Investing £1.5m

[nctoday]

Name changed so as to not out myself. We can see a lot of years ahead looking after elderly parents, so future work is likely to limited through caring for DPs.

Come share your thoughts about how you would invest £1.5m or thereabouts, to get on-going income, and not erode the real value of the initial investment. Likewise, are there any things to stay away from?

Thanks

My favourite investment would be doctors surgeries (to let), city apartments (to let) a portfolio of houses (to let) ....need I go on?

I agree with property rental income for city based places...

Well said Loopyhasanotherbean, I am also an IFA and have been quite disappointed in some of the derogatory comments contained in this thread, it is very clear that there has been some very poor advice and experiences undergone by joe public.

Diversification of assets is about the most important consideration, no matter the amount being invested or the individuals attitude to risk, having all your eggs in one basket (like property is just madness & asking for trouble IMHO).

The underlying tax considerations / tax efficiency, especially regarding IHT with a potential 40% liability could also form a significant part of the general recommendations.

A couple of things I would point out, contrary to earlier comment would be that I would be looking at more than 15 different funds & companies for any investment portfolio, and a recent cautious (Attitude to Risk) client portfolio I set up & reviewed this week had made more than 10% over the last year as an example of returns available, no guarantees, but with mix of the four main asset classes & diversification considerations, decent returns can be made even in the current difficult climate.

There are decent whole of market fully qualified advisers out there.

Do you need the income? If income tax is 50% and capital gains tax 28% (or 10% with ER) then if you can earn capital not income obviously you end up much better off. It sounds like you want no risk, no EIS and that new thing starting with S. So perhaps just do a traditional spread between safe investments, perhaps some premium bonds, shares in biggest 15 companies or some of them and property as you say.

I am not an IFA but I agree that spreading risk is wise.

Also IHT is an voluntary tax on the stupid. If you don't want David Cameron to spend what is left of the £1.5m on death then you need to plan not to ensure that will not happen. You may want to make gifts to children for example IF you can afford not to have that capital. You should certanily put any life policies and pensions into trust which costs nothing and keeps them away from 40% IHT.

Look at personal situation, look at the level of risk you wish to take, a mix of investments and investment styles, and asset classes. So use a discretionary manager for some, use your ISA allowances as much as possible slowly over the years. If you use an IFA, check on the ongoing fees and what you get for these costs......ongoing review, home visits, email/phone contact. Ethical advisers in your area on www.ethicalinvestment.org.uk, may look at other things apart from maximising short term profits. Independant financial advisers now are much more exam sitters than sales peolpe, and they sell a service rather than products....so check on the service.