5 Mil - what would you do?
Discussion
Over the Christmas/New Year period I was having a beer with a mate of mine who has a series of BTLs.
He's got a bit of equity in them - we roughly guessed (fag packet calcs) that if he liquidated, he'd have about 5 Mil in equity.
Given Mr Osborne's attack of the landlord and suspected future attacks (easy and soft target) we were chatting about liquidating and starting a business.
He's not new to running businesses (big businesses also) - it's just what to do!
So, the question to you, PHers, on this fine Wednesday evening is what business would you start with £5 Mil, cash. Only thing is that the business plan needs to show an annual return of a minimum of £500k per year (within 3 years).
He's got a bit of equity in them - we roughly guessed (fag packet calcs) that if he liquidated, he'd have about 5 Mil in equity.
Given Mr Osborne's attack of the landlord and suspected future attacks (easy and soft target) we were chatting about liquidating and starting a business.
He's not new to running businesses (big businesses also) - it's just what to do!
So, the question to you, PHers, on this fine Wednesday evening is what business would you start with £5 Mil, cash. Only thing is that the business plan needs to show an annual return of a minimum of £500k per year (within 3 years).
Easy and soft target because of the unregulated and often untaxed income from BTL and private rental properties, driving up property prices for those of us who aren't 50 and don't own our own houses yet... :-)
These days it's hard to start/run a business unless you are already good at something, hence why asking - what kind of business, makes me think that's not the right thing to do!
I would take the 5m, whack 3M in savings. The interest alone on that should be relatively good, at 0.5% that's what, 15k a year? I'm sure you can find higher paying interest accounts, splitting it down into 75k chunks with various banks (limit of protection) will also find it easier to get better interest rates! (many I see say up to 10k will give you 5% for example).
Have 1m to spend, as in whack it in your current account and buy what you want.
The other 1m I'd probably invest, 5% return may see you 50k in profit per year, more than enough to live on. Or buy/invest in a successful local business. Most of the reward for, relatively, little risk.
Creating a successful business is not easy these days!
These days it's hard to start/run a business unless you are already good at something, hence why asking - what kind of business, makes me think that's not the right thing to do!
I would take the 5m, whack 3M in savings. The interest alone on that should be relatively good, at 0.5% that's what, 15k a year? I'm sure you can find higher paying interest accounts, splitting it down into 75k chunks with various banks (limit of protection) will also find it easier to get better interest rates! (many I see say up to 10k will give you 5% for example).
Have 1m to spend, as in whack it in your current account and buy what you want.
The other 1m I'd probably invest, 5% return may see you 50k in profit per year, more than enough to live on. Or buy/invest in a successful local business. Most of the reward for, relatively, little risk.
Creating a successful business is not easy these days!
tight fart said:
Retire?
Unfortunately £5 mill is nowhere near enough to retire on and give the returns the OP's friend aspires to.Ideas from me, invest in BTL in another country with decent capital growth rates and a friendlier BTL tax regime.
Start / invest into / buy a business(es). I believe this would be the most likely way of getting the returns required within 3 years especially as he has experience of running businesses, also had the benefit of using entrepreneurs tax relief in the future (assuming he hasn't already used his lifetime allowance)
foliedouce said:
tight fart said:
Retire?
Unfortunately £5 mill is nowhere near enough to retire on and give the returns the OP's friend aspires to.Ideas from me, invest in BTL in another country with decent capital growth rates and a friendlier BTL tax regime.
Start / invest into / buy a business(es). I believe this would be the most likely way of getting the returns required within 3 years especially as he has experience of running businesses, also had the benefit of using entrepreneurs tax relief in the future (assuming he hasn't already used his lifetime allowance)
xjay1337 said:
These days it's hard to start/run a business unless you are already good at something, hence why asking - what kind of business, makes me think that's not the right thing to do!
