If you won £1,000,000 Friday

If you won £1,000,000 Friday

Author
Discussion

TomN94

2,401 posts

158 months

Wednesday 16th May 2012
quotequote all
Pixel Pusher said:
Meh, details, just look at that kitchen floor!

Great for those slides you used to do as a kid in the school hall when you did that little twist from your knees onto your arse and made your trousers shiney.

Ahhh....jumpers for goal posts....

cloud9
Completely O/T but I attempted to slide on my kitchen floor earlier today, not on my knees, but, stood upright....my wrist is now f*cked.


Xaero

4,060 posts

215 months

Wednesday 16th May 2012
quotequote all
I'd probably spend it in a similar manner to the OP. House and a couple of nice cars sorted. The rest can go in investments. Most likely look into buying businesses or property to do up. 1 Million would be hugely beneficial, and although something like 45 million would be nice, I'd be worried about ruining myself with that amount, and things like security need to be considered more.

shirt

22,552 posts

201 months

Wednesday 16th May 2012
quotequote all
pay off all my debts/mortgage and those of close family members
first class return flights for my parents to come visit me
an investment grade 50s/60s classic car, to drive and own forever
a good 5 figures worth of analogue hifi
a few crates of very old rum
a sizeable deposit on a decent flat in a european capital

that would take care of the full amount but i really wouldn't be complaining.

shirt

22,552 posts

201 months

Wednesday 16th May 2012
quotequote all
Stiglet80 said:


Oh and buy a stupidly priced piece of random art for no reason.
if you win, call me. my biro stick man drawings are amazing

v15ben

15,794 posts

241 months

Wednesday 16th May 2012
quotequote all
I'd buy a new BMW GS motorbike, head to Alaska then point the front wheel south. I'd live cheaply along the way, see what I wanted, pay someone to repair/service it as and when and return to the UK as/when/if I got to Patagonia.

I don't need a house to be happy, just saying hehe

v15ben

15,794 posts

241 months

Wednesday 16th May 2012
quotequote all
anonymous said:
[redacted]
I certainly wouldn't be living in the UK with a house and still going to work. The freedom of that big chunk of money to me would be not having to go to work, nor worry about a large/expensive house/car collection and just do as I pleased.

mat777

10,389 posts

160 months

Wednesday 16th May 2012
quotequote all
- A nice trendy appartment in the upmarket end of Clifton, Bristol - for use as a city bolthole away from home in the country.
- Gen2 Viper GTS and a big Ford dually as daily drives, just to annoy the ecomentalists
- Pilot school training so I can get my dream job when the money eventually runs out
- A vintage plane such as a Dak or a Tiger Moth for a little weekend pleasure flying

Any left over can be spent on more wheeled toys smile

Pommygranite

14,249 posts

216 months

Wednesday 16th May 2012
quotequote all
To those who reason that you couldnt retire look at it a different way.

If you want a 700k house, 458 and a big holiday, no, obviously you couldnt retire. However my last point was 'beer money - beer lifestyle'.

The average UK wage is probably around 30k - take home? About 23k i think (havent been in UK for a few years to know the tax. But every month you have about 2k.

The average UK mortgage is around 150k and lets say the average rent or mortgage payment is perhaps 1k. I'm guessing but follow the gist of this.

That means you only have 1k to live on after main expense is paid.

Now if you won 1m then you could pay off your 150k mortgage, lets say 20k on other debt, 50k on new cars and 50k on doing your house up, holidays, possessions. This comes to 270k which leaves 730k in the bank.

With 730k you can achieve 3% as a minimum, 5% if you go abroad. so lets call a middle ground of 4% = 29,200 per annum. Almost the same as you receive in gross wage now.

However, you dont now have a mortgage debt of 1k per month, so the entire c.2,400 take home is yours to keep for bills. You have new cars but if you want to change in 3 years then you can lease one from the 2400, want a holiday then from the 2400. Its just like a wage...obviously.

And you still have your 730k, so theres your retirement pot.

People who say there is no capital appreciation? Well kind of but you're presuming you spend all 2400 per month.

Its totally doable but its all about beer money - beer lifestyle.

p.s 50k gets you a BMW M3 and a Ferrari 355 Spyder. Not exatly shabby and probably way out of your current working league.

Pommygranite

14,249 posts

216 months

Wednesday 16th May 2012
quotequote all
Justayellowbadge said:
There are plenty on here, and in the general population, who could liquidate everything and end up with a bar free and clear. Very few do, choosing jnstead to keep working.

Odd that, if it's so easy.
Generally they've worked for it so their chance to earn more is there and also they've not built just a career but probably their own company/brand and are therefore not willing to let go if they can earn more.also it took many years to get there so the sense of letting it go isnt there.

For the average joe who is employed, doesn't run a business and simply collects his wage and will never get anywhere near a million quid lump sum probably has little to continue busting their nuts for apart from a pay cheque.


Colonial

13,553 posts

205 months

Wednesday 16th May 2012
quotequote all
Buy a modest house, keep on working and bank the rest/ invest in property.

I enjoy my job.

