Millionaires only, saved £100k now what?

[Iamadam]

Hi there,

I’m 24 have saved £100k through 6 years of running my own marketing company. This is nowhere near my actual goals, obviously, but it’s a start.

I now want advice as to what to do with this amount of money? The majority of financial advisors are not necessarily proven millionaires, I would like some advice from real millionaires who have good advice for someone my age to make the most of this amount saved.

Thank you in advance.

 

[MOIC]

Well done on your achievements so far!

1. Continue with what you are doing.

2. Speak with a number of financial advisors and research what you are told.

The important aspect is to diversify and not invest in just one area.

. . . . . but I'm not a millionaire!

 

[glengraving]

all the millionaires I know post on internet forums after midnight on weekdays, they should be here any minute

 

[arnydnxluk]

Your question is far too broad. The answer depends on what your goals are.

There's no point in saving money for the sake of it. You should have certain goals in mind with a purpose for the money. From there you can work out your investment risk appetite, growth expectations, how much more you need to save, etc to reach those goals.

For example are you planning to retire early? If so, what standard of life do you desire during retirement and how much will you need to draw from your investments each year for the rest of your life to achieve that standard?

You'll find tons of helpful information on these subreddits:

https://www.reddit.com/r/ukpersonalfinance
https://www.reddit.com/r/fireuk
https://www.reddit.com/r/investing
https://www.reddit.com/r/UKInvesting/

The meaningful money podcast is good too:

https://meaningfulmoney.tv/mmpodcast/

". . . . . but I'm not a millionaire!"

 

[MOIC]

all the millionaires I know post on internet forums after midnight on weekdays, they should be here any minute

Interesting . . . . .I posted 1 minute after midnight on a weekday . . . . . . .

 

[AllUpHere]

You need a new way to guage success. Being a millionaire doesn't give any indication of ability to make money. Anyone with a good job can have assets worth over a million by the time they are in their 40's. A million isn't a lot of money any more. Anyone with a nice house in an expensive part of the country with no mortgage is already a paper millionaire.

Most of the millionaires I know haven't got a clue about business or making money, and I certainly wouldn't take business advice from them.

Edit. Most with money won't be shouting about it. Quite the opposite. With a 1 year old and a 2 year old, Mrs UpHere and I have been discussing how we will motivate the girls into working hard and doing well for themselves when they will know they will interit millions. The last thing we want to do is bring up spoilt brats with no sense of achievement of their owm.

 

[billybob99]

You like to ask the same question over and over again.

Nothing to see here.

 

[MOIC]

A million isn't a lot of money any more. Anyone with a nice house in an expensive part of the country with no mortgage is already a paper millionaire.

Agree.

Let's hope they don't have to hand it to the government to pay for the old age care!

Most with money won't be shouting about it. Quite the opposite. . . . . . . . The last thing we want to do is bring up spoilt brats with no sense of achievement of their own

Agree 100%!

 

[Annoying Donkey]

You like to ask the same question over and over again.

Nothing to see here.

Is it school holidays then...?

 

[Mark T Jones]

How would you know if someone is a millionaire?

 

[Ian J]

How would you know if someone is a millionaire?

It's normally in their forum signature

 

[Chris Ashdown]

How would you know if someone is a millionaire?

Check out "Factoring Solutions"

 

[Iamadam]

all the millionaires I know post on internet forums after midnight on weekdays, they should be here any minute

Thanks for your insightful reply

 

[Iamadam]

Is it school holidays then...?

I did put my age as 24, you may of missed that.

Not sure about school holidays but you seem to have a lot of time to reply to something you can’t add value to...

 

[fisicx]

Why do you need to invest the money? You are making £35K a year - just go out and spend the money and have fun.

 

[Annoying Donkey]

I did put my age as 24, you may of missed that.

Not sure about school holidays but you seem to have a lot of time to reply to something you can’t add value to...

But your post(s) sounds more like a 14 year old...

You want sensible answers, ask sensible questions...

100k? I'd put it back into your business and scale it up. Systemise so you can pull some spotty teenager in to follow the manual and generate more wealth for you, while you spend your time on forums giving silly answers to silly questions from spotty 14 year olds posing as 24 year olds.