This is a theoretical discussion - we both know what we would do...I just found it an interesting discussion.HoHoHo said:
He can buy my business (successful and of nearly 20 years), keep most of his original funds and still have a very good return
As you know, I've worked with you before Martin - you can keep your business The Moose said:
HoHoHo said:
He can buy my business (successful and of nearly 20 years), keep most of his original funds and still have a very good return
As you know, I've worked with you before Martin - you can keep your business p.s. Hope you're well Matt and HNY
xjay1337 said:
Easy and soft target because of the unregulated and often untaxed income from BTL and private rental properties, driving up property prices for those of us who aren't 50 and don't own our own houses yet... :-)
These days it's hard to start/run a business unless you are already good at something, hence why asking - what kind of business, makes me think that's not the right thing to do!
I would take the 5m, whack 3M in savings. The interest alone on that should be relatively good, at 0.5% that's what, 15k a year? I'm sure you can find higher paying interest accounts, splitting it down into 75k chunks with various banks (limit of protection) will also find it easier to get better interest rates! (many I see say up to 10k will give you 5% for example).
Have 1m to spend, as in whack it in your current account and buy what you want.
The other 1m I'd probably invest, 5% return may see you 50k in profit per year, more than enough to live on. Or buy/invest in a successful local business. Most of the reward for, relatively, little risk.
Creating a successful business is not easy these days!
I'm searching for the sarcasm in here, but I don't seem to be able to find it.These days it's hard to start/run a business unless you are already good at something, hence why asking - what kind of business, makes me think that's not the right thing to do!
I would take the 5m, whack 3M in savings. The interest alone on that should be relatively good, at 0.5% that's what, 15k a year? I'm sure you can find higher paying interest accounts, splitting it down into 75k chunks with various banks (limit of protection) will also find it easier to get better interest rates! (many I see say up to 10k will give you 5% for example).
Have 1m to spend, as in whack it in your current account and buy what you want.
The other 1m I'd probably invest, 5% return may see you 50k in profit per year, more than enough to live on. Or buy/invest in a successful local business. Most of the reward for, relatively, little risk.
Creating a successful business is not easy these days!
You're given £5m and your business idea is to put it in bank accounts which barely beat inflation?
xjay1337 said:
Easy and soft target because of the unregulated and often untaxed income from BTL and private rental properties, driving up property prices for those of us who aren't 50 and don't own our own houses yet... :-)
LMFAO you think its BTL that keep you off the property ladder? Nope its that fact that you think £5m should be invested in current accounts as they give a good return... LOLPlease tell me you don't have shareholders to answer too?
If you listen to what I said, I said whack 3m into savings. Simply to have it there.
Invest 1m. PLENTY to begin investing. Opportunity for more than enough return to retire.
However, if things don't go to plan you still have a chunk of money which you can fall back on to either buy some more property, either take out another chunk and continue investing or simply live off.
Invest 1m. PLENTY to begin investing. Opportunity for more than enough return to retire.
However, if things don't go to plan you still have a chunk of money which you can fall back on to either buy some more property, either take out another chunk and continue investing or simply live off.
The Moose said:
Over the Christmas/New Year period I was having a beer with a mate of mine who has a series of BTLs.
He's got a bit of equity in them - we roughly guessed (fag packet calcs) that if he liquidated, he'd have about 5 Mil in equity.
Given Mr Osborne's attack of the landlord and suspected future attacks (easy and soft target) we were chatting about liquidating and starting a business.
He's not new to running businesses (big businesses also) - it's just what to do!
So, the question to you, PHers, on this fine Wednesday evening is what business would you start with £5 Mil, cash. Only thing is that the business plan needs to show an annual return of a minimum of £500k per year (within 3 years).
I suppose it would depend on strengths, I think a restuarant franchise would be good. Where I live, people have been crying out for a KFC, the nearest one is 12-13 miles away. He's got a bit of equity in them - we roughly guessed (fag packet calcs) that if he liquidated, he'd have about 5 Mil in equity.
Given Mr Osborne's attack of the landlord and suspected future attacks (easy and soft target) we were chatting about liquidating and starting a business.
He's not new to running businesses (big businesses also) - it's just what to do!
So, the question to you, PHers, on this fine Wednesday evening is what business would you start with £5 Mil, cash. Only thing is that the business plan needs to show an annual return of a minimum of £500k per year (within 3 years).
Or just put it in the bank and live off the interest!
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