Going From Nothing To a Millionaire

[DjH4yZ]

ok in a nutshell heres is my situation, i wont go into the whys but i need some advice

i have a friend who is kindly giving me 1.2 million pounds (yes she is very generous)

but here is my situation, i have very very bad credit, a basic bank account and i was wondering how i could deposit this 1.2 million? do i open an isa? do i deposit in one go by cheque into my account? im black listed by the way and owe 20k to debts, thts why i only have a basic bank account, basically i need to deposit this money so i can get myself out of debt and start moving forward.

What do you guys recommend?

[JoshuaHeckathorn]

Wow...what a generous friend!

Why not just deposit into basic savings accounts, pay off your debts, and then invest the rest? You don't need good credit for that. And for that amount of money, it may be wise to seek the advice of a trusted investment adviser asap. We don't have ISAs here in the US, so I'm sorry but I don't have any personal experience with them. They sound great though based upon what I've read!

[disneysteve]

Obviously, your 20K in debt is irrelevant once you receive the 1.2M. That will still leave you with over 1.1M.

I don't know how things work where you are (England?) so I can't give specific advice. If you were in the US, I'd split the money up between enough accounts to keep it insured by FDIC. Then I'd feed it into a diversified investment portfolio depending on your age, goals, risk tolerance, etc.

[bjl584]

Originally Posted by DjH4yZ

ok in a nutshell heres is my situation, i wont go into the whys but i need some advice

i have a friend who is kindly giving me 1.2 million pounds (yes she is very generous)

but here is my situation, i have very very bad credit, a basic bank account and i was wondering how i could deposit this 1.2 million? do i open an isa? do i deposit in one go by cheque into my account? im black listed by the way and owe 20k to debts, thts why i only have a basic bank account, basically i need to deposit this money so i can get myself out of debt and start moving forward.

What do you guys recommend?

I would recommend learning about money and how it works. Set up a budget and stick to it. From what you described, I fear you will go from nothing to millionaire and back to nothing.

[Frugal]

I agree that it is absolutely necessary to establish a budget, no matter how much money you receive. Money can always go faster than one thinks, if they do not first establish a very workable budget.

[Little House]

I definitely agree that you will need a budget. I know a woman who inherited quite a bit of money and has completely blown it living an extravagant lifestyle. She didn't have to earn the money, so she didn't pay any attention to where she was spending it. Now she's freaking out because she's running out of money. Learn from your debt, create a budget, save and invest this "inheritance."

[snafu]

What are the laws/rules in your country for deposits? I ask because we must provide a paper trail for sums over $ 10,000. Establishing a budget is important so you can tell money what to do...instead of wondering where it went.

I suggest you post your expenses and debt details, for well thought-out suggestions from the experienced participants on SA...

[DjH4yZ]

thankyou for your posts guys well dont worry i am very careful with money and i plan to go into property development with it and rent out properties, its just i was wondering, would a bank look into how i got the money? or would they just be happy that i have it in there lol. i too dont kno the answer to that question but yes i intend to clear my debts but i was wondering where to deposit it in the first place as ill need access to it quite abit to withdraw cash for debts etc untill i get out of debt and get a gd enough credit rating to have a normal bank acount again with cheques etc.

Im basically gettin this in a cheque or bank transfer means, so it will be one lump sum so i just need an idea where to put it for a short term untill i can spread it into different accounts and manage it but still have easy access to it if need be for withdraws.

im thinking a savings account

[goldensun]

If you are getting a gift from someone else then you have to pay tax on that, at least in the UK + USA. Don't know where you are from but is worth checking up the rules for this and seeing how best to minimize this.

[couchrobt]

Real estate and property investing is always a good choice when you want to have a business or merely just to invest. That is if you can afford it. Go ahead, just get a very trustworthy agent to help you out.

[DjH4yZ]

after recent research ive rfound tht is the gift is deemed as a one off then the gift is not taxed, but the interest it makes in a savings account ie ISA, is taxed so ive decided just to put into into my bank account or bonds

[DjH4yZ]

after recent research ive found tht if the gift is deemed as a one off then the gift is not taxed, but the interest it makes in a savings account ie ISA, is taxed so ive decided just to put into into my bank account or bonds and skip the ISA as i will need ot make pretty high withdrawals, with buying the houses etc

[msarro]

If you're getting that much money, I'd split it amongst some high dividend yield stocks or blue chips for awhile until you get your situation figured out. I'm partial to real estate trust funds because they usually give monthly dividends but you have to babysit them.

Also, if its a gift, you're going to be taxed on it.

Be careful with real estate as well, all it takes is some bad tenants and your property value can plummet. I honestly trust dividend yields more.

[MonkeyMama]

Originally Posted by goldensun

If you are getting a gift from someone else then you have to pay tax on that, at least in the UK + USA. Don't know where you are from but is worth checking up the rules for this and seeing how best to minimize this.

In the U.S. you don't pay taxes on gifts. The Gifter may have to pay a gift tax. Even that is unlikely unless you give away multi millions.

I don't know about the UK - but to clarify.

[couchrobt]

They make you pay for the taxes unless it is given as a gift --correct. You are in luck however, when that really happens.

[maat55]

Personally, I would make an appointment with a CPA.

[msarro]

Originally Posted by maat55

Personally, I would make an appointment with a CPA.

Agreed. A CPA and a money advisor. Most people who go from nothing to having a large amount of wealth end up in worse shape afterwards. Whatever you do - do NOT go on a spending spree.

[DjH4yZ]

wow so much response on this and there was me thinkin i wouldnt get anything lol. well just to let you guys kno... im investing the bulk amount into property (buy to let) to set myself up financially to be comfortable, and im goin to be doin all the research needed before i go into it, i have a few friends who are doing it right now so i have the advice, plus the person who is giving me this gift has 8 houses to run anyway and the remaining bit will be going to buy a house for myself and a new car. the rest will be invested. i am also going to university to study accounting and hoope to become a meber of the ACCA eventually