at 4am, evenings, midnight, support/conference calls/meetings/emails round the clock. But I am salaried and don't carry same risk some do. I absolutely am thinking about it most the time. Rightly or wrongly.
211lover said:
To me, I work hard, some calls at 4am, evenings, midnight, support/conference calls/meetings/emails round the clock. But I am salaried and don't carry same risk some do. I absolutely am thinking about it most the time. Rightly or wrongly.
“Build your own dreams, or someone else will hire you to build theirs.”
BigInvestor. See my earlier reply re fees. If you ask those questions, you need help - and must recognise risks now, as you enter a world outside your comfort zone.
Transparency is crucial - then let your business brain work out the risks and reward balance that makes you happy.
I have tried the Big 4, niche boutiques...now a small outfit outside London, with one guy who I have total confidence with, in terms of integrity, transparency. He adds the How To ? and provides caution, to prevent the big losses.....perfect balance for my propensity to 'be greedy when others are fearful', and to be too focused on 2-3 holdings.
BA
Transparency is crucial - then let your business brain work out the risks and reward balance that makes you happy.
I have tried the Big 4, niche boutiques...now a small outfit outside London, with one guy who I have total confidence with, in terms of integrity, transparency. He adds the How To ? and provides caution, to prevent the big losses.....perfect balance for my propensity to 'be greedy when others are fearful', and to be too focused on 2-3 holdings.
BA
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