View Full Version : 700,000 - would you spend it or invest it?

13th Aug 2008, 14:52
Colin Stagg, cleared in 1994 of the 1992 murder of Rachel Nickell (Robert Napper, 41, was charged with Ms Nickell's murder on 28th November last year and is awaiting trial) has been awarded 706,000 in damages. ( Rachel Nickell murder case - Wikipedia, the free encyclopedia (http://en.wikipedia.org/wiki/Rachel_Nickell) )
How would you manage the 700,000? I guess that most folk would pay off their mortgage and maybe move to a better property, or buy an expensive car (or even an airplane or 'just' a yacht).
Invested, it would return about 35,000 pa (though subject to tax in the UK), so perhaps a move to Panama?
Of course, you could use it to finance a business - or just spend spend spend like Viv Nicholson (http://en.wikipedia.org/wiki/Viv_Nicholson) until it was all used up and then rely on the State to look after you.

Stagg (now aged 45) has meanwhile published two books, so it is reasonable to assume that he is not destitute (not guaranteed I admit).

13th Aug 2008, 15:34
Whoosh: Bed Made of DC-9 Fins Lets You Join Mile High Club at Sea Level (http://gizmodo.com/5036409/bed-made-of-dc+9-fins-lets-you-join-mile-high-club-at-sea-level)

(Sorry, could not resist)

13th Aug 2008, 15:38
I would buy 100 ounces in gold coins with $85,000 of it. That would guarantee you a year of life on the lam if the world falls apart.

13th Aug 2008, 15:47
If Mr. Stagg has been wrongly convicted, then I wholly welcome the damages that have been awarded to him. Hopefully, they are sufficiently on the generous side.

If I was Mr. Stagg, and without other immediate financial commitments, I might be inclined to invest 10-20% into a trust-fund that specialised in cases such as his own. Perhaps available to finance the defense side (and partake in any future compenstaion awards) with regards to all the other cases that have not yet been processed for whatever reason.

Frankly, I'd much prefer a system where the prosecutor himself (as a private citizen) earned a small commission on every convict sent away. But could also be held accountable for every wrongful conviction, jointly and severally with the Crown. That way, the prosecutor might have more interests in pursuing cases only where there was a solid proof - there would very rarely be any need to compensate (or sell the family home, pension investments etc.) which otherwise might be involved in less solid convictions conducted by the state (and only by the state)...?! :rolleyes:

PS. If I was Mr. Stagg and felt really, really upset, I might just enquire how much a Stinger SAM would cost delivered CIF London Docklands... :uhoh: I'd have to be extremely upset to do that though, but you have to wonder about other individuals, whether or not they're Muslim extremists or merely severely-disgruntled citizens who're also Muslim?! :ugh:

Whatever, I'm not very sure that I would have broached the subject in quite the flippant manner that G-CPTN has chosen to do so here...

Standard Noise
13th Aug 2008, 15:59
700k for 13 months in custody? Bugger me but that's not too Craigavad!
I know his life has been made hell, but that was mainly by the gentlefolk of the fourth estate.

Not a bad old kick though, no wonder he accepted. Even Stephen Downing only got about 750k and he was locked up for 27 years!

13th Aug 2008, 16:25
I knew one of his cuz's. Worked in my warehouse. Now he was a nutter.

13th Aug 2008, 17:58
I'm not very sure that I would have broached the subject in quite the flippant manner that G-CPTN has chosen to do so here...I thought I was careful to divorce the question of the guilt/innocence of Mr Stagg (by including factual accounts) from the 'windfall' that he finds he has received. The evidence seems to indicate that Stagg was 'fitted up' (he never confessed, despite the 'honey trap' - there was no forensic evidence and he was refused the 'right' to provide a DNA sample when the Police found DNA evidence, even before he was charged).
However, forget the person involved, just concentrate on the subject of this thread - How would you handle 700,000?

As someone who has recently come by almost exactly that sum of money, I spent half of it on a house (for me to live in) and divided the remainder between my children (I reckon that they can benefit more from receiving a legacy now rather than in a few years time - and maybe they will avoid inheritance tax).
I have no desire for a yacht or profligate living (having lived parsimoniously for the last two decades).

How much would you need before you could 'spend' without worrying?

When the National Lottery first started, I mused about winning 9 million and how I would spend it.
I decided that I didn't want to move, but I needed to employ a (retired Police sergeant as a) security manager. I would also employ the guy from the horticultural machinery workshop as 'garden maintenance manager' with responsibility to provide/maintain the machinery and hire labour as necessary.
Some building adjustment to the barns to accommodate the cars - a 30s Bentley, a modern Bentley, a Porsche 959 and a Lotus Seven (full house track specification).
Helicopter lessons and maybe a lease of a Robinson 44.
No yacht, no villa, maybe the occasional holiday in Madeira (I don't enjoy hot).
A BMW 525X Estate for daughter (she was working with horses in the Scottish Borders at the time) and a Rav4 for my son (it was what he wanted) and a new Peugeot estate for the wife (although she wouldn't have refused an Aston Martin DB5).
The result was that I ran out of spend before 3 million pounds, and the remaining 6 million invested would have provided adequate income to live on . . .

