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Advice Required On How To Invest An Inheritance Of 970k

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Can anybody give some advice on how to invest an inheritance of 970k to generate income for life, what would be the best kinds investments for this type of strategy? what sort of commissions are payable when taking out these investments. The required amount per annum is 80k-100k roughly 10% of the lump sum. Would appreciate any constructive feedback. Thanks

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Can anybody give some advice on how to invest an inheritance of 970k to generate income for life, what would be the best kinds investments for this type of strategy? what sort of commissions are payable when taking out these investments. The required amount per annum is 80k-100k roughly 10% of the lump sum. Would appreciate any constructive feedback. Thanks

970K to invest, and you come onto an internet forum asking the advice of complete strangers who's pedigree you have no way of veryfing.............yer right....NEXT :rolleyes:

Edited by Catch22

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970K to invest, and you come onto an internet forum asking the advice of complete strangers who's pedigree you have no way of veryfing.............yer right....NEXT :rolleyes:

Go find an ISA but firstly lower your expectations. You will get an income of £20-30k from that amount but you won't get much more than that unless you are 55 plus.

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If you are for real then:

Diversify - Low, Medium and High risk.

70% Low Risk, 20% Medium Risk and 10% High Risk wouldn't be a bad split.

Go and investigate. If you do all low risk you will get back about 50K but will be taxed on it.

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Go find an ISA

Er, I think you mean IFA...

IFAs are salespeople. See a financial planner (!)

My god, this officially my 1000th post!

Edited by Financial Planner

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Go find an ISA but firstly lower your expectations. You will get an income of £20-30k from that amount but you won't get much more than that unless you are 55 plus.

What nonsense. You could buy a prime commercial property with a blue chip tenant on a 15yr lease with 6% return. Thats £58000 ( not including buying costs). There will also be the potential of rent increases every 5 years and capital appreciation on the property at some point

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What nonsense. You could buy a prime commercial property with a blue chip tenant on a 15yr lease with 6% return. Thats £58000 ( not including buying costs). There will also be the potential of rent increases every 5 years and capital appreciation on the property at some point

While admirable, do you not think it risky to put all the cash into one asset? There is also the potential for rental voids and decreases and capital depreciation at some point. What if inflation outpaces the rental increases? What is blue chip these days anyways? Corus? GM? Ford? Oh, I know, how about a nice healthy airline! :rolleyes:

The amount of income you can withdraw indefinitely from a portfolio is called the safe withdrawal rate. It is somewhere around 4%. This will provide a steady income and your assets are fairly safe even through the roughest economic waters. see here.

There are many variations on the theme and a good CFP should advise you of several options. But really, why are you coming to HPC for advice? <_<

Edited by gone west

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I would see a certified financial planner - who charges an hourly rate

i think you are being a bit unrealistic in your level of income required from the lump sum

Sorry to correct you on the first point but 'they' are 500 different people and they all charge differently.

Agree with your next statement

cheers

fp

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£970K? - you either have or you haven't - either way you crave attention

I'd suggest showing off your wealth so everybody can see it ie penthouse flat in the centre of a major city and a top of the range Porshe...

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I'd buy a home and live rent and mortgage free.

Editted to say:

With that much money, you could buy some BTLs outright and live off the tennants.

Edited by Imp

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While admirable, do you not think it risky to put all the cash into one asset? There is also the potential for rental voids and decreases and capital depreciation at some point. What if inflation outpaces the rental increases? What is blue chip these days anyways? Corus? GM? Ford? Oh, I know, how about a nice healthy airline! :rolleyes:

The amount of income you can withdraw indefinitely from a portfolio is called the safe withdrawal rate. It is somewhere around 4%. This will provide a steady income and your assets are fairly safe even through the roughest economic waters. see here.

There are many variations on the theme and a good CFP should advise you of several options. But really, why are you coming to HPC for advice? <_<

I take your point but would have no probs in sticking most of it into a prime commercial property. If its on a 15 year lease there will be no void periods. There are still blue chips out there with very healthy surpluses of cash. IMHO!

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I take your point but would have no probs in sticking most of it into a prime commercial property. If its on a 15 year lease there will be no void periods. There are still blue chips out there with very healthy surpluses of cash. IMHO!

and if we see inflation of 5 or 10% in that 15 years? Your 6% yield begins to look anemic at best.

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You should really see some of the private banking wealth management people with that kind of money your first priority should be to protect much of that wealth from the taxman since any income you gain is likely to be taxed as income. you should diversify yourself lots and avoid overexposure to any one asset class that means. keep a mixture.

remember you MUST do everything you can to protect you wealth once its gone thats it finito over fini finished.

global equities - I would avoid the US but there is still value to be had elsewhere

bonds - you should keep a mixture of investment grade corporate debt and sovergin debt.

cash - an overlooked asset class in todays environment of greed, credit and inflation. it would be a foolish man who missed out on the liquidity of cold hard money.

property - like all assets this one is very overvalued at the moment - I would recommend it for diversification purposes only.

Hedge funds - with your kind of wealth there are a myriad of opportunities available which should not be correlated to any of the above asset classes. maybe something like Man's AHL could provide you with goood uncorrelated returns.

maybe commodities - a lot of people are into gold at the moment but I don't think it will last.

I can tell you things NOT to do with it too.

DO NOT - put it all in one asset class. what if that asset goes tits up ? e.g putting it all in property could be very deleterious to your financial heatlh.

DO NOT - put it in anything more high risk than a hedge fund and then only put a small amounts in anything risky. e.g don't start trading futures and options or anything like that.

don't spend it all at once. remember the less you spend the more it grows. I wouldn't spend more than 3% personally

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Can anybody give some advice on how to invest an inheritance of 970k to generate income for life, what would be the best kinds investments for this type of strategy? what sort of commissions are payable when taking out these investments. The required amount per annum is 80k-100k roughly 10% of the lump sum. Would appreciate any constructive feedback. Thanks

Get a 30k IO mortgage and buy up 10 of these puppies.

http://www.rightmove.co.uk/viewdetails-635...pa_n=4&tr_t=buy

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Can anybody give some advice on how to invest an inheritance of 970k to generate income for life, what would be the best kinds investments for this type of strategy? what sort of commissions are payable when taking out these investments. The required amount per annum is 80k-100k roughly 10% of the lump sum. Would appreciate any constructive feedback. Thanks

Buy 4 flats in Bucharest (Rom)... you have so much money ...I hate you :D

Buy Gold

Use Maxi ISA on www.iii.co.uk NOW.......................06/07 next month ;)

There is no point to have saving account except regular savers... A&A, HBOS or ...

Buy more Flats... in Bucharest...btw I am not Romanian

Oh dear... What to do with the 800K left?

Buy more Funds :lol:

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  • 301 Brexit, House prices and Summer 2020

    1. 1. Including the effects Brexit, where do you think average UK house prices will be relative to now in June 2020?


      • down 5% +
      • down 2.5%
      • Even
      • up 2.5%
      • up 5%



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