If You Were a millionaire...
Help
If you were a millionaire...what would be the best way to invest the money so you never have to work again and have enough money so your children also won't have to work again...hoping to repeat the cycle for generations to come...
- Invest in a well diversified selection of Investment Trusts (say 10-20) with an average yield of 3% to 4% per annum (from their dividend payouts).
- Only take the income, i.e. the 'natural yield' from the dividend payouts (which should rise with inflation).
- Never touch the capital (i.e. don’t sell the shares for income).
- Review your share holdings once a year and adjust your portfolio to maintain your ideal geographical and sector spread (i.e. to avoid having too many eggs in one basket)
- Ignore the ups and downs of the stock-market.
- Sleep like a baby
- Enjoy your rising £35,000 pa income.
If you are interested in the idea - look out for Investment Trust Dividend Heroes. More on these, here:
https://www.moneyobserver.com/news/next-generation-investment-trust-dividend-heroes-revealed
You could also invest in UK residential property and just take the rental income, whilst the flat/house price should keep pace with inflation....but that involves a lot more work.
But remember you can't take it with you. There’s no point being the richest person in the graveyard! As George Best said:
I spent a lot of money on booze, birds and fast cars. The rest I just squandered!
Now... how to get that first million?
Whilst the money didn't help George become the richest person in the graveyard it did help him become one of the youngest. (no disrespect intended just a warning that money shouldn't be misused)
Yes, indeed. Too much drink.
But I reckon George did pretty well to get to age 59, given the life he had.
Parents are not obliged to give an inheritance to their sons and daughters but they can, sometimes it's better off if no one gets anything otherwise it can create stupid wars between family members and go wild west on each other.
What would I'd do? Buy an island (they're not always excessively expensive), live in it with my own family, build a farm full of vegetables, fruits and animals so that there'd always be some sort of food. And on the side, drop dough on an investment that's profitable.
deepcore The government don't take your money when you die - unless you've allowed them to, even if they do they don't divi it out amongst the MPs - it becomes part of the national purse so indirectly benefits everyone else.
davidstockport So basically yeah it's going to the government who decides what to do with it.
I'd rather give money to my kids then.
So would most people - but to say the "Government takes it" is total nonsense. The government only takes it if you decide to let them.
If there's no next of kin in the same country, who automatically takes your money? Please enlighten me.
deepcore If there is no family traceable and the person who has died has decided (their choice) not to leave a will then the money is eventually claimed by the government which is for the benefit of all other people who live in the country. You sound as if you think the estate goes for individual members of the government. Incidentally "next of kin" is often misused it actually means "nearest blood relative" - which technically rules out spouses benefiting - which is not the case.https://en.wikipedia.org/wiki/Next_of_kin
Incidentally step children, unless formally adopted, do not have any automatic rights of inheritance. Which means my step-son or his children could not inherit anything other than what is in my will.
davidstockport What do you mean by estate?
Also do you really have to make a will? If an old person has kids there's no need to right since it'll automatically go to them.
A person's estate is: all the money and property owned by a particular person, especially at death. I agree there's often little need for any person to leave a will if they're quite happy for the automatic rules of inheritance to apply, thousands of lawyers who make a small fortune out of writing wills (and often make a pig's ear out of it) disagree.
I might add it can often be advisable to make a will perchance you or the person/s who would automatically inherit, die either close together or at the same time as yourself.
Join for free to get genuine deals, money saving advice and help from our friendly community
Chief Bargain Hunter
