How to Invest 1.5m Inheritance

LReallyLost on 22/04/2026 - 18:25
Last edited 23/04/2026 - 06:53 by 1 other user

Alright dear ozbargainers

I will be getting 1.5m inheritance in 3 months time , i would like to grow the 1.5m

I have looked at three investments options - what would make more sense?

Option 1 - buy an established business for around 1.5m which would make around $400,000-$500,000 a year

Or

Option 2 - put entire 1.5m in bunch of etfs and pray it grows and sell off as i need

Option 3 - put 1m into etfs and buy 500k business making 150k-200k a yr

Anyone been in a similar situation? How did you grow the funds?

Financial

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  • Drakesy on 22/04/2026 - 18:27
    +83

    +1 for ETFs

    Or buy a house if you don't have one.

    Fck buying a business.

    • frewer on 23/04/2026 - 08:01
      -1

      Uhhh everything is either all time high or near it. Buy high sell low ?

    • Dr Phil on 25/04/2026 - 14:12
      -1

      A property or 2 would be the best investment over the long term. (income + capital growth)
      Shares (ETFs) are going down down down over the next 2 years.

      • freesteakknives on 26/04/2026 - 12:41

        My tenant skipped out on paying rent, trashed the property while waiting 8 months for VCAT to provide the eviction order. I ended up selling because it was just too much hassle. Then I paid capital gains. Property investment is fraught with traps.
        Also remember that you need to pay rates, agents commission, repairs, tax on any income and if you're in Victoria the exorbitant annual land tax. Putting my money into super, ETFs and paying down the mortgage.

        • rexanator619 on 27/04/2026 - 11:22

          Sorry for you experience, but that's not the typical experience for most that I know and myself. There are still lots of good tenants that care and look after property, gardens and all. Gives such a peace of mind… Getting both a high rental yeild and capital growth is the golden combo! Not to mention depreciation.

        • Muppet Detector on 27/04/2026 - 17:09

          My tenant skipped out on paying rent, trashed the property while waiting 8 months for VCAT to provide the eviction order.

          I know things like this (and worse) happen fairly often, but I don't think they're as pervasive as sensationalist media would have us believe.

          May I ask if yours happened during Covid? I understand that a lot of landlords got caught short and/or taken advantage of over Covid and there were lengthy delays with xCat eviction notices etc

          I also acknowledge that the Victorians really are getting the rough end of the pineapple as well. It's as if the state wants to pony up and provide enough social housing for all those requiring rental properties… cos they certainly don't seem to be wanting private investors to stay.

          In saying all that I've had IP's since 1988 and (touch wood) never been too badly affected by dodgy tenants where bond or insurance didn't adequately compensate, but I did get a family of squatters in my PPOR from whom it took five months for me to regain possession - and that was when they decided to move out, not when the law forced them.

          No lease, no bond, no rent, no agreement. They just moved into our PPOR when the house was temporarily vacant (not sure exactly when, but less than 2 1/2 weeks).

          Both parents worked for Centrelink. Both children enrolled in Catholic School and family went to church every Sunday like the great little Christians that they were… and nobody cared that they took unlawful possession of our house, that they paid no rent for the duration of their stay, that they had displaced our family, would not allow us access to retrieve any of our furniture, possessions (including children's clothes and possessions etc) resulting in us being forced to rent another property and furnish it and buy all that other stuff.

          Nobody cared.

    • McMaferMur on 22/04/2026 - 18:32
      -2

      hmm if that 400k is nett profit after ALL expenses, it looks good

      • Drakesy on 22/04/2026 - 18:32
        +75

        big IF in which case i'd have suspicions as to why someone's selling a business that would make its value back in 3 years.

        • apsilon on 22/04/2026 - 18:43
          +7

          It's possible, it's on the low end but if there's a fair amount of risk it's not unusual. If OP hasn't successfully run a business before then I'd say in no way should they buy a business. It can be easier than starting from scratch but I've seen many well established and profitable business fail after new owners took over.

          I second buying a PPOR if they don't already have one as the first choice. Having somewhere to live and not pay rent is always a positive. Hard to say otherwise given OP has basically given no info to judge their situation and how $1.5m best fits.