BTW, at age 22 I was bringing in 200k profit per year. That was 1977, so worth 2 million today? You're going to have to do better than 35k pa...

 

[MikeJ]

I did put my age as 24, you may of missed that.

Not sure about school holidays but you seem to have a lot of time to reply to something you can’t add value to...

Perhaps spend the money to learn better English? It's "you may HAVE missed that."

To answer your question, well it depends what you want to do. Low risk/passive income/growth.

I'm boring with money. I'd put it in a pension, assuming you're still paying tax (and especially if you're running a limited company) or drip it into a low cost tracker fund in an ISA.

 

[Iamadam]

But your post(s) sounds more like a 14 year old...

You want sensible answers, ask sensible questions...

100k? I'd put it back into your business and scale it up. Systemise so you can pull some spotty teenager in to follow the manual and generate more wealth for you, while you spend your time on forums giving silly answers to silly questions from spotty 14 year olds posing as 24 year olds.

BTW, at age 22 I was bringing in 200k profit per year. That was 1977, so worth 2 million today? You're going to have to do better than 35k pa... [/QUOTE]

What’s this hate you have built up for this “sporty 14 year old teenager” character you keep referring to?

So you must be a millionaire now then, 20 years on. What did you do after this first business and what was the business?

 

[Iamadam]

Perhaps spend the money to learn better English? It's "you may HAVE missed that."

To answer your question, well it depends what you want to do. Low risk/passive income/growth.

I'm boring with money. I'd put it in a pension, assuming you're still paying tax (and especially if you're running a limited company) or drip it into a low cost tracker fund in an ISA.

I got a B in English, I’m all set on English mate. Couldn’t care less about how I grammatically word my questions on a late night forum.

I think you should focus less on that also, unless your an English teacher?

 

[MikeJ]

I think you should focus less on that also, unless your an English teacher?

"You're".

 

[Paul Norman]

The answer as to how to get above a million quid in net worth is not that simple. It is not one thing.

I could, if you wanted, tell you exactly how I made my money. But it would not work now. It would be different, because it is no longer 1990.

But one thing, I suspect, is still true. It involved a lot of really hard work, and getting to be at the very top of the games I was then involved in.

 

[Iamadam]

"You're".

Good lad

 

[The Byre]

Well, I've had a brilliant morning so far and have solved a problem that has been bugging our company and our future plans for an entire year, so I'll take a few minutes off and answer a question I don't usually get asked - and it's an F'ing important question!

I usually get sort-of asked (in a roundabout way) how did I get to where I am and how can the person doing the asking get there themselves. The OP's question is more important! Earn a decent wage, spend little and save the rest - but what the F do you do with that money once you've got it?

This is a question I had to answer when sold my company - so now I've got a reasonable packet of money, but what do I do with it?

And I don't care if the OP is 14, 24 or 64, or what sum of money he has. I don't care if his English is shite (it is!) It is the question that he poses that is important and interesting.

Here are a few things for our brave OP to ponder -

Right at the top comes the World's economy! Ouch! World total debt is at new highs when looked at as a percentage of GDP (or indeed any other metric). At the same time, Global output, as reflected in measures of purchasing managers’ activity, bounced along with market gyrations, sinking in 2015 and lurching upward in 2017 before falling this year to levels not seen since the depths of the Euro-area crisis.

Governments are torn between incompatible aims. Take central banks. The world’s monetary maestros are eager to leave behind the near-zero interest rates that have prevailed since the financial crisis. But the soft spots into which the global economy keeps stumbling suggest that this desire may be inconsistent with steady, robust growth. Last year the Fed raised its benchmark interest rate by a percentage point, to 2.4%, and reckoned it would rise above 3% by the end of 2019. After its meeting on June 19th, however, Jerome Powell, its chairman, all but told markets to expect rate cuts later this year, “in light of increased uncertainties”. Other central banks such as the ECB have also chosen to beat a hasty retreat.

