Assuming no need for work, I would say £2.5m to never work again. Tax free savings aren't much in the UK: you can put away £11k per year in an ISA and £40k total in Premium Bonds. For non UK people, ISAs are tax-free savings accounts that can either be cash only, stock only or half cash/stock (but stock only has a higher annual limit).
An initial £500k is used to clear any debts, clear the mortgage (or buy a new house) and buy whatever creature comforts are needed e.g. do up the house, buy a nice efficient car, etc. I would probably go and live in Spain and build an eco house, solar is actually decent there and living costs are pretty low (if you don't need to work!).
Let's assume a poor rate of return of 3% on the remaining £2m, or £60,000 before tax. The taxman will take 20% of that giving £48,000 to you. £11k of that should go straight back into tax free savings, so you've got £37,000 remaining. Some years you'll do better, some you'll do worse, but you could probably push for 5% without much trouble most years. I think my first port of call would be to hire a very good accountant.
That's not a bad salary at all, especially if you own your house, car, etc. It's also more than enough to support dependents, but if you start thinking about private schools then it eats into it a bit. You have plenty to live day to day and enough to go on a good holiday each year.
Let's assume you're fairly old when you get this magic windfall and have 40 years left to live. By the time you die, you'll have around a million in the ISA, by the power of compound interest. The bonds will pay out on average 1-2% a year leaving around £80k unless you win the jackpot. You'll also still have your starter £2m.
Remember that rich people stay rich because they don't spend money.
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Well some people love the rich life here!
Assuming no need for work, I would say £2.5m to never work again. Tax free savings aren't much in the UK: you can put away £11k per year in an ISA and £40k total in Premium Bonds. For non UK people, ISAs are tax-free savings accounts that can either be cash only, stock only or half cash/stock (but stock only has a higher annual limit).
An initial £500k is used to clear any debts, clear the mortgage (or buy a new house) and buy whatever creature comforts are needed e.g. do up the house, buy a nice efficient car, etc. I would probably go and live in Spain and build an eco house, solar is actually decent there and living costs are pretty low (if you don't need to work!).
Let's assume a poor rate of return of 3% on the remaining £2m, or £60,000 before tax. The taxman will take 20% of that giving £48,000 to you. £11k of that should go straight back into tax free savings, so you've got £37,000 remaining. Some years you'll do better, some you'll do worse, but you could probably push for 5% without much trouble most years. I think my first port of call would be to hire a very good accountant.
That's not a bad salary at all, especially if you own your house, car, etc. It's also more than enough to support dependents, but if you start thinking about private schools then it eats into it a bit. You have plenty to live day to day and enough to go on a good holiday each year.
Let's assume you're fairly old when you get this magic windfall and have 40 years left to live. By the time you die, you'll have around a million in the ISA, by the power of compound interest. The bonds will pay out on average 1-2% a year leaving around £80k unless you win the jackpot. You'll also still have your starter £2m.
Remember that rich people stay rich because they don't spend money.