        • Jimothy Wongingtons on 22/04/2026 - 18:34
          +3

          Maybe the seller is feeling generous and wants to give someone a leg up - but doesn’t wanna do it via golden ticket promo aka Charlie and the chocolate factory

        • Binchicken22 on 23/04/2026 - 22:05
          +2

          My in laws have a successful small business that profits between 300-500k a year and they've been told it's worth 1 to 1.5m… I don't see why everyone is so shocked.

          Edit: I even asked Gemini and it spits out a very similar number to what they were told … Starting to think most ozbargainers just confidently don't know wtf they are talking about… It's a bit like Reddit.

          https://g.co/gemini/share/8727701b2844

        • xavster on 25/04/2026 - 20:47
          +1

          Hi y'all,

          Assuming the 400k is EBITDA and the owner hasn't cooked the books.

          Normally, we use a multiple factor for business valuations, for an ordinary business, you're looking at a multiple between 4-7x.

          For this 'mystery' business, I'm going to take the lower end of the multiple and use a 4x multiple.

          Then with an EBITDA of $400,000 at 4x multiple, you get $1,600,000

          So the valuation here is pretty close.

          Please note that businesses come with significant risk, I've seen successful cafe's with solid profits sell to a new owner who proceeds to run it into the ground and end up closing in 1.5 years.

          • jonkvh on 27/04/2026 - 12:26

            @xavster: Funny you mention cafe's. Where I live, cafe's are valued at 1.5 to 3.0 earnings, plus per kilo of coffee bean sold per week for ranking ie 1.5 low teir etc.

        • jaejae69 on 23/04/2026 - 10:39

          How many years should it take?

      • Jimothy Wongingtons on 22/04/2026 - 18:37
        +21

        Is it gonna be like those classic cafe/restaurant jobs where the owner and his misso are doing like 150 hours unpaid overtime a week to keep it ticking over and so technically are up hundreds of thousands of dollars a year?

        • kolorijo on 23/04/2026 - 08:52
          +4

          Free exercise :~~

      • JIMB0 on 22/04/2026 - 19:15
        +17

        Maybe the seller was the reason it makes all that money and with them gone sales and profit will collapse. Then they'll open up a competing business, take all your customers and be making $400k again before selling that one to the next sucker.

        • Muppet Detector on 22/04/2026 - 20:00
          +13

          Maybe seller has two sets of books.

          Nobody sells a business turning over $500k a year for $1.5 million.

          They might hire a manager…

          (Does "make" $500k mean gross or net income? I took it as net income, but might be wrong)

        • Jimothy Wongingtons on 23/04/2026 - 08:58
          +1

          I sometimes feel I’m in this situation with my day job. My clients don’t buy a product… they pay a fair price for peace of mind with my custom solutions haha

      • supersabroso on 23/04/2026 - 22:03
        +4

        Haha that sounds like a scam or is ultra risky, if it was that easy to get a 27% annual return on $1.5M, everybody would be filthy rich.

  • brendanm on 22/04/2026 - 18:39
    +61

    TIL you can just spend $1.5m on a business and it will magically make you half a mil a year.

    • tenpercent on 22/04/2026 - 18:43
      +4

      You gotta spend money to make money.

      • Jimothy Wongingtons on 22/04/2026 - 18:44
        +1

        Ya get that on the big jobs

      • Muppet Detector on 22/04/2026 - 20:09

        How many more smashed avocado on toasts do you need to buy before you make some money?

        • tenpercent on 22/04/2026 - 20:10
          +2

          About $1.5M worth to stock your cafe making $400k - $500k per year.

          • Muppet Detector on 22/04/2026 - 20:11

            @tenpercent: I like that deal. You spend your money so I can make money.

            • tenpercent on 22/04/2026 - 20:14

              @Muppet Detector: I thought you (literal sense) were using "you" in the general sense, so I was using "your" in the general sense too.

              If I was being formal:

              About $1.5M worth to stock one's cafe making one $400k - $500k per year.

    • Jimothy Wongingtons on 22/04/2026 - 18:43
      +3

      Anything possible when everything is paid in cartoon like brown paper bags with crudely drawn green $ sign on them

    • morebunnings on 23/04/2026 - 08:49

      Well, it comes with massive risks. Chances are it will make $500k the first year, then the new owner miss manages it, market crumbles, or competition starts next door and it only makes $20k next year.

