How to spend it
Discussion
Shnozz said:
GT3Manthey said:
Are you talking from actual experience ?
I am not. I have no children. That's not to say I haven't witnessed it, however. Some of my friends with grown up children have prospered when the kids have flown the nest. Almost returned to (sickening 
) childhood sweethearts and off on holidays again, weekend breaks and back to "them" time. Others have found that in that intervening 20 years they have grown apart and the kids have been the cement. Taken away, they have nothing in common. I don't think its unique.keo said:
thenetwork said:
Invest it...money makes money.
Look long term.
Of course because £10 million quid just isn’t enough...Look long term.
Sure it is a decent chunk but it wouldn't be luxury yachts and spending with gay abandon.
Caddyshack said:
10 mil from a standing re-start and no further income is not actually all that much these days if you need to buy a house and secure an inflation proof income plus have some hobbies and cars etc.
Sure it is a decent chunk but it wouldn't be luxury yachts and spending with gay abandon.
love itSure it is a decent chunk but it wouldn't be luxury yachts and spending with gay abandon.
Top trolling
Caddyshack said:
keo said:
thenetwork said:
Invest it...money makes money.
Look long term.
Of course because £10 million quid just isn’t enough...Look long term.
Sure it is a decent chunk but it wouldn't be luxury yachts and spending with gay abandon.
The part about £10m not being all that much? Well, that's subjective and dependent on the lifestyle one is seeking to achieve / maintain. You should have qualified your statement to that effect.
TheJimi said:
The part about yachts is true, certainly anything approaching a superyacht.
Up to a point, Lord Copper. You can buy a "yacht" for £20k - sailing as a sport is much more accessible & friendly than people think. Actually a good thing for OP to consider taking up & he may meet like-minded people (the "idle rich" 
).NickCQ said:
TheJimi said:
The part about yachts is true, certainly anything approaching a superyacht.
Up to a point, Lord Copper. You can buy a "yacht" for £20k - sailing as a sport is much more accessible & friendly than people think. Actually a good thing for OP to consider taking up & he may meet like-minded people (the "idle rich" ).Hence, I've offered no denial that you can buy a yacht for £20k.
Edited by TheJimi on Wednesday 26th May 13:28
Everyone I know who has come into that amount of money through good luck, work or otherwise has always complained about not knowing what to do. They complain about being bored.
I'd find something constructive to do with the majority of your time, and then make the absolute most of the opportunity you have with the free time remaining. What makes you sad or angry in life? Put some time and money into that and it's bound to be rewarding.
I'd also recommend staying grounded, and do something every week that reminds you that you're only human. You come across as a decent bloke in your post, so I'm sure it won't be difficult. Both the nicest, and the worst humans I've come across were worth close to 9 figure sums.
I'd find something constructive to do with the majority of your time, and then make the absolute most of the opportunity you have with the free time remaining. What makes you sad or angry in life? Put some time and money into that and it's bound to be rewarding.
I'd also recommend staying grounded, and do something every week that reminds you that you're only human. You come across as a decent bloke in your post, so I'm sure it won't be difficult. Both the nicest, and the worst humans I've come across were worth close to 9 figure sums.
TheJimi said:
"certainly anything approaching superyachts" - did you miss that qualification?
Hence, I've offered no denial that you can buy a yacht for £20k.
Plenty of people cash out of a business and buy a 60+ ft yacht to do an ARC and cruise around the Caribbean for a few years. Easily within reach at OP's net worth. I think a "superyacht" is technically 80+ ft but a big Oyster is certainly approaching that.Hence, I've offered no denial that you can buy a yacht for £20k.
A few of my mates have cashed out of businesses, some under and some over £10m
One who got £2m and left a £150k job was surprised how quickly he burned through it and after some nice holidays, watches, cars and a house soon found he needed a job...within about 3 years.
One who did around £10m spent about £3m on a farm, bought some nice cars, a holiday home plus a couple of buy to lets. He too got quite scared by how fast the money pot was dwindling.
The thing is that most people who make £10m from a business sale etc. already have a lifestyle that involves a decent house, decent holidays, expensive area and often things like school fees so if you are used to outgoings with a burn rate of something like £5-6k net a month it does take some prudence not to be wasteful but they also expect to treat themselves to something significant like some cars or a bigger house.
Speak to any wealth manager and they will tell you that £40k per yr is about what you can expect per £1m invested in a safe place so you would need maybe £4m invested to retain a decent level of income, if you then do say £2m on a house(s) plus stamp duty then some cars and some £20k holidays it does not leave a huge amount to just spend willy nilly.
A lottery win of £2-3m would not allow many people to retire and continue spending at their normal rate.
One who got £2m and left a £150k job was surprised how quickly he burned through it and after some nice holidays, watches, cars and a house soon found he needed a job...within about 3 years.
One who did around £10m spent about £3m on a farm, bought some nice cars, a holiday home plus a couple of buy to lets. He too got quite scared by how fast the money pot was dwindling.