Governments are likewise conflicted. China’s leaders want to rebalance their economy away from excessive investment and to shrink the role of state-owned firms. They keenly feel the need to depend less on rapid growth in credit. Yet both domestic tranquillity and the ability to project power abroad depend on economic growth. Whenever steps toward economic reform cause too rapid a slowdown, China’s government quickly returns to stimulus. In response to the sudden slowing late last year, it flooded the economy with credit, zapping the global economy with a jolt of energy. New data reveal that China’s total debt-to-GDP ratio, excluding the financial sector, leapt by more than five percentage points in the first quarter of 2019, to nearly 250% of GDP.

Trump is also trying to harangue the Fed into a more accommodative monetary policy by borrowing much more in the run-up to next year’s elections. But he is unwilling to abandon his belligerent approach to trade relations, despite the US government running a $1 trillion p.a. spending deficit.

Now add the continuing uncertainty over Brexit and the apparent desire by both candidates for the office of PM to perform some sort of ritualistic Hari-Kiri over the exit date. If there really is a hard Brexit, the economy could head into a tail-spin of global mistrust of the UK economy. Add to that, the Euro-zone is looking weak right now and whether you like it or not, the Rest-EU accounts for about 45% of UK exports and most (in volume) of the food on your table.

So to our OP, you have two options - equity or business. i.e. you can put the money into something 'safe' that is not volatile in absolute purchasing-power terms, such as gold or property - or you can invest (as suggested above) in your own business.

I would stay well away from paper investments (shares, pension schemes, saving schemes) as these rely on the value of money - and money is just (as Adam Smith points out in his 'Wealth of Nations') merely a matter of trust and belief.

The noises about an imminent global recession are getting louder and louder!

 

[Mark T Jones]

Well, I've had a brilliant morning so far and have solved a problem that has been bugging our company and our future plans for an entire year, so I'll take a few minutes off and answer a question I don't usually get asked - and it's an F'ing important question!

I usually get sort-of asked (in a roundabout way) how did I get to where I am and how can the person doing the asking get there themselves. The OP's question is more important! Earn a decent wage, spend little and save the rest - but what the F do you do with that money once you've got it?

This is a question I had to answer when sold my company - so now I've got a reasonable packet of money, but what do I do with it?

And I don't care if the OP is 14, 24 or 64, or what sum of money he has. I don't care if his English is shite (it is!) It is the question that he poses that is important and interesting.

Here are a few things for our brave OP to ponder -

Right at the top comes the World's economy! Ouch! World total debt is at new highs when looked at as a percentage of GDP (or indeed any other metric). At the same time, Global output, as reflected in measures of purchasing managers’ activity, bounced along with market gyrations, sinking in 2015 and lurching upward in 2017 before falling this year to levels not seen since the depths of the Euro-area crisis.

Governments are torn between incompatible aims. Take central banks. The world’s monetary maestros are eager to leave behind the near-zero interest rates that have prevailed since the financial crisis. But the soft spots into which the global economy keeps stumbling suggest that this desire may be inconsistent with steady, robust growth. Last year the Fed raised its benchmark interest rate by a percentage point, to 2.4%, and reckoned it would rise above 3% by the end of 2019. After its meeting on June 19th, however, Jerome Powell, its chairman, all but told markets to expect rate cuts later this year, “in light of increased uncertainties”. Other central banks such as the ECB have also chosen to beat a hasty retreat.

Governments are likewise conflicted. China’s leaders want to rebalance their economy away from excessive investment and to shrink the role of state-owned firms. They keenly feel the need to depend less on rapid growth in credit. Yet both domestic tranquillity and the ability to project power abroad depend on economic growth. Whenever steps toward economic reform cause too rapid a slowdown, China’s government quickly returns to stimulus. In response to the sudden slowing late last year, it flooded the economy with credit, zapping the global economy with a jolt of energy. New data reveal that China’s total debt-to-GDP ratio, excluding the financial sector, leapt by more than five percentage points in the first quarter of 2019, to nearly 250% of GDP.

Trump is also trying to harangue the Fed into a more accommodative monetary policy by borrowing much more in the run-up to next year’s elections. But he is unwilling to abandon his belligerent approach to trade relations, despite the US government running a $1 trillion p.a. spending deficit.

