What would you do with £2m?
Discussion
Not a bad problem to have but a friend of mine has inherited just under £2m and doesn’t know what to do. He lives in a nice house and doesn’t want to move, he likes his job but doesn’t earn a massive amount.
He’s thinking of keep working but go part time and draw down on it until it’s gone and spend it on holidays and a decent car, etc.
He’s thought of buying a business but doesn’t want a full time job running it.
I’ve suggested he buys a few houses or flats and rents them out for an income or buys a house or two to renovate and sell on but he’s not that keen on that.
What would you do at the moment?
He’s thinking of keep working but go part time and draw down on it until it’s gone and spend it on holidays and a decent car, etc.
He’s thought of buying a business but doesn’t want a full time job running it.
I’ve suggested he buys a few houses or flats and rents them out for an income or buys a house or two to renovate and sell on but he’s not that keen on that.
What would you do at the moment?
Speak to Julian/ Intelligent Money (topic at top of finance forum and sponsor of PistonHeads)
I have no affiliation to them but plenty members on here would highly recommend them.
Alternatively speak to some local commercial surveyors about buying commercial property investments. (A lot less hassle than btl especially as generally the tenant is responsible for maintenance and repairs.)
I have no affiliation to them but plenty members on here would highly recommend them.
Alternatively speak to some local commercial surveyors about buying commercial property investments. (A lot less hassle than btl especially as generally the tenant is responsible for maintenance and repairs.)
Likes his house, likes his job. Sounds pretty contented to me. £2m ultimately isn't that much if he's still somewhere under 45. In the same situation I think I'd be seeing it as the mother of all cushions to take away any financial concerns, stay where I am, stick with the job, bank it and have the ability to treat myself from time to time and be generous to relatives, without going mad or being seen as a pot of gold to be leeched on.
I came into a big pile of money over the last few years and I have to say I’ve found it more of a burden than I expected. (Worlds smallest violin)
I never used to think about money that much but I now have this underlying worry of what to do and how not to screw it up. I still haven’t really made a decision I can commit to two years later.
Im also happy with what I have now and don’t like any of the options what to with the excess:
Property - Dont really want the hassle of tenants
Markets - Too volatile and took a spanking at the start of the Pandemic even though I was in low risk trackers
Money manager - Fees are high and not sure I could trust a firm to do it for me
Spread across banks - Worry about inflation as per all of the advice, but at least I could sleep well and 1.5% interest would easily get me home and dry
Have the same questions on working whether to do full time or part time or start a new business. I wouldn’t be doing it for the money so you have to really want to do it for other reasons.
I’ve been thinking about it a lot and I think I’m going to spread across the various options of cash, property and shares. I’m hoping the illiquidity of property will kind of protect me from myself making any silly decisions, and provide a baseline income so that I can relax about any money in the markets. But let’s see....
I never used to think about money that much but I now have this underlying worry of what to do and how not to screw it up. I still haven’t really made a decision I can commit to two years later.
Im also happy with what I have now and don’t like any of the options what to with the excess:
Property - Dont really want the hassle of tenants
Markets - Too volatile and took a spanking at the start of the Pandemic even though I was in low risk trackers
Money manager - Fees are high and not sure I could trust a firm to do it for me
Spread across banks - Worry about inflation as per all of the advice, but at least I could sleep well and 1.5% interest would easily get me home and dry
Have the same questions on working whether to do full time or part time or start a new business. I wouldn’t be doing it for the money so you have to really want to do it for other reasons.
I’ve been thinking about it a lot and I think I’m going to spread across the various options of cash, property and shares. I’m hoping the illiquidity of property will kind of protect me from myself making any silly decisions, and provide a baseline income so that I can relax about any money in the markets. But let’s see....
Edited by dmahon on Wednesday 6th May 18:19
Invest it modestly and wisely and never have to work again if you don't want to.
You're got your " f
k You Money"
Everything else is a bonus at that point.
You're got your " f
k You Money"Everything else is a bonus at that point.
RammyMP said:
Thanks for the replies chaps, I’ll pass the advice on. Buying commercial property sounds like a low hassle option but I get the feeling they may take Biggles’s advice!
I do commercial property for a living.Don’t get him to do that unless he knows what he is doing.
Get an Investment Manager to spread the risk and he can retire in style in 10 years when he wants to chill a bit more.
For me a million would go towards 10 -12 further btls, netting an extra £80k a year in rent and the other half would clear the home mortgage, throw a few quid at my brothers and sisters and buy that ferrari 360CS i always wanted, leaving just enough for kids uni.
The wife would then cancel my ferrari and chose a swanky villa in portugal instead for both our families to use as and when. She is mean like that.
The wife would then cancel my ferrari and chose a swanky villa in portugal instead for both our families to use as and when. She is mean like that.
Use 1 million to buy this
https://www.trademe.co.nz/a/property/residential/l...
plant trees
After a few years enjoy an income of 75,000 pounds a year from carbon credits, maybe more.
If they don't work chop trees down in 30 years and get perhaps 2.5 million, plant trees again...and repeat.
The bare land is about 1700 pounds an acre.
Could be worth looking at forestry land in the UK as well.
https://www.trademe.co.nz/a/property/residential/l...
plant trees
After a few years enjoy an income of 75,000 pounds a year from carbon credits, maybe more.
If they don't work chop trees down in 30 years and get perhaps 2.5 million, plant trees again...and repeat.
The bare land is about 1700 pounds an acre.
Could be worth looking at forestry land in the UK as well.
pay the mortgage off and finish the house including building a nice garage and do the garden = maybe 500k going all out.
spend few quid on a couple weekend cars, new daily, buy dad an XK150 = maybe 250k
buy a couple of houses to do up and rent out, then invest the rest however that works.
I'd keep working (not 30 yet).
spend few quid on a couple weekend cars, new daily, buy dad an XK150 = maybe 250k
buy a couple of houses to do up and rent out, then invest the rest however that works.
I'd keep working (not 30 yet).
I would pay off mortgage, small chunk for kids to get them on their way but without making it too easy for them, spend perhaps 100k on stuff, invest most of it in ftse100 funds and live off the interest.
I would also keep 'working', but have projects that I can dip in and out of. Property stuff, bit if charity work, perhaps get involved in some local small businesses
I would also keep 'working', but have projects that I can dip in and out of. Property stuff, bit if charity work, perhaps get involved in some local small businesses
Edited by covmutley on Wednesday 6th May 22:17
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