Stiglet80

4,764 posts

187 months

Wednesday 16th May 2012
quotequote all
shirt said:
if you win, call me. my biro stick man drawings are amazing
I am tempted already, would you take £3k for two?

Doofus

25,805 posts

173 months

Wednesday 16th May 2012
quotequote all
Pommygranite said:
To those who reason that you couldnt retire look at it a different way.

If you want a 700k house, 458 and a big holiday, no, obviously you couldnt retire. However my last point was 'beer money - beer lifestyle'.

The average UK wage is probably around 30k - take home? About 23k i think (havent been in UK for a few years to know the tax. But every month you have about 2k.

The average UK mortgage is around 150k and lets say the average rent or mortgage payment is perhaps 1k. I'm guessing but follow the gist of this.

That means you only have 1k to live on after main expense is paid.

Now if you won 1m then you could pay off your 150k mortgage, lets say 20k on other debt, 50k on new cars and 50k on doing your house up, holidays, possessions. This comes to 270k which leaves 730k in the bank.

With 730k you can achieve 3% as a minimum, 5% if you go abroad. so lets call a middle ground of 4% = 29,200 per annum. Almost the same as you receive in gross wage now.

However, you dont now have a mortgage debt of 1k per month, so the entire c.2,400 take home is yours to keep for bills. You have new cars but if you want to change in 3 years then you can lease one from the 2400, want a holiday then from the 2400. Its just like a wage...obviously.

And you still have your 730k, so theres your retirement pot.

People who say there is no capital appreciation? Well kind of but you're presuming you spend all 2400 per month.

Its totally doable but its all about beer money - beer lifestyle.

p.s 50k gets you a BMW M3 and a Ferrari 355 Spyder. Not exatly shabby and probably way out of your current working league.
And every year, inflation of, say, 3% (after all, we're just guessing at the numbers, aren't we?) will erode your income by 2.1%, so by year two, you'll be needing to eat into your remaining capital just to stand still. On that basis, the whole lot would be gone in 30 years.

And you're only 'earning' the national average all that time, assuming that it doesn't outstrip inflation itself...

Pommygranite

14,249 posts

216 months

Wednesday 16th May 2012
quotequote all
Doofus said:
Pommygranite said:
To those who reason that you couldnt retire look at it a different way.

If you want a 700k house, 458 and a big holiday, no, obviously you couldnt retire. However my last point was 'beer money - beer lifestyle'.

The average UK wage is probably around 30k - take home? About 23k i think (havent been in UK for a few years to know the tax. But every month you have about 2k.

The average UK mortgage is around 150k and lets say the average rent or mortgage payment is perhaps 1k. I'm guessing but follow the gist of this.

That means you only have 1k to live on after main expense is paid.

Now if you won 1m then you could pay off your 150k mortgage, lets say 20k on other debt, 50k on new cars and 50k on doing your house up, holidays, possessions. This comes to 270k which leaves 730k in the bank.

With 730k you can achieve 3% as a minimum, 5% if you go abroad. so lets call a middle ground of 4% = 29,200 per annum. Almost the same as you receive in gross wage now.

However, you dont now have a mortgage debt of 1k per month, so the entire c.2,400 take home is yours to keep for bills. You have new cars but if you want to change in 3 years then you can lease one from the 2400, want a holiday then from the 2400. Its just like a wage...obviously.

And you still have your 730k, so theres your retirement pot.

People who say there is no capital appreciation? Well kind of but you're presuming you spend all 2400 per month.

Its totally doable but its all about beer money - beer lifestyle.

p.s 50k gets you a BMW M3 and a Ferrari 355 Spyder. Not exatly shabby and probably way out of your current working league.
And every year, inflation of, say, 3% (after all, we're just guessing at the numbers, aren't we?) will erode your income by 2.1%, so by year two, you'll be needing to eat into your remaining capital just to stand still. On that basis, the whole lot would be gone in 30 years.

And you're only 'earning' the national average all that time, assuming that it doesn't outstrip inflation itself...
You're presuming every penny gets spent and there is no surplus, nor asset increase or the fact that you can diversify into markets with low risk products providing an income that do that plus cover inflation.6

Cheib

23,235 posts

175 months

Wednesday 16th May 2012
quotequote all
F458 said:
Looking at these replies it seems that the advice from PH is that investing in property is THE best investment from now till the end of time!! Can't believe how many want to 'pay off mortgages' and 'pay for a property outright' - there is probably not a better time to borrow money, how long are interest rates going to be at 0.50% for?

You can borrow large sums for 3% p/a with a decent deposit! Why pay off your mortgage unless it is at a v high rate currently, even if it was then use some of the £1M to reduce your current high rate by providing a larger deposit with it. Why is there so much confidence in the housing market? where can you all see house prices going in the next 5/10/20 years? Do you know something I don't?

Surely the answer is invest the £1M in a diversified portfolio which does not include JUST property and either rent a nice house or get a cheap mortgage on one.

By 'paying off the mortgage' and 'buying houses for cash' you are putting all your eggs in one basket and not maximising your capital.
The trouble is with this argument is that that you cant take long term investment decisions based on current interest rates. I'd also love to know where you can borrow 3% money against anything other than your primary residence and obviously if it's your primary residence you borrow against it's not tax efficient.

