where do i bank a million safely?

[pimping]

theoretically if i won a million on the lottery or my shares went into overdrive where would i put a million so that it is safe?

is it only £50,000 the government will assure you of getting back if your bank crashes.

no millions on the horizon but not for trying!

[5potTurbo]

Spread the load - don't put all your egss in 1 basket, etc.

[Republik]

The Bank of Republik is always open to donations.

[pimping]

musclecarmad thats exactly the sort of advice i am after cheers.

the only thing is i don't need a property to live in and i don't need an income (re-invest dividends etc). sounds a bit mad i know but work provide accommodation (albeit not forever) and i am still working.

not made the million yet but have been investing ruthlessly for years now if anything comes of it i want be better informed than i currently am.

plus i play the national lottery by direct debit. 5 lucky dips every wed and sat!

[cocopop]

5 lottery lines each Wednesday and Saturday?! Won much?

I'd go for something similar to musclecar, big chunk into property, big chunk into blue chips, and a small chunk for a little playing with some higher risk investments.

I think my main problem would be the PH classifieds.

Edited by cocopop on Thursday 23 September 13:37

[pimping]

in 3 or 4 months i think i have won a tenner 3 times. but the exciting bit is the e-mail you get saying 'you have won'. the e-mail doesn't tell you how much you've won until you log on but for a bit its exciting.

so not really a good investment but only need to win big once!

[simonrockman]

Premium bonds give a regular return but you are limited to £30k

[cocopop]

I play the Euros, but only a couple of lines a week and like you say, one win is all it takes. Wouldn't look at it as any sort of money maker though, and the same for premium bonds.

[simonrockman]

If you put 20-30k in premium bonds you'll see 1 £25 or £50 cheque most months.

Simon

[DS3R]

simonrockman said:

If you put 20-30k in premium bonds you'll see 1 £25 or £50 cheque most months.

Simon

Possibly. It's not guaranteed. It never has been. There are several threads from disappointed owners with max holdings...

http://www.pistonheads.com/gassing/topic.asp?h=0&a...

Besides, if you have £1M, you’d have to be extremely anal (or have a crap set of advisors) to get excited about £25 a month!

[birdcage]

It's boring, you have to go no higher in theory than 50k per institution but your own bank in far lesss likely to go bust than the bank of Um Bongo (where you are covered) but you have to obey the rule and you soon run out of 'decent' banks.....

Then you have the online headache...Open an account in a bank mostly owned by the taxpayer and hope for the best.....

[Beardy10]

musclecarmad said:

I'd go with something like buying a £300k property to live in. Another property as an investment, £100k in cash and the rest in good blue chip shares, the £400/500k in shares could give an income of around £25,000 per year less 10% tax so around £22,500 net which would be just shy of £2k per month plus the property income.

On long term view and depending where you want to live I'd have a bigger house and less blue chip shares. You don't pay CGT on your primary residence.....but with that many shares you'd be looking at a hefty CGT when you come to sell them. Yes you have to maintain the house which will cost more with a bigger house but you do also get to enjoy it 365 days a year. That probably means you have to still work but you can do something you really want to do....

[pimping]

for some reason a big house doesn't really appeal.

steady shares with a good dividend look good. though i am always attracted to the riskier side of things!

[Beardy10]

pimping said:

for some reason a big house doesn't really appeal.

steady shares with a good dividend look good. though i am always attracted to the riskier side of things!

Shares with a good dividend are generally ones that are expected to under perform in terms of capital appreciation.....they are normally mature businesses where there is a perception of little growth opportunity in the business. Stock market investors are generally in it for capital apprecitaion so companies that don't appear to offer this trade at lower earnings multiples and thus pay higher dividends.

[Gargamel]

Coutts bank is the place for you.

I don't think they let you have an account unless you have 0.5m to deposit

[pimping]

good point Beardy10

[pimping]

who is that pic of the guy on the phone. i have seen it before is it like phone jacker or something? intrugued.

[Tiggsy]

birdcage said:

It's boring, you have to go no higher in theory than 50k per institution but your own bank in far lesss likely to go bust than the bank of Um Bongo (where you are covered) but you have to obey the rule and you soon run out of 'decent' banks.....

UK Gov wont let a UK High Street bank go under....NR proved the point.

[croyde]

Beardy10 said:

musclecarmad said:

I'd go with something like buying a £300k property to live in. Another property as an investment, £100k in cash and the rest in good blue chip shares, the £400/500k in shares could give an income of around £25,000 per year less 10% tax so around £22,500 net which would be just shy of £2k per month plus the property income.

On long term view and depending where you want to live I'd have a bigger house and less blue chip shares. You don't pay CGT on your primary residence.....but with that many shares you'd be looking at a hefty CGT when you come to sell them. Yes you have to maintain the house which will cost more with a bigger house but you do also get to enjoy it 365 days a year. That probably means you have to still work but you can do something you really want to do....

You can barely buy a studio flat in most parts of London for £300,000 yet your household costs would be cheap as they are so beedin' tiny.