Well tonight is mad Friday, when there is a draw for a Europe wide lottery. The top whack is £72 million.
Not as much as the American single ticket holder won last week but still a fair piece of cash!! I like everybody else who has a flutter plays the fantasy game of "What would I buy if I won it!" The usual suspects come out, a house, a car,a holiday and other normal things like those. Spend! spend! spend ! has been the downfall of many winners, in the past. So here is my master plan...............
I would put £65 million well away, off shore. Then I would go to the four local banks and enjoy the staff grovel as I put £1.5 million in each of them. The local credit union has been great to me and I would deposit £1 million with them. They can then help others with it.That would get me four nice credit cards, to kick off with.The prize money is free of tax,but any earnings are taxed. I would ensure that they were paid in order that no interest was ever charged. The cards could buy cloths and stuff.
I would not spend any of the investment money. Instead, I would take out bank loans,for bigger buys, using the investments as security. Loans are extremely cheap these days. In this way all of the big money is earning and the interest should cover the loan payments. This is where most people go wrong. They spend their own money!!
I would then buy a hotel,with a bit of land to build a house on. I would then have food,booze and staff to handle cooking,cleaning,washing and stuff. This would be a core business. The house would have three floors underground and two on top! The bottom floor would be the pool and games area. On top of that would be some guest rooms and a sitting room, with all the goodies in it. Then,the basement of the house,would have a couple of offices and a reception area.
The ground floor would have a garage and laundry room, complete with fridge/freezers and storage. The upper floor would have a master bedroom and another couple of rooms, plus a sauna and whirlpool bath.
On the flat roof there would be plants and flowers and the whole roof area would be a sun terrace, with a good view all the way round.. I would have some kind of lift installed,too. The cars.............
A nice BMW M5 and a Bentley would be a start and a Winniebaggo motor home, should I wish to wander. So I have a business, a home and cars, all via bank loans and investment interest should cover a fair chunk of the payments. I would start a taxi business to give folks a go at self employment for themselves. All you need are radios and a home base. The mast could be mounted on the hotel roof. I would get a fee per radio hired out. Most radio firms will give you them as you need them so there is only the initial outlay needed. Again, bank loans.
Then the fun bit.....I would buy up flats to be rented out. People do this the wrong way. They spend huge amounts of money fitting new kitchens,bathrooms and so on before anybody moves in. Tax wise this is silly.
After a flat is a year old,as it were, you may claim for replacing cookers etc. So you get the costs against the taxman!! To do all the stuff before renting out, you get nothing against the taxman.The rental income should cover the loan repayments for the flats and the tax allowances will ensure that you pay no tax at all while the flats increase,hopefully, in value.!! When you want to sell them, you would be stuck with Capital Gains Tax.
You are allowed to "gift" them to a limited company which in turn will pay you for them. In this case, no CGT is levied.!! You can only do this once. What else......................nothing really. I would have a hotel, a property firm,a taxi firm and still have all of the original winnings,gathering interest off shore.
All that is now required is to WIN.!!!
Not as much as the American single ticket holder won last week but still a fair piece of cash!! I like everybody else who has a flutter plays the fantasy game of "What would I buy if I won it!" The usual suspects come out, a house, a car,a holiday and other normal things like those. Spend! spend! spend ! has been the downfall of many winners, in the past. So here is my master plan...............
I would put £65 million well away, off shore. Then I would go to the four local banks and enjoy the staff grovel as I put £1.5 million in each of them. The local credit union has been great to me and I would deposit £1 million with them. They can then help others with it.That would get me four nice credit cards, to kick off with.The prize money is free of tax,but any earnings are taxed. I would ensure that they were paid in order that no interest was ever charged. The cards could buy cloths and stuff.
I would not spend any of the investment money. Instead, I would take out bank loans,for bigger buys, using the investments as security. Loans are extremely cheap these days. In this way all of the big money is earning and the interest should cover the loan payments. This is where most people go wrong. They spend their own money!!
I would then buy a hotel,with a bit of land to build a house on. I would then have food,booze and staff to handle cooking,cleaning,washing and stuff. This would be a core business. The house would have three floors underground and two on top! The bottom floor would be the pool and games area. On top of that would be some guest rooms and a sitting room, with all the goodies in it. Then,the basement of the house,would have a couple of offices and a reception area.
The ground floor would have a garage and laundry room, complete with fridge/freezers and storage. The upper floor would have a master bedroom and another couple of rooms, plus a sauna and whirlpool bath.
On the flat roof there would be plants and flowers and the whole roof area would be a sun terrace, with a good view all the way round.. I would have some kind of lift installed,too. The cars.............
A nice BMW M5 and a Bentley would be a start and a Winniebaggo motor home, should I wish to wander. So I have a business, a home and cars, all via bank loans and investment interest should cover a fair chunk of the payments. I would start a taxi business to give folks a go at self employment for themselves. All you need are radios and a home base. The mast could be mounted on the hotel roof. I would get a fee per radio hired out. Most radio firms will give you them as you need them so there is only the initial outlay needed. Again, bank loans.
Then the fun bit.....I would buy up flats to be rented out. People do this the wrong way. They spend huge amounts of money fitting new kitchens,bathrooms and so on before anybody moves in. Tax wise this is silly.
After a flat is a year old,as it were, you may claim for replacing cookers etc. So you get the costs against the taxman!! To do all the stuff before renting out, you get nothing against the taxman.The rental income should cover the loan repayments for the flats and the tax allowances will ensure that you pay no tax at all while the flats increase,hopefully, in value.!! When you want to sell them, you would be stuck with Capital Gains Tax.
You are allowed to "gift" them to a limited company which in turn will pay you for them. In this case, no CGT is levied.!! You can only do this once. What else......................nothing really. I would have a hotel, a property firm,a taxi firm and still have all of the original winnings,gathering interest off shore.
All that is now required is to WIN.!!!
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