Standard Noise
13th Aug 2008, 18:50
You could always adopt a 'Standard Noise'. That'd take care of a nice wedge.:ok:

Personally, I'd be happy to be mortgage free (after putting on an extension) cos we're quite happy where we are. Maybe a little pied-a-terre in Lyme Regis or Looe as a weekend retreat. But that'd be it for me, I earn a decent wage, so I'm reasonably happy.

13th Aug 2008, 19:54
Spend it. Don't invest it.

If you spend it, you've got something to show.
If you invest it, someone else spends it and you've got nothing.

C130 Techie
13th Aug 2008, 20:53
The current reckoning is that in your 20s you would need need to win around 5 million to set yourself up for life without having to work.

I would give it a good try now with 700,000.

14th Aug 2008, 04:58
I'm with Basil - definitely buy some property.
Regardless of the market, get a roof over your head and one or two "buy to let" properties.
A good solid 4x4 to get you around and if you are frugal then between the remainder and the income off the houses, you will do well.

14th Aug 2008, 08:03
Spend it.

You came into the World with nothing, if you go out in debt - you've made a profit !

14th Aug 2008, 08:19
Be nice.

Give it to me.;)

Flap 5
14th Aug 2008, 09:19
Buy a house at 206,000. The market is great for pushing for bargains in the next few months. Invest the remaining 500,000 in a regular savings account where you get a regular income as you will need money to spend. The Motley Fool and other website have comparison tables:

Fool.co.uk - Compare Best Savings Accounts (http://www.fool.co.uk/savings/compare-savings-accounts.aspx)

You can easily get 6% which amounts to 30,000 per year. This is above the average annual earnings in the UK.

You can easily live off 706,000. But is everyone that sensible?

14th Aug 2008, 11:06
Having seen him being interviewed on TV outside the dingy flat where he lives. Then a house would be first order of priority for him. In my case I suspect I might not clear either mortgage as one pays for itself and the other helps with the tax bill. Both are essentially the pension fund. What I wouldn't do is invest it in one of those managed funds tied to the market. My wife did that and naturally enough suffered a loss with the current downturn. A significant loss, not a problem in the medium term as things will undoubtedly turn around but a total pain if we have to access the money early. Lesson learned there.

Some of the money would be spent foolishly, at least on a new car. My current model is fast approaching the 100,000 mark. But the main part would be used as a means escape from my current employment. My boss' hero is Michael O'Leary. Enuff said. Maybe out of aviation all together. It has lost it's allure somewhat.

Squeegee Longtail
14th Aug 2008, 11:35
Someone once said that in old age you look back and regret your economies in life, but never your extravagencies.

...so spend and enjoy!

Flap 5
14th Aug 2008, 12:24
That is a luxury you can afford in old age - if you are then in a position to say it.

Utrinque Apparatus
14th Aug 2008, 15:37
Can't help comparing it to compensation awards to our lads and lasses serving with distinction in theatre in Iraq, Afghanistan and Selly Oak :hmm:

:mad: Ambulance chasing Lawyers. The Met should let it be known they will fight any action against them now to the hilt and let Stagg pay any bills to them from his 700k bung. Let's see how long it lasts.

The award is typical of the tilt in our society which is skewed to the scum and milks the rest of us to pay for it. Abu Hamza has cost us how much so far? Stagg, allegedly, was "known to the police" and despite his weird actions at the time and their admittedly scurrilous behaviour towards him in the case of Rachel, he certainly does not deserve such a sum. Her young son, who witnessed the actual attack at the age of 2 got c90k I believe :ugh:

14th Aug 2008, 15:53
G-CPTN, your taste in cars leaves something to be desired perhaps...?! :yuk: But how you can divorce how one arrives with a windfall of such a sum, and how it is spent, is quite beyond me (hey, it's your post, you chose to use the ostensible windfall) of a previously convicted felon, now found innocent...?!

As Standard Noise adroitly posed, if you need help in disposing of or otherwise investing your own 'windfall', then we're both available 'for adoption' or otherwise here to help you out. But why involve Mr. Stagg then..?! :confused:

PS. I have high hopes of winning the EuroMillions jackpot of 55m this Friday. But I won't be posting here in JB asking about how to spend it all. Admittedly, I may have some questions about buying a King Air 300 series right away as opposed to waiting another few months for Honda's executive jet. Otherwise, I might also have some questions about building a dome home (hurricane, earthquake and tornado-proof) apparently, together with loads of others involving wind -power, solar panel electricity generation and heat transfer installations...?!

BTW, would spending $2m on a Bugatti Veyron (if one had 55m to hand) really be that exorbitant? I hate what they look like, but I'm told that they're the best car anyone has yet produced...?! :ok:

14th Aug 2008, 16:20
One is reminded of the Pools winner who had blown his 4 million in 5 years who was asked how he had spent the money:

'90% went on wine, women and song', our hero said, 'and I wasted the rest'.

Way to go mate!

Standard Noise
14th Aug 2008, 17:08
Which goes to prove that winning the lottery doesn't do you any good. If I won 4 million quid and spent it in just 5 years, I'd like to think I could come up with something more original than '90% went on wine, women and song.......and I wasted the rest.'
Ripping off a 30 year old Georgie Best line! Scumbag should be hung by the nads til he learns a bit of humility.