What would you do with a R10Mil+ windfall?

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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If I were your parents, I'd go on a holiday that I've always wanted to go on, and then invest the rest. If you don't need it, don't use it. The advantage is that they can use that money to provide for their children (ie you) and grand children.
 
Resign, pay off my bond, buy 2-3 other properties and live off the rental income.
 
Mila said:
I work with a charity that has been given notice at their current property. I would donate them a new one.
And the rest I would save in a different country.
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Yes, I heard about that. After 14 years. Shame, well I can only assume Dr B must be tired of all that. Can't blame him.
I got my first kitty there.
 
I actually hate this kind of thread. I get all excited about what I am going to do with the money, then remember it didn't happen.
 
D3nz said:
Invest half and share the remainder with close family members. Charity begins at home...
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This is terrible advice, depending on how you share the money.

The absolute best route for this kind of transfer of funds is to set up a bunch of trusts that invest the amounts you are willing to share then pay out on schedule to members of the trust over time for very specific, preplanned expenses.

Say for instance you have a niece who is in her teens, there are some very predictable expenses she'll have over the next ten years, university/wedding/first home ...you can name those things as viable reasons for payout.


NOBODY GETS CASH.


Several fools with multi-million windfalls makes for utter fscken carnage.

I have seen this happen with a family fortune that was rumoured to be near a hundred million.

Several cases of addiction running rampant, a fatal car accident (driver schitfaced for days prior to accident), vicious (and expensive because lawyers) infighting for years, and rumours that a murder was plotted at one stage.

Do not give people large sums of money, it will screw their lives up very fast.

@OP: I think the most prudent course of action is to split the money into layers of financial security.

So - diversification between fixed assets (property) and investments.

At 10 bar ZAR (this isn't a lot of money in the great scheme of things mind you...) you are just about into the segment where you become capable of ensuring financial security with little chance of losing that position (as long as your lifestyle doesn't change dramatically.)

This should absolutely be the goal here.

So basically: medium risk, long term (10 year or more) investments with a safety net of property should the doodoo hit the fan and you need cash. Keep your lifestyle the same and you'll have the most valuable thing a person could wish for - not to have to worry about money ever again.

I'm fairly vague on the details of this stuff but I understand the broader strokes, there are some people on the forum who can get into the nitty gritty but IMO that's best left to lawyers anyway* since your goal is to worry about money as little as possible.

*Lawyers, not financial advisers. Wealth managers and the like are incentivised to take a percentage of your money over time. You settle a lawyers invoice within 30 days. Good deal.
 
SlinkyMike said:
Do not give idiots large sums of money, it will screw their lives up very fast.
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FIFY :)

@Denz, I'm responsible - promise. The biggest risk I'd be is getting ripped off for second-hand toilet paper or condoms from a Takealot unboxed deal.

...even then I'd probably still use them, I'm thrifty like that :)
 
Travel Travel and Travel some more. That is what I would do! Go to Fiji and all those awesome places. :D
 
bokdrol said:
I actually hate this kind of thread. I get all excited about what I am going to do with the money, then remember it didn't happen.
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lol same. Like when I play Lotto and think what I'm going to do with the money xD

Not that I play often at all, but when I do.
 
Garson007 said:
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.
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Has your parents factored in the capital gains tax for a trust?
 
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