How to spend it

[red_slr]

No one is hating on this thread..... a couple of jokes, which were funny, but hating?

[Pit Pony]

Caddyshack said:

Have you seen the cost of the tree house units, it's about £6k a week or more....I was wondering where they kept the hookers!

I'd be buying some woodland. And building a tree house. And then rent it out on Airbnb.

[Pit Pony]

gmaz said:

I'd get a house designed and built to exactly my requirements, using all the passivhaus technologies to make it as eco-friendly as possible.

You know that woodland I'm.buying ? I'm.buring it to keep.warm

[CustardOnChips]

diametric123 said:

OP

I’m slightly ahead of you (cue haters to start hating...) but my thoughts:

- obviously if this is your sole source of wealth you need to work out if you want recurring income or happy to just spend it all

- if you want income then your choices are capital markets, investment property or a trading business

- Personally I do all three because it gives me maximum opportunity to still work but with near 100% control of my time

- depending on where you live (I’m in London) then a town place and a country / overseas place will easily consume half the capital

- after that I’m a big fan of experiences over assets

- respecting PH I would suggest 2-3 toys is more than enough, as the logistics gets complex after that. My end-game is to have just one car for each purpose (touring, going fast, Classic etc)

- travel is our big thing: have a list of 25 things to do over time and working our way through it

Just quickly for the haters - I grew up with zero money - I stopped judging and started learning from more successful people early on and it worked well for me

OP - fundamentally recognise the gift you’ve created for yourself and wake every day with a smile!

No one has been anything other than positive as far as I can see. So, I'm struggling to see where the hater talk has come from?

Seems like you have a bit of a chip on your shoulder!

[dmahon]

Electronicpants said:

Get remarried and have a couple of kids, it's like a passive income in reverse, the rate my wife and children burn though cash is sometimes quite breathtaking.

This is the thing. Wife and kids accelerate the spending and make it harder to do the fun things like F1 tours and shipping the Ferrari collection internationally. I’d be living like an international playboy if I was single. As it is I’m just about to pay the wife’s credit card bill whilst getting ready to go to the soft play then a kids party tomorrow.

[chemistry]

OP - congrats!

For what it's worth, I would consider...

1) Prioritise your health; join a gym and get a personal trainer (if you aren't already in shape). If your health goes, all the Ferraris, second homes and fine wine will make no difference.

2) Start thinking about what sort of life makes you happy. This is a good place to start - yes I know it's Gyles Brandreth - but you need to find your own path: https://www.gylesbrandreth.net/blog/2019/1/21/for-...

3) Assuming it's £10m, put half away with a wealth manager that you trust, to be invested for income and growth and also get this structured for tax, inheritance, etc. That will be your safety net. Of the rest, 'invest' a good chunk in life enhancing assets - bigger house, ski chalet, F40, boat, art - and enjoy. These things won't necessarily make you money but should be broadly cost neutral (unlike coke and hookers...when that money is spent it's gone)...a second safety net, but more fun and less liquid. Next I'd also consider diversification from traditional stocks & bonds - say a modest BTL portfolio; psychologically this will help when there's the next market crash ("At least I've got the flats..."). Maybe look at some riskier, long term 'fun' investments such as SEIS and EIS qualifying angel investments too, in sectors you are experienced/interested in (which helps to de-risk them), say £0.5m over 5 years (depending on your income/tax position. Lastly, keep a 'modest' balance that you manage yourself - say £0.5m - so you aren't entirely reliant on your advisors (i.e. you keep up to date with markets) and can also use this as a relatively liquid pot of money for unexpected/frivolous things (Caterham Academy, or whatever).

4) Become a NED and/or volunteer (charity, magistrate, mentor, etc.) so you still have a useful purpose to life, but one which is sufficiently flexible that it doesn't stop you spending most of your time on the fun stuff. If this brings with it a modest income, that's even better, but that's not the main priority. Ultimately life isn't all about mucking about; a purpose is important (https://pauldolan.co.uk/happiness-by-design-finding-pleasure-and-purpose-in-everyday-life).

5) If in doubt, you rarely regret spending money on travel or property.

Good luck!

[Bonefish Blues]

dmahon said:

Electronicpants said:

Get remarried and have a couple of kids, it's like a passive income in reverse, the rate my wife and children burn though cash is sometimes quite breathtaking.

This is the thing. Wife and kids accelerate the spending and make it harder to do the fun things like F1 tours and shipping the Ferrari collection internationally. I’d be living like an international playboy if I was single. As it is I’m just about to pay the wife’s credit card bill whilst getting ready to go to the soft play then a kids party tomorrow.

Living the dream, living the dream

[Gecko1978]

a few pages back people were asking how much is enough I used to think I needed 5m or 10m minimum but I relaise at 42 £2m would do it. 800k would pay off my mortgage an give me rental incomes from 2 properties, the remining 1.2m / 30 years is £40 net no tax as you have the capital 40k is the same as earning circa 60k a year but you would not have to do a days work. So I could with £2m have 6k a month (with rental income) to live off for next 30 years taking me to 72....sure I might live beyond that but I would hope by then I had done all I wanted like seen my kids grow up get jobs, travlled even more and driven a nice car (used 911). what else would I want....rolex...or a casio....vintage red wine or a diet coke (I don't drink), more time at gym (membership is £40 a month).