    • Caped Baldy on 23/04/2026 - 08:59

      Maybe revenue.

      Or at a casino.

    • AMLagonda on 24/04/2026 - 00:12

      NDIS?

  • Benoffie on 22/04/2026 - 18:55
    +42

    If you're getting $1.5m you can afford proper financial advice from a registered financial planner.

    Also get a decent accountant, not just your $99 eofy tax special kind

    • tenpercent on 22/04/2026 - 19:48
      +2

      If you're getting $1.5m you can afford proper financial advice from a registered financial planner.

      Not yet.

      • FireRunner on 22/04/2026 - 20:36
        +2

        Also don’t count your chickens before they hatch.

        • brendanm on 22/04/2026 - 21:26
          +12

          OP is slowly poisoning the relative, that's why it's going to take 3 months.

          • Munki on 23/04/2026 - 08:52
            +5

            @brendanm: I know of some mushrooms that can help expediate the process.

        • jv on 23/04/2026 - 00:07

          Also don’t count your chickens before they hatch.

          You can if you use ultrasound.

  • Kongzi on 22/04/2026 - 18:28
    +30

    Donate to me

    • Caped Baldy on 23/04/2026 - 09:00
      +8

      This is the best option, OP.

      • blehgg on 23/04/2026 - 11:25
        +16

        Diversify : also donate to me.

        • Caped Baldy on 23/04/2026 - 11:50
          +7

          Also a winner. I'll take my 2% consultancy fee too.

    • Tambani on 23/04/2026 - 12:34
      +7

      I also choose this guy's wife.

      • RTX9090Ti on 23/04/2026 - 19:35
        +1

        Option 4: cheat on his wife and take half his money.

        • Robbo014 on 25/04/2026 - 13:28
          +3

          Option 5: Take my wife, I'd probably save 500k a year…

  • 7ekn00 on 22/04/2026 - 19:08
    +24

    HINT1 - there are far more than 3 options
    HINT2 - you clearly need to pay for advice

    • johnno07 on 23/04/2026 - 17:29
      +1

      Free advise here though

  • Toilet Paper Hoarder on 22/04/2026 - 20:27
    +17

    Anyone been in a similar situation?

    Yes. I just got an email informing me that Prince Mumba Jumba has sadly passed away. Apparently he left me $1.5M in gold in trunk boxes. All I have to do is pay for the shipping and taxes

    • s1Lence on 22/04/2026 - 22:17
      +12

      RIP Prince Mumba Jumba, you will be missed🪦

  • 82norm on 22/04/2026 - 19:02
    +13

    Don’t do any of your options unless you intend to lose it all. Given you sound totally clueless and to the point stupid, engage in sound financial advise.

    • tenpercent on 22/04/2026 - 19:49
      +19

      engage in sound financial advise.

      Classic ozbargain

      • 82norm on 23/04/2026 - 08:35

        Typo

        • OGGazelle on 23/04/2026 - 09:51
          +7

          you sound totally clueless and to the point stupid

      • Caped Baldy on 23/04/2026 - 09:00

        Had me in the first half…

  • 87percent on 22/04/2026 - 19:26
    +11

    lol.. “anyone in a similar situation”

    Talk about a bs post

  • jv on 23/04/2026 - 00:05
    +11

    I will be getting 1.5m inheritance in 3 months time

    That is only 4.9 ft…. 😲

    • Mikeer on 23/04/2026 - 11:09

      Most people only have two

      • andresampras on 23/04/2026 - 11:53
        +1

        pity about the missing toe on his fifth

    • MrFrugalSpend on 24/04/2026 - 01:43

      if that is how high the stack of cash is, OP is doing alright

    • Muppet Detector on 24/04/2026 - 18:16

      Impressive growth spurt over three months.

  • tenpercent on 22/04/2026 - 18:38
    +10

    Saving money is also a tax-advantaged investment. Do you own your own home? Is your mortgage paid off or fully offset? Do you have solar?

    Do you have any unused concessional superannuation contribution cap for the last 5 years?

  • Cheapskate Paul on 22/04/2026 - 20:57
    +9

    As it is free money, you should invest 50% in fast women & slow horses, then waste the rest!

