Investing millions

Smithy · 29 Dec 2015 at 12:40

It's a shame there aren't any finance gurus in here giving answers as I think it's an interesting question.

Someone on Reddit once gave a detailed response of what to do after winning the lottery, but it's rather US-centric; https://www.reddit.com/r/AskReddit/..._a_656_million_dollar_lottery_what_do/chba4bf

I'd like to see a UK equivalent.

agnes · 29 Dec 2015 at 12:45

Ok, so, how about this, I am getting my several hundred k a month from interest. Can I put that into my own company, then pay my self minumum wage with a shed tonne of dividends pay?

It's how I used to roll as a contractor. 20% tax, mmmmmm.

agnes · 29 Dec 2015 at 12:46

Smithy said:
It's a shame there aren't any finance gurus in here giving answers as I think it's an interesting question.

Someone on Reddit once gave a detailed response of what to do after winning the lottery, but it's rather US-centric; https://www.reddit.com/r/AskReddit/..._a_656_million_dollar_lottery_what_do/chba4bf

I'd like to see a UK equivalent.

Thanks man, I thought it would be a good question and a fun one. Get's you thinking. Maybe those that won lost their fortune by not thinking about long term investment and spending.

chroniclard · 29 Dec 2015 at 12:52

Interesting reddit post. IIRC there was a UK program on lottery winners a while back and a lot of them were not happy at all.

Raymond Lin · 29 Dec 2015 at 13:08

invest in properties, properties and more properties.

Don't need a big massive house that require a butler or maid, doubt I'll be in one place for long without wanting to go somewhere. Probably just go travelling for a couple of years, see the world, then come back and decide what to do.

Deathjester · 29 Dec 2015 at 13:09

chroniclard said:
Interesting reddit post. IIRC there was a UK program on lottery winners a while back and a lot of them were not happy at all.

Yeah I remember that one.

It is a very interesting post, and some very good advice.

Although Lotto does have a lot of advisers setup for this kind of thing as well, and they don't have a professional interest in what you do with your money.

I think the points about changing your numbers etc. is a very good one.

Also I (personally) wouldn't go public with my win, My parents have had a lot of good advice on setting up trusts etc. and as such I would probably do the same.

Spend some time with accountants calculating incomes from various fixed term, fixed return investments. Such as G7 treasury investments.

Lets assume you win the £40,000,000:

Provide 15% for your family in trusts etc. which leaves you with £34,000,000

Then take probably £25 million of this and invest in fixed return investments of around 3-5% (3% returns £750,000 p/a) and leaves you £9 million cash to "play" with.
Which would allow me to buy a new house, car etc. and I'd have a safety net of £750,000pa (less 20% tax which is standard on investments).
Which leaves you with around £50,000 / month pay.

agnes · 29 Dec 2015 at 13:10

Aye, the more I'm reading about it, the more stress it looks! Insane really.

Sure, the initial blow out would be wonderful, but it's looking like hell from there on out. I suppose unless you've grown up/created your own fortune. You simply wouldn't be able to adjust fast enough to truly keep it together.

Zethor · 29 Dec 2015 at 13:15

Let an investment bank handle it.

Raymond Lin · 29 Dec 2015 at 13:16

agnes said:
Aye, the more I'm reading about it, the more stress it looks! Insane really.

Sure, the initial blow out would be wonderful, but it's looking like hell from there on out. I suppose unless you've grown up/created your own fortune. You simply wouldn't be able to adjust fast enough to truly keep it together.

The biggest challenge is not let it change you.

If you can live as you do now, but debt free, mortgage free, it wouldn't be a problem. Even if you do nothing at lose a huge chunk in income tax from interest you still have loads to live on.

booyaka · 29 Dec 2015 at 13:21

amigafan2003 said:
£30mil will get you around a 7% return after tax.

Money makes money.

Please do let me know on this one - where do you get 7% after tax??

Skeeter · 29 Dec 2015 at 13:24

The one thing I would do is employ someone far more qualified than me to manage my investments.

pastymuncher · 29 Dec 2015 at 13:33

Has anybody actually won the jackpot since they added the extra 10 balls? The newsagents shop down the village said that hardly anybody is doing the lotto anymore as there's practically no chance of winning so the majority have switched to Euromillions or stopped playing altogether. I think they need to think again with regards to Lotto. Perhaps if they weren't so greedy and just stuck to a single draw per week then more people would play.

mrk · 29 Dec 2015 at 13:35

Isn't the Irish Lotto the one to play due to the better odds of winning? Sure smaller jackpots, but what's "small" about several million anyway?

EdGey · 29 Dec 2015 at 13:38

Personally I'd probably be boring and look to property.

chroniclard · 29 Dec 2015 at 13:39

pastymuncher said:
Has anybody actually won the jackpot since they added the extra 10 balls? The newsagents shop down the village said that hardly anybody is doing the lotto anymore as there's practically no chance of winning so the majority have switched to Euromillions or stopped playing altogether. I think they need to think again with regards to Lotto. Perhaps if they weren't so greedy and just stuck to a single draw per week then more people would play.

lol, odds of winning Euromillions are even less.

HungryHippos · 29 Dec 2015 at 13:42

I'd probably not do anything too crazy, I'd try to get a rolling yearly income going after buying a nice house/car etc, I'd split the money into various things too rather than putting it all into the bank. Shares/unit trusts, ISA, more than one bank account, bonds maybe, premium bonds, investment in bricks and mortar.

craig_t · 29 Dec 2015 at 13:46

I would donate to forum member agnes £5 mil...

Brizzles · 29 Dec 2015 at 13:47

pastymuncher said:
I think they need to think again with regards to Lotto. Perhaps if they weren't so greedy and just stuck to a single draw per week then more people would play.

Agree, i used to buy the occasional 'Lucky Dip' when it was the once a week Saturday draw.

Now i wouldn't know which 'Lotto' to buy.

I laugh at the Postcode lottery TV advert that shows a giant cheque and everyone celebrating for.......................£2500 !!!

Not that having £2.5k isn't welcomed, but not what i would class as a Lottery winning sum

Mr Badger · 29 Dec 2015 at 13:49

40 million is crazy money, however you could make it a lot more manageable with a few poor marriage choices. One exotic teenage fashion model you meet at a party and one childhood sweetheart that looks you up when you are feeling nostalgic should do it. Throw in some expensive divorce lawyers and maybe a baby and you'll be down to single millions in no time.

Brizzles · 29 Dec 2015 at 13:54

Mr Badger said:
40 million is crazy money, however you could make it a lot more manageable with a few poor marriage choices. One exotic teenage fashion model you meet at a party and one childhood sweetheart that looks you up when you are feeling nostalgic should do it. Throw in some expensive divorce lawyers and maybe a baby and you'll be down to single millions in no time.

You'd need a few more wins to cover that :eek:

Most expensive divorces

Alec Wildenstein's divorce from Jocelyn Wildenstein; estimated at $3.8 billion.