February 10th, 2012
08:49 PM GMT
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London (CNN) – The news this week that a young couple in northern England won £45 million ($70 million) on the eurolottery set me thinking. And thinking. In fact anyone who heard of the story has surely spent more than a few moments thinking - what would I do with that money?

To start with, I worked out what I would get if I just left it on deposit in the bank. Offshore, of course. Assuming I tied it up for five years. Since it is a sterling win, I could get around 2% on deposit which would give me an income of £900,000 (£450,000 after tax at 50%) Not shabby, but probably not enough!!

So let’s juice it up…and put across the market. A bit of Large Cap. A few Emerging Markets. A dose of Bonds and Gilts…and we should be able to get, oh around, 7% on a half decent year. That gives me an income of at least £3,000,000 (before tax!). NOW we’re talking.

As I talked about this with colleagues and friends, we all came up with different strategies.

Some would plough the interest income into property, others would put a lot more into risky assets, and there are those who would just put the whole lot into safe government bonds adding a chunk of gold for bad times.

Some are obsessed with the thought of “riches beyond the dreams of avarice” while others are just quietly thinking “if only.”

At the back of my mind was the thought, how would I make sure this money lasted for me and my heirs! And at the same time made some capital to keep the real value up.

I have so many strategies for what I would do with the money. Now I only have to win it, and I guess I stand a better chance, if I actually buy a ticket, rather than just dreaming about winning.

So …here is your check, dear reader. £45,000,000 or $70,000,000. It is going into your bank account tomorrow. Waste no time. What are you going to do with it?



soundoff (13 Responses)
  1. Theresa

    I'd buy a ticket, move to London, Eng., and hire you to manage the whole shebang.

    February 11, 2012 at 12:12 am |
  2. Kari Raade

    Dear Richard,

    I would propose the following:

    First, hire a team of professional advisors: having at least a tax lawyer and an accoutant. Next, diversify into roughly 25% gold or precious metals, 25% equities, 25% real-estate, 25% corporate loans (not government bonds) + some paper money for expenses. Protected from inflation, with a diversified portfolio, there's plenty of time to divise a more detailed financial plan with risk analysis (for country, currency and counterparty risk). Heirs can be dealt with a trust handing out a monthly allowance.

    Greetings from Finland!

    Yours sincerely,
    Kari Raade

    February 11, 2012 at 7:30 am |
  3. ana

    You are completely right in the matter of fact Sir Richard...There are some situations in the life where neither double more amount of money doesn´t be of value at all...but money doesn´t worthless...

    February 11, 2012 at 11:05 am |
  4. jakson

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    February 13, 2012 at 2:34 am |
  5. Ward William

    I would not invest it in any way at all. I would just leave it in the safest bank possible. A fool and his money are soon parted. This is not the economy for tinkering with investments and all money managers want is to get their grubby hands on some of it. At 45 million pounds, I and the next few few generations of my family can all live well and after that I really don't care, managing it will e somebody else's problem.

    "(£450,000 after tax at 50%) Not shabby, but probably not enough!!" That's the greed speaking.

    February 14, 2012 at 9:12 am |
  6. John

    I'd run through it in three years, like most of the winners. Atfter that, I would say " I spent most of it on travel, fine dining, fast cars and hot women... the rest of it I wasted!"

    February 14, 2012 at 6:36 pm |
  7. Craig

    How about taking half right off the top and sticking it into a retirement account earning a low risk modest interest and then forget about the money pretending it never exhisted... take the other half of the money and figure out how to make it last your entire lifetime. Pay off debt, purchase a home in full rather than finance and create a budget you can live with as if that's all the money you had. With that much money, you wouldn't need to rely on investments and interest. You would have enough to live the rest of your entire life on a fraction of the whole amount you've just won. The problem is, most people when they win money, they blow it on crap and forget about the long term. They finance so they can own more and then when it's all gone, they have nothing left to support what they've already got. Before you know it, they are bankrupt and left scratching thier heads how it happened. At least if you own everything and you don't have a single piece of debt, you'll never be left trying to figure out where you can sleep the next night.

    February 15, 2012 at 11:35 am |
  8. Neil

    I would do the scrooge Mcduck technique. I would get a huge vault with gold coins and swim in it.

    February 15, 2012 at 11:49 am |
  9. McKenzie

    I would buy the US Presidency!

    February 15, 2012 at 12:12 pm |
  10. tusu

    I would donate 60 million to charity, and then spend 1m buying a farm, for cash. I would donate 2m to my neices and nephews (equally divided), The rest (7m) I would put in secure, low yield accounts that would generate a modest income for me for years – and i'd will that it to my hubby.

    February 15, 2012 at 1:01 pm |
  11. Tasera

    Stick it into an annuity and live off of the interest for the rest of my life.

    February 16, 2012 at 9:43 pm |
  12. cocolino

    First 50% would go to drinking, and the other 50% of course, to women for me plus a sybian for wife. Indisputedly this is the wisest investment, the only one that can bring happiness. If you need a sidekick partner look me up. :-)

    February 17, 2012 at 8:55 am |
  13. win the lottery

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    April 4, 2012 at 10:56 am |

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