Bvlp;336240 wrote:Hi everyone,
Coming back to this forum after a few years break and things have moved on quite considerably in my investing journey. Thanks to something of a 'grand designs' type property redevelopment I had to sell out of almost all my non pension investments which went into the house, this was not necessarily the plan but me and the family are happy with the result. This has led us to have only 40k across my own and my wife's ISA's, which at the moment is sitting in cash. We have a very small mortgage and it would not be beneficial to pay it off as it gives me premier account benefits with my bank.
My career has also had quite the upheaval, I have moved from the big corporate world into private equity, as a member of the exec management team of a PE backed business. We have recently had a very successful PE exit and reinvestment process which had led to me receiving just under 900k, net of tax, lump sum today. I also have just under 900k reinvested as debt into the business and a new equity stake which could be worth anything from zero to over 10 million at the next PE exit depending on the performance of the business and my own continued service.
This level of immediate wealth is completely alien to me and I am finding it very difficult to decide how to invest it and who to speak to for advice. I am absolutely terrified by the prospect of dropping a significant chunk of it into the equity markets at the moment and do not think I will be able to hold my nerve with anything close to a 30% + drop, especially when the upside is taxable. I also now see that essentially a large portion of my net worth is tied up in a single, private, UK mid cap business so I am already massively exposed to equity as an asset class.
Myself and my wife are mid 30's with young children, I love the work I do and have no desire to retire early. We can fill our ISA's and pensions with our salaries without dipping into any of the lump sum amounts. We are really lost with with what to do with this money.
There is a lot of wisdom in these forums gained over many years, so interested to hear from anyone that cares to share what you would do in this situation?
Put the whole lot into Apple shares (currently $241)
Look at your situation holistically and you must include your house, the strretlights on the road outside,
your childrens' schools, your doctor et al. In other words, even without your employment tie-in, you are unavoidably hugely overweight UK. Balance it out. It your PE venture does as well as you hope, this £900k investment will become a side hustle.
Apple share price won't shoot the lights out either but you can expect c £800 (after tax) to drop into your account every quarter, even if does lose 30% on the share price. You can live with that. After all, you are in your thirties, not your eighties.