How to invest £1M for income

[Moneyhelping]

Please note this is not a stealth boast. My partner is terminally ill and because he has a good job once he passes I will receive just under £1m in life assurance from his work plus approx £120k in shares and pension contributions and circa £200k from our own life assurance. We have a £400k mortgage which will be cleared leaving me with probably about £900k to invest and a house paid off worth Circa £1M. My own income is circa £35k working part time which I will continue and I don’t plan to go full time because of what my children will be going through.

I would ideally like an income of £2k net a month from the investments allowing also for growth of the capital.

I will arrange for a fund manager to manage the money for me but I would be interested to see how a good portfolio of investments would work and might breakdown.

I appreciate that I’m unbelievably lucky that I’ll be left very comfortable but trust me, I would give anything not to be dealing with this. I have 3 children who I need to get through secondary school and uni and I plan to stay in the family home for the foreseeable future.

Be very careful with pension funds and management charges. My £750 investment from the 70s which was a considerable sum of money to me was invested with Zurich on the advice of a pensions advisor is now worth £250. They have taken huge managemnt charges out of it. They gave me the option of transferring to other funds with the same high charges. I had stopped contributing as I had a company pension fund later in life. These funds should have been 'frozen' so at least they were worth that. My money would have been safer in a building society account. I went to a financial ombudsman (all employed by banks)who said I should have complained within seven years. The finance industry is out of control. They pay themselves high salaries with our savings.

Urkidding

Sorry you experienced this, certainly can't happen now.

The industry is so regulated and transparent with people who want to be ethical.

Commission and A5 sized application forms are a thing of the past.

The barely qualified snake oil salesmen have been replaced with agreed fund based charges, ongoing service agreements and long term client relationships that are mutually beneficial and the advice process fully documented.

Our mantra is would you make this recommendation for your mother. If not, don't recommend it.

Look up The Motley Fool!
Avoid charges like the plague...
Try a mechanical approach such as Dividend Yield Investing. DIY and very simple. Also read the forums on Money Saving Experts. Good luck :-)

Interesting advice - thank you

Time for me to trot out my well-worn advice to be very wary of IFAs. Despite what many will tell you, it's not a properly regulated profession. On my last rant discussion of IFAs we established that they did not have to have even GCSE level maths. Just a persuasive manner. You must be careful about IFAs.

Your level of wealth - unhappily though it may have arrived - would not be passed over by experienced wealth managers. As others have said, it's worth interviewing a few.

I try to aim for a 5% return in a balanced portfolio. I do have some personally owned property in there. I self-invest via a couple of investment platforms. If you are going to take a self-investment route you need to be careful about fund performance and the charges that the investment platform will levy. There is a thread on MSE about which platform to select and why. But that stuff takes hard work even for the financially literate.

Stocks have had a bull run. If you buy into them now, you will be buying into them at their height. Everyone is waiting for the bears. Trade into bonds maybe?

The last comment that I have is that you will be grieving. You are in a process of grief. Don't make any hasty decisions and take your time until you feel fully recovered and able to research and make a sensible financial decision

And hard though it may seem at this point OP, you need to draw up a will.

You need to think about how the funds are invested for the DCs and most importantly when they will get those funds.

I wouldn't want either of my children to get their inheritance at 18. 18 is not a very sensible age.

What have you done so far OP? Dod you see an IFA?

Just an update and a name change. My husband passed away in October this year. We are waiting on the money to come through, I’ve had the first bit but expect the lump sum over the next few weeks. There will be just over £1m to invest. My income is now £45k although I only work 3 days a week and once the mortgage is cleared I will start to invest. It’s a horrible situation to be in but relieved that we can try to move forward without worrying about the financial side.

Bluedogyellowcat I’m sorry for your loss. I hope it provides some comfort that you are financially well provided for at this difficult time.

So so sorry for your loss. My husband and I put a significant portion of our income towards protection policies which of course we hope never to have to use. I hope you get some really good advice. Hugs to you and your children for Christmas. Totally different as I'm an adult but this is my first Xmas without my mum, I'm trying to remember the lovely times we had xx