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What would you do if you won a million?

Money - Seeing the future

What would you do if you won a million? According to the UK national lottery since the lottery began, it has created over 3,000 new millionaires. It would seem easy to know what we would buy. A new house and car perhaps?

Would it be enough to give up your job and retire on? A million was a fortune when I was young, but you seem to need a billion now to be rich. Many family homes in some parts of the UK cost a million these days. In the town I live in, a home costing half a million isn’t usual and this is a deprived area, according to the people who made it deprived…

The Bank of England constantly increases the money supply, effectively devaluing money. It has been worse in the past few years, with it’s 375 billion of quantitative easing (printing money). they say they are trying to keep inflation down, but we see commodities like energy (gas and electricity), water bills and petrol keep going up. Inflation has been up to 5%, effectively devaluing money by 5% a year. You would need to invest your money well to retire on even a modest inflation proof income. There would be no point in having a savings account at a bank paying less than inflation.

I think with a million pounds, I would invest it. It would be reasonable to spend a little of the money and invest the rest. What would you invest it in though? I think property would be a wise investment. That could simply be a house to live in or a property for a business. It could be a house to live in and a property to rent out for a small income. That would take care of a couple of hundred thousand for me. I don’t need a mansion. It would take too many cleaners to keep it nice!

I would also invest on the stock market. That would be difficult. Many blue chip companies are now safe harbours and their share price is too high. I would definitely think carefully about investing in shares. I do have some experience investing in shares. Bonds can be a safe bet, but interest rates are very low and bond prices high. I think I would buy some corporate bonds, just so I was diversifying. I am a fan of social lending  and so would probably put at least 50,000 into peer-to-peer lending like Zopa and Funding Circle.

With your million being devalued by up to a 1,000 pounds a week, it wouldn’t be easy finding suitable things to invest in. At one time, government and local government bonds were a good bet, but now you can’t trust governments. It would be easier and less risky, if you had a billion to invest, then you have some power too.

I would spend a little of the money rather than invest it all. I would definitely have a new camera. I’m not sure about a new car, I like the one I have. I could have it customised! Many people tend to feel a sense of excitement when they go shopping and gain some sort sense of prestige from it. I don’t much like shopping and so perhaps that would protect me from excessive spending! I could spend a fortune shopping on the internet though. I would like a really expensive camera to take pictures for my blogs. I would probably have a new laptop too. My biggest expenditure would be on my garden I think, I would have it landscaped and made easy for a gardener to maintain. No,  I still wouldn’t do it! So, I would be happy spending a few thousand and investing the rest. What sort of income could I hope for after I had taken inflation into account? Assuming I had 800,000 invested. I would have  more than enough from investments to keep me happy.

What do you think? Would you consider yourself rich if you were a millionaire? What would you spend money on? Would you invest for the future or spend, spend, spend? There is a Euro millions rollover draw on Friday and another Lotto draw on Saturday, I suppose someone has to win. Why not me?

One Response

  1. Pingback: » Soon be Christmas A Zillion Ideas…

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