I'd invest it in property because it's a pretty good self-indexing investment if bought in the right areas and provides decent capital appreciation as well as an income. Though I'd be buying in this case for the income. I've also already got plenty of other investments elsewhere so the property investment is actually a diversification.

13th

3,169 posts

213 months

Wednesday 16th May 2012
quotequote all
Well I'm not going to worry about Friday's draw;

I WON, I WON, I WON!!!!!!

YAY £4.70! at this moment I'm deciding between paying off the mortgage, running for the coast or having extra cheese on my lunchtime sandwich!

I really never thought it would happen to me; so very VERY excited cloud9

Hairspray

6,225 posts

207 months

Wednesday 16th May 2012
quotequote all
Well, I'm only 19 so I couldn't (and wouldn't) want to retire.

It would give me the ability to get a start in my industry without having to worry too much about the horrific wages, and I would intend on working my whole life anyway. As would the OH.

A mil would give me:

400K- to buy and do up a house. Probably not 'dream home' level (not around here anyway), but it would do for 20 years or so.
This would do- http://www.primelocation.com/uk-property-for-sale/...
Or this (more parking)- http://www.primelocation.com/uk-property-for-sale/...
Or- http://www.primelocation.com/uk-property-for-sale/...

50K- 12K MINI Cooper S Convertible. http://www.pistonheads.com/sales/3825610.htm
28K Porsche 997 Vert. http://www.pistonheads.com/sales/3875950.htm
0.5K Volvo 245GL (tip runs, the dog etc... plus I love old Volvos. I want an orange one like my granddad had). -
http://www.carandclassic.co.uk/car/C301544
7K Mercedes 350SL - http://www.carandclassic.co.uk/car/C289140
2.5K Mini Cooper. - http://www.carandclassic.co.uk/car/C301593

40K- 20K each to my mum and dad.

200K- student let. My landlord makes almost 25K a year out of me and my housemates, and certainly doesn't spend that on fixing it.

150K- start property developing with the OH (his career choice).

Remaining 160K in the bank.




MrJuice

3,356 posts

156 months

Wednesday 16th May 2012
quotequote all
I would carry on pretty much as normal but would put 200k into a property (rest from my previous earnings) and give at least 500k to charity and 300k in the bank to invest when the right opportunity presents itself.

anonymous-user

54 months

Wednesday 16th May 2012
quotequote all
Cheib said:
F458 said:
Looking at these replies it seems that the advice from PH is that investing in property is THE best investment from now till the end of time!! Can't believe how many want to 'pay off mortgages' and 'pay for a property outright' - there is probably not a better time to borrow money, how long are interest rates going to be at 0.50% for?

You can borrow large sums for 3% p/a with a decent deposit! Why pay off your mortgage unless it is at a v high rate currently, even if it was then use some of the £1M to reduce your current high rate by providing a larger deposit with it. Why is there so much confidence in the housing market? where can you all see house prices going in the next 5/10/20 years? Do you know something I don't?

Surely the answer is invest the £1M in a diversified portfolio which does not include JUST property and either rent a nice house or get a cheap mortgage on one.

By 'paying off the mortgage' and 'buying houses for cash' you are putting all your eggs in one basket and not maximising your capital.
The trouble is with this argument is that that you cant take long term investment decisions based on current interest rates. I'd also love to know where you can borrow 3% money against anything other than your primary residence and obviously if it's your primary residence you borrow against it's not tax efficient.

I'd invest it in property because it's a pretty good self-indexing investment if bought in the right areas and provides decent capital appreciation as well as an income. Though I'd be buying in this case for the income. I've also already got plenty of other investments elsewhere so the property investment is actually a diversification.
i want to pay off my mortgage because it means i have somewhere to live until i choose to move or sell, emigrate etc. there is an assumption made by many that everyone who buys a house is desperate for it to rise in value but to be honest, i have never understood that. i just dont want to be at the mercy of scumbag landlords anymore.

it does make me laugh when people moan about the value of their house not rising as much or as fast as they would hope. when you buy a house to live in, i would have thought its primarily for security and not becuase its an an asset that might appreciate in value? if it does go up in value then its a bonus surely?? its a greed mentality. i appreciate buying to let as an investment or buying to fix, repair and sell on is slightly different but people dont buy anything else and expect it to rise in value quite like their houses...

Cotty

39,527 posts

284 months

Wednesday 16th May 2012
quotequote all
MrJuice said:
I would carry on pretty much as normal but would put 200k into a property (rest from my previous earnings) and give at least 500k to charity and 300k in the bank to invest when the right opportunity presents itself.
500k to charity eek

oobster

7,090 posts

211 months

Wednesday 16th May 2012
quotequote all
Same as a lot of others, detached 4-bedroom house with double or triple-size garage, 911 as the weekend/summer toy with a Range Rover or Audi A/S8 for tooling about in, rest left in the. bank to slowly fritter away/live comfortably on - watches, holidays, F1 trips etc.