The thing is that most people who make £10m from a business sale etc. already have a lifestyle that involves a decent house, decent holidays, expensive area and often things like school fees so if you are used to outgoings with a burn rate of something like £5-6k net a month it does take some prudence not to be wasteful but they also expect to treat themselves to something significant like some cars or a bigger house.
Speak to any wealth manager and they will tell you that £40k per yr is about what you can expect per £1m invested in a safe place so you would need maybe £4m invested to retain a decent level of income, if you then do say £2m on a house(s) plus stamp duty then some cars and some £20k holidays it does not leave a huge amount to just spend willy nilly.
A lottery win of £2-3m would not allow many people to retire and continue spending at their normal rate.
raceboy said:
Felix Dennis said:
If it flies, floats or fornicates, always rent it..
Caddyshack said:
A lottery win of £2-3m would not allow many people to retire and continue spending at their normal rate.
Taking a 3% Safe Withdrawal Rate your £2-3 mm would support £60-90k post-tax spending p.a. protected from inflation indefinitely, equivalent to well north of £100k pre tax income. That would be a material lifestyle upgrade for 95% of the population, assuming enough self-control not to blow it faster.Clearly if one has been earning & spending £100+k for years like your mate, that won't cut it.
It'd have been even more expensive to buy it.
The only other boat quote I think of is....
"The two happiest days in a boat owner’s life: the day you buy the boat, and the day you sell the boat."
Obviously monetary quantities are all subjective but lets say the OP is 55, realistically that gives you 25 years if you're lucky, and leading the lifestyle I'd opt for it'd be bloody optimistic, if you chucked the cash in a binbag you could pull out over £30k a month for living, a quick google and I can find a very nice 2 bed apartment overlooking Central Park for £5k a month, leasing a supercar is about another £2k leaving you £4k a WEEK to blow coke off high class hookers bums.....I really don't think I'd manage 25 years of that but it'd be fun trying.
The only other boat quote I think of is....
"The two happiest days in a boat owner’s life: the day you buy the boat, and the day you sell the boat."
Obviously monetary quantities are all subjective but lets say the OP is 55, realistically that gives you 25 years if you're lucky, and leading the lifestyle I'd opt for it'd be bloody optimistic, if you chucked the cash in a binbag you could pull out over £30k a month for living, a quick google and I can find a very nice 2 bed apartment overlooking Central Park for £5k a month, leasing a supercar is about another £2k leaving you £4k a WEEK to blow coke off high class hookers bums.....I really don't think I'd manage 25 years of that but it'd be fun trying.
NickCQ said:
Caddyshack said:
A lottery win of £2-3m would not allow many people to retire and continue spending at their normal rate.
Taking a 3% Safe Withdrawal Rate your £2-3 mm would support £60-90k post-tax spending p.a. protected from inflation indefinitely, equivalent to well north of £100k pre tax income. That would be a material lifestyle upgrade for 95% of the population, assuming enough self-control not to blow it faster.Clearly if one has been earning & spending £100+k for years like your mate, that won't cut it.
If you withdraw 3% from day 1 then you are eroding the capital before it has time to grow so you also need to have £100k to burn in that first year. Inflation tends, in the long term, to halve the spending value of cash every 10 years. We have just not seen huge inflation recently.
I am assuming that the majority of people who can take £10m from somewhere will be very used to more than £100k pre-tax income which only nets to around £5400 per month which actually does not go very far these days (mortgage, car X2, school fees for 2-3 kids and a holiday plus the relevant insurances and a pension)
Caddyshack said:
A lottery win of £2-3m would not allow many people to retire and continue spending at their normal rate.
And this just highlights the different ends of the financial spectrum, I'd give myself another 30 years life left if I'm lucky, so £2m again just left in a binbag in the spare room would allow me over £66k a year, comfortably more than my households combined annual income, so yes, I could very easily retire tomorrow with a £2m nest egg and see an UPGRADE to my financial position, and don't consider myself to be anywhere near the poverty line. 
raceboy said:
Caddyshack said:
A lottery win of £2-3m would not allow many people to retire and continue spending at their normal rate.
And this just highlights the different ends of the financial spectrum, I'd give myself another 30 years life left if I'm lucky, so £2m again just left in a binbag in the spare room would allow me over £66k a year, comfortably more than my households combined annual income, so yes, I could very easily retire tomorrow with a £2m nest egg and see an UPGRADE to my financial position, and don't consider myself to be anywhere near the poverty line. It's the same every time we get a thread on the topic, you get PH'ers wading in, taking about how £x million wouldn't even touch the sides. The reality is that there's a very small number of people for whom £2-3m wouldn't be a massive life changer.
raceboy said:
Caddyshack said:
A lottery win of £2-3m would not allow many people to retire and continue spending at their normal rate.
And this just highlights the different ends of the financial spectrum, I'd give myself another 30 years life left if I'm lucky, so £2m again just left in a binbag in the spare room would allow me over £66k a year, comfortably more than my households combined annual income, so yes, I could very easily retire tomorrow with a £2m nest egg and see an UPGRADE to my financial position, and don't consider myself to be anywhere near the poverty line. Gassing Station | The Lounge | Top of Page | What's New | My Stuff