I am working on a start up currently and the aim is to hit that £2m and then walk away nothing else just relax exercise an enjoy life. I dont need a Sf90 of a Hurican to do that (I would maybe if I won the lotto)

[A500leroy]

Give it all away to people that need it, Keep enough to cover your bills for the next 20 years,Then get yourself a minimum wage job to keep yourself occupied.

[NickCQ]

chemistry said:

3) Assuming it's £10m, put half away with a wealth manager that you trust, to be invested for income and growth and also get this structured for tax, inheritance, etc. That will be your safety net

I would not do this. Using a WM is a recipe to pay away 1-2% of your net worth annually for the privilege of being put in investments & structures that you could set up DIY with a few hours hard Googling.

You need to be meaningfully into double digits to make it worth employing someone else to manage it. £5m is not really different to £500k in this regard.

Edited by NickCQ on Saturday 29th May 19:03

[Caddyshack]

NickCQ said:

chemistry said:

3) Assuming it's £10m, put half away with a wealth manager that you trust, to be invested for income and growth and also get this structured for tax, inheritance, etc. That will be your safety net

I would not do this. Using a WM is a recipe to pay away 1-2% of your net worth annually for the privilege of being put in investments & structures that you could set up DIY with a few hours hard Googling.

It’s not that simple, the wealth manager knows what taxation and risk to utilise for areas such as CGT utilisation etc, how to build a portfolio sto suit you and to tell you the stuff that you don’t know that yo don’t know. You probably won’t make 1-2% difference buying direct either, most wealth managers will cost about 0.5% on a decent sized portfolio and if they don’t earn their keep you can turn it off.

[dmahon]

Caddyshack said:

It’s not that simple, the wealth manager knows what taxation and risk to utilise for areas such as CGT utilisation etc, how to build a portfolio sto suit you and to tell you the stuff that you don’t know that yo don’t know. You probably won’t make 1-2% difference buying direct either, most wealth managers will cost about 0.5% on a decent sized portfolio and if they don’t earn their keep you can turn it off.

Your 12k a year CGT allowance doesn’t touch the sides on a multi million portfolio.

I really don’t understand why people are paying wealth managers when the likes of vanguard are there with a few clicks, but maybe I’m missing something.

[NickCQ]

Caddyshack said:

It’s not that simple, the wealth manager knows what taxation and risk to utilise for areas such as CGT utilisation etc, how to build a portfolio sto suit you and to tell you the stuff that you don’t know that yo don’t know. You probably won’t make 1-2% difference buying direct either, most wealth managers will cost about 0.5% on a decent sized portfolio and if they don’t earn their keep you can turn it off.

Perhaps there's something I'm missing, but even £25k annually (0.5%) to be told how CGT allowances work doesn't feel like money well spent. Maybe learning to manage his assets could be something to keep OP occupied for the first couple of months.

If it is an IPO exit he will likely get aggressively cross-sold wealth management services by the relevant divisions of the investment banks running the book. Needless to say these pitches should be ignored!

[Caddyshack]

dmahon said:

Caddyshack said:

It’s not that simple, the wealth manager knows what taxation and risk to utilise for areas such as CGT utilisation etc, how to build a portfolio sto suit you and to tell you the stuff that you don’t know that yo don’t know. You probably won’t make 1-2% difference buying direct either, most wealth managers will cost about 0.5% on a decent sized portfolio and if they don’t earn their keep you can turn it off.

Your 12k a year CGT allowance doesn’t touch the sides on a multi million portfolio.

I really don’t understand why people are paying wealth managers when the likes of vanguard are there with a few clicks, but maybe I’m missing something.

A couples CGT allowance is a very useful tax free amount as part of a well thought out plan for tax efficient income and is very much part of a good multi million portfolio, especially with a unit trust aimed at growth and not income..it kind of shows the point I was making, then add that income to tax free income from ISAs and 5% return of capital from a bond etc, maybe bed and breakfast of a pension it is not all about just the investment advice. Yes, you are missing that a well thought out portfolio is much more than sticking it in vanguard.

Edited by Caddyshack on Saturday 29th May 22:15

Edited by Caddyshack on Saturday 29th May 22:16

[PistonGuy66]

If the OP really has worked hard and got that amount of money flopping about why would you need to ask what to do with it on here?????

[Mr Tidy]

I inherited nearly £100K from my late Mum's estate in April.

I'm hoping to move to a property with a garage that is 10' x 20+' soon - she would have been happy with that.

[Jasandjules]

With 10m plus I think I would try to spend a year going to every single F1 race... Ideally find a way to get into the paddock at each race....

Then perhaps a few months scuba diving and perhaps buying houses for each kid to set them up.

[ben5575]

PistonGuy66 said:

If the OP really has worked hard and got that amount of money flopping about why would you need to ask what to do with it on here?????

Possibly because his day job as might not have anything to do with finance? Maybe because successful people understand that they don't know it all and like to seek other opinions? That he can do so on here incognito?

Alternatively, it might just be a bit of fun to mull over on a sunny bank holiday weekend?

[SCEtoAUX]

Start a Pistonheads version of Only Fans.

People pay a few hundred quid to see some powerfully built company director dominate the stairs and hammer sausages into a lawn.

Or pay a pilot (there are probably a few on here but they keep it quiet) to skywrite "James Corden is a throbber" whilst flying a Piper Cherokee over your council estate.

Thank me later.

Edited by SCEtoAUX on Sunday 30th May 12:31

[m3jappa]

Is the median disposable income per household really 30k?

Sounds way too much.

I would have thought more like 5-10k.