Now add the continuing uncertainty over Brexit and the apparent desire by both candidates for the office of PM to perform some sort of ritualistic Hari-Kiri over the exit date. If there really is a hard Brexit, the economy could head into a tail-spin of global mistrust of the UK economy. Add to that, the Euro-zone is looking weak right now and whether you like it or not, the Rest-EU accounts for about 45% of UK exports and most (in volume) of the food on your table.

So to our OP, you have two options - equity or business. i.e. you can put the money into something 'safe' that is not volatile in absolute purchasing-power terms, such as gold or property - or you can invest (as suggested above) in your own business.

I would stay well away from paper investments (shares, pension schemes, saving schemes) as these rely on the value of money - and money is just (as Adam Smith points out in his 'Wealth of Nations') merely a matter of trust and belief.

The noises about an imminent global recession are getting louder and louder!

I'm pretty bored of this thread now - but one of the pub debates I used to enjoy starting revolved around the notion that the global economy is basically a pyramid scam.

 

[dan19900]

Invest into your business, where are your customers coming from? Spend more to get more customers and hire more employees.

My first business was ecommerce and wholesale, importing from China so I just kept getting new products and spending more on advertising. Probably got to over a 'million net worth' before I even had more than 10k in my personal bank.

 

[Ian J]

Check out "Factoring Solutions"

I wanted that kept a secret Chris to stop all the begging letters from the more impecunious UKBF members

 

[Mr D]

I got a B in English, I’m all set on English mate. Couldn’t care less about how I grammatically word my questions on a late night forum.

I think you should focus less on that also, unless your an English teacher?

Yes, have noticed the grade inflation in GCSE. I got a C in English GCSE over 3 decades ago, spelling and punctuation were not part of the coursework.

As for what to do with £100k - perhaps what makes you happy?
Think of what you enjoy doing. Make money from that.

 

[Gordon - Commercial Finance]

I wanted that kept a secret Chris to stop all the begging letters from the more impecunious UKBF members

And others trying to get you to finance a new car.....

 

[Gordon - Commercial Finance]

You like to ask the same question over and over again.

Nothing to see here.

Everyone has given suggestions as the investment pot has grown and grown...are you likely to follow any of these recommendations or are we wasting our time (again)?

 

[MBE2017]

Gold is starting to gain again in the last couple of months, which happens when there is market uncertainty. Could be a new gold rush on the way.

 

[Iamadam]

Everyone has given suggestions as the investment pot has grown and grown...are you likely to follow any of these recommendations or are we wasting our time (again)?

Your time is probably best spent else where mate, enjoy the rest of your day.

 

[Iamadam]

I'm pretty bored of this thread now - but one of the pub debates I used to enjoy starting revolved around the notion that the global economy is basically a pyramid scam.

Not too sure why your involved in this threat anyway, but enjoy the rest of your day.

 

[Iamadam]

Invest into your business, where are your customers coming from? Spend more to get more customers and hire more employees.

My first business was ecommerce and wholesale, importing from China so I just kept getting new products and spending more on advertising. Probably got to over a 'million net worth' before I even had more than 10k in my personal bank.

Thanks for this Dan, I have re-invested a lot into my current business and new company. This is just some saved cash I wanted to get first job with.

Thanks mate

 

[Mark T Jones]

Not too sure why your involved in this threat anyway, but enjoy the rest of your day.

*You're*

 

[JEREMY HAWKE]

*You're*

I was going to offer my 30 years of experience in business to this thread but as I have served a very similar term in business to @Mark T Jones . My breakdown would just not be adequate for the OP

 

[WaveJumper]

This sort of questions always make me think of this little story, maybe it will lighten the mood on this thread.

There was once a businessman who was sitting by the beach in a small Brazilian village.
As he sat, he saw a Brazilian fisherman rowing a small boat towards the shore having caught quite few big fish. The businessman was impressed and asked the fisherman, “How long does it take you to catch so many fish?”

The fisherman replied, “Oh, just a short while.”

“Then why don’t you stay longer at sea and catch even more?” The businessman was astonished.
“This is enough to feed my whole family,” the fisherman said. The businessman then asked, “So, what do you do for the rest of the day?”

The fisherman replied, “Well, I usually wake up early in the morning, go out to sea and catch a few fish, then go back and play with my kids. In the afternoon, I take a nap with my wife, and evening comes, I join my buddies in the village for a drink — we play guitar, sing and dance throughout the night.”

