Luan Pra bang

A good IFA may pick a fund that gets you 10% a bad one will open a new fund every year and charge you 4% each time to put your money in it jsut so he gets rich faster.

TopBanana

With 4m you'd have access to a decent IFA / private banker. Just sticking it in the bank and living off the interest would be crazy. Even if you didn't spend any, the money would shrink in real terms every year

Tiggs

lol.....an IFA that charges 4% on £4m has a moron for a client!

2000TLondon

With 4 million in liquid assests, you would be a very nice prize for a private bank to land. You wouldn't be talking about retail bank rates or products. You could easily achieve 10 - 15%, and more than likely more, by depositing it in the right place. You're no longer talking to IFA's, you're now talking to fund managers.

Although these days 4 million pounds isn't a staggeringly HUGE amount, it is a staggeringly huge amount when liquid.

So after your fees and taxes I'd expect at least a third of a million to play with each year.

Which actually isn't much, six grand a week......

You couldn't even rent a decent yacht on the Riviera for that.

You'll be paying almost a grand a week on the Ferrari, plus a few hundred a week for insurance. Your mortgage will be two grand a week. A weekend in London at the Mandarin Oriental for two nights plus show and shopping will be two grand a month. A dozen Saville Row suits at between three and eight grand a pop, hand made shoes from Jermyn St. Days at Ascot. Champagne at Polo. Centre court tickets. Car for your Mum. Car for the wife. Maid. Gardener. Driver. Business manager. Accountant. Hangers On from Scoobynet. It all mounts up!!! Flying lessons. The odd trip to New York, seven thousand pounds first class......... Vegas. Sydney. St Barts. Virgin Islands. The lifestyle of even a relatively successful banker will eat six grand a week very quickly!!!!

Then you'll realise to maintain this lifestyle you need more of a return on the principle and chuck it all in the Nikkei, then..........

^OPM^

Well with my millions I enjoy driving an old mondeo and watching my bank balance grow day by day-then again they call me Ebenezer and legend has it that i can peel an orange in my pocket without the smell escaping im that tight

Diablo

Not quite, you just need to keep the money and income generated from it off shore, and spend it off shore.

If I have 4million quid cash in the bank the UK would not be my main place of residence.

OllyK

As you've put, the UK would not be you main place of residence, so to all intents and purposes you've moved out of the UK, as has the money.

Wurzel

iTrader: (1)

Saw an advert on tv yesterday about a squirrel collecting red cubes, the ad was from Abbey National who claim to pay you tax free interest on your savings. No idea if this helps any though as I am sure the gov will have some way to get its mits on your hard earned

Diablo

Thats my prference Olly.

Many people have money offshore , earn income from it off shore, spend it off shore but remain resident in the uk.

If you kept the interest earned off shore you would not pay UK tax on it.

You could of course spend the capital sum in the uk, if that was from taxed earnings of say a lottery win.

There are very clever ways to balance payments from capital against interest earned to enable you to achieve a (more or less) tax free income, but only for a finite period as the original capital sum is eroded.

2000TLondon

That's the beauty of having lots of money, you can afford the best accountants. A guy I know of had a demand for a couple of million of tax to be paid on capital gains. With the right accountant, he only paid fifty odd grand, as the legend has it......

hades

Yep, that's through a savings mini ISA. You can get put in up to £3k each financial year and get tax free savings. So after only 1333 years, all £4m could be earning interest tax free!