What would you do with a R10Mil+ windfall?

koeksGHT said:
My medium risk profile gets 15-18%
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that's the key bit...there are minimal guarantees with an investment (some of our investment products do offer guarantees at the expense of fees \ lock-in periods). Markets go kerplumpf and investment gains are wiped off the slate - that's a very different proposition from bank interest rates.
 
Neoprod said:
that's the key bit...there are minimal guarantees with an investment (some of our investment products do offer guarantees at the expense of fees \ lock-in periods). Markets go kerplumpf and investment gains are wiped off the slate - that's a very different proposition from bank interest rates.
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Like Absa dipped into people's money markets when the African Bank wobble happened?

But anyways, one shouldn't be silly in put your eggs all in one basket, you need to spread it out so that if one market gets hit you are only partially affected.

This is the returns from one of my investments for the last 5 years which averages just over 15% a year.

6 months - 12.9%
1 year - 19.9%
3 years - 92.9%
5 years - 204.1%

You keep doing what you do, and I keep doing what I do.
 
Settle debt

Invest in property overseas that can provide annuity income in hard currency.
 
whatwhat said:
Like Absa dipped into people's money markets when the African Bank wobble happened?
But anyways, one shouldn't be silly in put your eggs all in one basket, you need to spread it out so that if one market gets hit you are only partially affected.

This is the returns from one of my investments for the last 5 years which averages just over 15% a year.

6 months - 12.9%
1 year - 19.9%
3 years - 92.9%
5 years - 204.1%

You keep doing what you do, and I keep doing what I do.
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Only money market funds were affected by exposure to African Bank.

In summary, investments do not guarantee anything - your numbers up there would look slightly different if your period included the last major crash.
 
whatwhat said:
Like Absa dipped into people's money markets when the African Bank wobble happened?
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Money markets are basically composed of short term debt instruments. If the issuer of the debt (ABIL in this case) defaults, then the value of the paper is reduced. Absa didn't dip into people's money market funds. The underlying instruments in the fund's value was reduced by the default, hence the value of the fund dropped.
 
That 10 mil will attract hundreds of thousands of estate duty upon their demise . I would include this in your planning.
 
gimpex said:
That 10 mil will attract hundreds of thousands of estate duty upon their demise . I would include this in your planning.
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There is something I left out in the original premise. My father sold the property to a trust he established decades ago. Technically speaking the trust only owes him like a million.
 
Chevron said:
Something like this, but include buying a few properties for rental income and starting a business.
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Why would you start a new business when you retire?

And would the rental income from a couple of different properties be worth more than the high value property he's already got (depending what you do with it, obviously)?
 
Garson007 said:
Basic premise: My parents are after a long process going to sell a high value property. They're both semi-retired, and not dependent on the windfall in any way - but it would push up the liquidity of their net worth astronomically. I'm interested in knowing what you as a random forumite would do with that kind of money, given the premise (or hell, even under a different context).
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Since they're your parents I suspect they are well into old age. 50 odd +

They can downscale and buy a cheaper 2 bedroom house. Settle all their debt and live out the money by traveling the world and enjoying life. They have worked hard all their life and it's now time to reap the rewards. I will live out each and every cent I have given the opportunity. My kids have enough policies and things to give them a good start. They will inherit fark all but the house and land I have. Money wise I'll be broke as fark :D
 
OrbitalDawn said:
And would the rental income from a couple of different properties be worth more than the high value property he's already got (depending what you do with it, obviously)?
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Yes. It's a farm. It's a bad rental property. Barely breaks even. The idea is likely to be the buying of other rental properties.
 
Garson007 said:
Yes. It's a farm. It's a bad rental property. Barely breaks even. The idea is likely to be the buying of other rental properties.
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If you do , get more cheaper properties rather than fewer more upmarket ones. A lot easier to rent out and higher returns. I don't find any difference in the calibre of tenants - as in both can default. But you can take precautions and / or insurance to mitigate this risk.
 
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