The businessman offered a suggestion to the fisherman.
“I am a PhD in business management. I could help you to become a more successful person. From now on, you should spend more time at sea and try to catch as many fish as possible. When you have saved enough money, you could buy a bigger boat and catch even more fish. Soon you will be able to afford to buy more boats, set up your own company, your own production plant for canned food and distribution network. By then, you will have moved out of this village and to Sao Paulo, where you can set up HQ to manage your other branches.”

The fisherman continues, “And after that?”
The businessman laughs heartily, “After that, you can live like a king in your own house, and when the time is right, you can go public and float your shares in the Stock Exchange, and you will be rich.”

The fisherman asks, “And after that?”
The businessman says, “After that, you can finally retire, you can move to a house by the fishing village, wake up early in the morning, catch a few fish, then return home to play with kids, have a nice afternoon nap with your wife, and when evening comes, you can join your buddies for a drink, play the guitar, sing and dance throughout the night!”
The fisherman was puzzled, “Isn’t that what I am doing now?”

Well it makes me smile

 

[Iamadam]

This sort of questions always make me think of this little story, maybe it will lighten the mood on this thread.

There was once a businessman who was sitting by the beach in a small Brazilian village.
As he sat, he saw a Brazilian fisherman rowing a small boat towards the shore having caught quite few big fish. The businessman was impressed and asked the fisherman, “How long does it take you to catch so many fish?”

The fisherman replied, “Oh, just a short while.”

“Then why don’t you stay longer at sea and catch even more?” The businessman was astonished.
“This is enough to feed my whole family,” the fisherman said. The businessman then asked, “So, what do you do for the rest of the day?”

The fisherman replied, “Well, I usually wake up early in the morning, go out to sea and catch a few fish, then go back and play with my kids. In the afternoon, I take a nap with my wife, and evening comes, I join my buddies in the village for a drink — we play guitar, sing and dance throughout the night.”

The businessman offered a suggestion to the fisherman.
“I am a PhD in business management. I could help you to become a more successful person. From now on, you should spend more time at sea and try to catch as many fish as possible. When you have saved enough money, you could buy a bigger boat and catch even more fish. Soon you will be able to afford to buy more boats, set up your own company, your own production plant for canned food and distribution network. By then, you will have moved out of this village and to Sao Paulo, where you can set up HQ to manage your other branches.”

The fisherman continues, “And after that?”
The businessman laughs heartily, “After that, you can live like a king in your own house, and when the time is right, you can go public and float your shares in the Stock Exchange, and you will be rich.”

The fisherman asks, “And after that?”
The businessman says, “After that, you can finally retire, you can move to a house by the fishing village, wake up early in the morning, catch a few fish, then return home to play with kids, have a nice afternoon nap with your wife, and when evening comes, you can join your buddies for a drink, play the guitar, sing and dance throughout the night!”
The fisherman was puzzled, “Isn’t that what I am doing now?”

Well it makes me smile

Thanks for this, I do like the moral and lessons behind this story. I do not believe monetary goals will make me happy, I am just happy working and creating businesses and the goals are motivators, not happiness indicators. I work long hours now and create businesses to eventually help pay my families mortgages off and create financial comfort in there lives. I do not mind working forever in business as I love what I do.

 

[Iamadam]

I was going to offer my 30 years of experience in business to this thread but as I have served a very similar term in business to @Mark T Jones . My breakdown would just not be adequate for the OP

Do not mean to offend or be little anyone I am just looking for millionaires advice as anything less than that I can find in my own circle. It seems a lot of people have taken this to heart, just being honest though. 30+ years of experience in business is something I respect a lot, wish you all the success.

 

[WaveJumper]

Yes joking aside you have to do what makes you happy, personally I think anyone who has a job or lucky enough to have their own business and are happy and really enjoy it, they are very lucky in my humble opinion.

Keep at it sounds like you are doing well, and in answer to your original question I would be setting up a pension fund and using that fund to invest in commercial property, best of luck for the future

 

[Gordon - Commercial Finance]

Your time is probably best spent else where mate, enjoy the rest of your day.

Na this is far too entertaining.