How to spend it

[SpartacusF]

OK this is first world problem and I'm not looking for sympathy or admiration. After three decades of a dutiful life, working (too) hard, being a decent husband and dad, all of a sudden I'm about to have a lot more money, and a lot more time. And be a lot more single.

Sure, I have hobbies, including PH, that lapsed for the past 20 years which I'll take up again, but I'd be interested in leftfield responses to the question of how to spend it when time and money are no longer limited.

[SpartacusF]

Thanks all, some good reminders here about what is important in life. I have travelled quite a lot but was usually the passing-through sort, not stay-a-while and find out more, so will definitely investigate. I do like sailing and have chartered a lot, but a trans-ocean is way beyond my attention span, and the faff factor of boat ownership seems huge. This being PH I will start spannering again and was thinking historic racing, but would have to stop it from becoming a time pit.

To clarify, eight figures (GBP), grown-up offspring, and divorcing (equitably!).

[SpartacusF]

GT3Manthey said:

Was just wondering if there was any need for the OP to mention "8 figures"....if you have enough you know you have enough .
Anyhow good luck to him. Hope the impending divorce doesn't scupper plans

Because a couple had asked and see the original post. The divorce has been on hold over C-19 but was always semi-amicable and I wouldn't hide any of the assets, that's a bit of a rubbish way to wind up 30+ years.

NickCQ said:

I suspect it's a lot more boring than that. Work in a specialised but growing industry... ascend to management level... roll your equity in the company for a couple of turns through PE sponsors / IPO. Cash out when you have enough / don't have the energy to sign up for a another five years. Trouser 10+ million quid.

Very close.

The Moose said:

Firstly, nice job!!

I've seen several people close to me go through liquidity events such as this (both smaller, and larger amounts) and I see it really coming down to a handful of different things:

1. Do you mind the possibility of needing to work in the future? If you have decided you are never going to work again, you'll want to take a more conservative approach both with your investments and your spending. On the other hand, if you're happy to go back into work in the future, you may be more willing to risk it all on an investment of some sort with the hope of a much larger return.

2. What to do with children? Do you want to leave a substantial legacy when you die/do you want to give them a substantial amount of money so you can see them enjoying it/do you want to leave them a little/do you want to leave them nothing? Again this will dictate your investment and spending pattern...not to mention IHT planning.

3. Work out your budget - it's remarkably easy to blow through large sums of money. Hello lotto winners! You'll find you get tempted by things you never would have considered...just because the $$$ are there (I have personal experience here). One of the people I admire the most with their lifestyle post-sale will change their schedule to dates where business/first is a good deal...despite being able to buy the plane. Obviously a budget can be changed to suit your wants (note, wants not needs) however having a plan (and sticking to it) of how much you're going to spend each month and roughly where it's going will actually give you freedom to spend and knowing your long term financial goals will be ok as you won't impulse a private jet or a handful of foreign homes etc.

At the end of the day, you can do the same 3 things with your money like everyone else...just with more zeros. Give it, save it or spend it. Don't let anyone tell you what to do with your money - including your kiddos!

Oh, and please don't hang around with people who are impressed by your money. It's not a good look for them or for you!

1. I don't need to work but do like it. I have another couple of ideas related to my first, successful, start-up, just I'll do it differently. Gamble what I have? No, probably not. Without a nudge I would probably keep working, some of these ideas could be that nudge. I think that's what I am looking for.

2. I'll help but not set them up for life - fatally demotivating.

3. A plan is a good idea, at least I'll know what is spare and I can safely pass elsewhere.

And to your last point, talking about what you've got is not cool, and I can't even share much of this with my equally alpha chums. I don't know what the impact will be on future lady friends, but again my instinct is to be discrete. I'll leave the Aston round the corner.

[SpartacusF]

Thanks all, got some helpful stuff here and some leftfield ones. I clearly haven't lived! Life, or time, overseas is a thing I'd always half dreamt of, so yes, now is the time. I tried flying - I get the safety thing and everything certified but not conducive to diy/tinkering and I was bored. Another family is biologically impossible, phew, I could have been tempted otherwise. A couple of chums have done that in their late 50s and are loving it. Coke 'n hookers is a recurring theme, not my bag but sounds like lots of fun, though I must look into the dating game, I'll search for a PH thread.

As to the threads about median pay and how much is enough, we all adapt and most of us on here will have had hard times. I'm OK with our tax regime redistributing some of this. The CGT bill doesn't bear thinking about.

[SpartacusF]

Shnozz said:

Would you not qualify for entrepreneur's relief?

That was taken away a couple of years ago, now it only applies to the first million. (You used to pay only 10% tax on the first 10 mil of a business sale, so 'only' paid £1m tax. Now it is CGT at 20% for nine and 10% for one, or £1.9m).

[SpartacusF]

diametric123 said:

OP

I’m slightly ahead of you (cue haters to start hating...) but my thoughts:
- 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
- fundamentally recognise the gift you’ve created for yourself and wake every day with a smile!

Thanks diametric, helpful to nail down the principal issues and choices. Like you, relieved no haters, loving the advice.

SCEtoAUX said:

..... powerfully built company director dominate the stairs and hammer sausages into a lawn....
Thank me later.

Priceless reminder, thank you. Printed and on the fridge door.

glennjamin said:

Buy Aston Martin join the member's club and travel around doing their events..

I joined the MGOC 30+ years go but couldn't deal with the 'type' and dress code. Is the AMOC just the same but with ironed slacks?

NickCQ said:

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!

You're not kidding. I've spoken with four, purely for the free yak time to get my own head around this stuff, and they all blow the same flattery smoke. It's been curious how they are light on the details of the costs and none are prepared to divulge how they perform vs the other private wealth (https://www.assetrisk.com/research/our-services/#indices-pci). I will pay for when-to-take-what advice, annually as tax and health and other stuff changes, but for where-to-put-it, the robo services win. As diametric says, I'll do a couple of EISs for fun/interest.

dirty boy said:

Life is all about people and experiences, the latter being something you experience with those people.
Find likeminded individuals, share experiences, job done.
PS You're not from the East Coast are you? Weird that I know of someone who's in a remarkably similar position (business/wife/split etc)

This is the message that is coming though. No, not east coast US, London UK, but guess this is a pattern in baby boomers.