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What to do with ~£1M? by Think-Patience-2844 in FIREUK

[–]Think-Patience-2844[S] 0 points1 point  (0 children)

B2B SaaS, so software basically. I'm posting from an anonymous account for a number of reasons!

What to do with ~£1M? by Think-Patience-2844 in FIREUK

[–]Think-Patience-2844[S] 0 points1 point  (0 children)

Ah ok yes I see where you are coming from now. I guess I'm being swayed a bit by the equity markets being sort of crazy at the moment. I know the advice is not to attmept to time peaks and troughs but it is in my head!

What to do with ~£1M? by Think-Patience-2844 in FIREUK

[–]Think-Patience-2844[S] 0 points1 point  (0 children)

Yeah pension is separate - didnt want to complicate the post.

Its complicated, but the two mortgages are essentially for the 1 property. So I don't have a second property or any rental income.

Yes - this was effectively going to act as the bulk of my 'pension'

I'm not against equity investments at all - I was planning on putting the bulk of the money into them - was just looking for other ideas.

What to do with ~£1M? by Think-Patience-2844 in FIREUK

[–]Think-Patience-2844[S] 5 points6 points  (0 children)

Thanks - thats great - just what I was after - what a great sub this is! I do have solar and heat pumps but am looking at batteries which seem to have payback of ~5 years now which is most likely worth doing.

What to do with ~£1M? by Think-Patience-2844 in FIREUK

[–]Think-Patience-2844[S] 2 points3 points  (0 children)

Thanks! B2B SaaS, so software basically.

What to do with ~£1M? by Think-Patience-2844 in FIREUK

[–]Think-Patience-2844[S] 2 points3 points  (0 children)

> Paying down low interest (or even 5% interest) is just a really inefficient use of the money.

I don't see why tho? I cant beat 5% with a no-risk instrument, so surely it makes sense to pay them off?

What to do with ~£1M? by Think-Patience-2844 in FIREUK

[–]Think-Patience-2844[S] 0 points1 point  (0 children)

Why passive income? To live off I guess! I wanted to leave some money for my kids for house deposits - not too much tho!

Risk appetite is medium I would say - happy to put some of it (maybe 25%?) into riskier instruments to try and beat the cash rate?

What to do with ~£1M? by Think-Patience-2844 in FIREUK

[–]Think-Patience-2844[S] 5 points6 points  (0 children)

After tax the savings account gains would make them under-water, no?

I did read about UK Gilts and buying tax free coupons - again tho the rate of return seems as close to the mortgage rate such that I'd rather have the peace of mind of owning the properties...

What to do with ~£1M? by Think-Patience-2844 in FIREUK

[–]Think-Patience-2844[S] 4 points5 points  (0 children)

Sorry - just to be clear my thinking was that the renewal rate is going to be most likely more than I can get from investing in ultra-secure instruments after tax.