February 10th, 2012
08:49 PM GMT
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?
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