    • Checkmate3023 on 23/04/2026 - 08:23

      At least he wont have regrets

  • Jimothy Wongingtons on 22/04/2026 - 18:31
    +7

    Option 2

  • JimmyF on 22/04/2026 - 20:59
    +7

    Option 1 - buy an established business for around 1.5m which would make around $400,000-$500,000 a year

    LOL no business is set and forget….

    You'll turn that 1.5m into $0

    • AustriaBargain on 22/04/2026 - 21:15

      A fast food franchise can be, but you'll pay for quality managers. There's a lot of them out there though, everyone knows the McDonald's or Dominos playbook.

      • JimmyF on 22/04/2026 - 22:16
        +18

        LOL No business is being sold for 1.5m that is making $500k profit a year that is 'set and forget'. You'll be silly to sell it in the first place.

      • CharlieSheen on 23/04/2026 - 13:15
        +1

        I rememeber when I looked at the costs associated in buying a fast food franchise about 10 years ago for a McDonalds you needed at least 2 million in Liquid to even be considered. You also need to pass their training course and to be considered as a franchisee having previous business management experience is favourable. It's not something that's guaranteed.

        It's not just as easy as going to McDonalds HQ, dropping 2mil on the table and getting your keys to the store the next day.

        • JimmyF on 23/04/2026 - 20:23
          +1

          It's not just as easy as going to McDonalds HQ, dropping 2mil on the table and getting your keys to the store the next day.

          And even if it was, it isn't a set and forget' print money shop.

        • AustriaBargain on 23/04/2026 - 18:12

          You could partner with an experienced store manager, you provide most of the funding and they enter the partnership as the holder of primary responsibility, have definitive control over the store, and act as the on-site operator.

          • JimmyF on 23/04/2026 - 20:24
            +2

            @AustriaBargain: Again, not a set and forget drop $1.5m and then rack in $500k profit a year.

            In this shared arrangement, sure you're not doing the work, but also not getting all the profit and certainly not $500k

            • AustriaBargain on 23/04/2026 - 21:17

              @JimmyF: There’s politicians in my state who own a few McDonald’s and I can tell you I’ve never seen them in the store when I go in.

              • JimmyF on 23/04/2026 - 23:28
                +2

                @AustriaBargain: But did they buy them for $1.5m like claimed and do they make $500k profit each from them like you claimed?

                I'm not saying there are not set of forget businesses, I'm saying that ones that meet these claims are unicorns. I'll buy one instantly @ $1.5m if it gave me $500k return a year for being hands off. The problem is, they don't exist……..

                • AustriaBargain on 24/04/2026 - 06:15

                  @JimmyF: Whatever they paid for them and whatever they were earning, they kept them for a very long time so it must have been worth it. They didn't exactly pin their financials to the door. They were better known for having chocolate soft serve decades before every other store had it.

                  • JimmyF on 24/04/2026 - 10:09

                    @AustriaBargain:

                    Whatever they paid for them and whatever they were earning, they kept them for a very long time so it must have been worth it.

                    and that relates to your claim of spending $1.5m to buy a business that makes $500k/year totally hand off/set and forget?

                    It doesn't, stop trying to change the narrative. Yes there are many things around that make money hands off, none with a 33% ROI each year like claimed.

                    • AustriaBargain on 24/04/2026 - 10:20

                      @JimmyF: I never made that claim thank you very much.

                      • JimmyF on 24/04/2026 - 14:44

                        @AustriaBargain: Yes you did, here https://www.ozbargain.com.au/comment/17522846/redir replying to my comment on the topic of $1.5m giving you 500k profit a year.

                        A fast food franchise can be

                        So you didn't say a fast food franchise for $1.5m will get you a business that gives you $500k profit a year? Oh I think you did.

                        Most franchises are a scam, people are too stupid thinking they are cash cows, all they do is use your money to expand into areas they are not sure about. If the numbers are that good, 33% ROI as you said they can be, then the parent company would be doing it, its a no brainer.

                        All these franchises go through a cycle, rapid expansion with someone elses money, then they all go broke once the fad wears off. GYG is currently in this scam cycle, a new GYG is popping up every few days. Its the old Salsa, the old coffee club, the old subway etc. Used to be everywhere and now hardly found.

                        The people that make the money are the ones selling GYG while its in a pop cycle. Everyone else will be left holding the bag.

                        • AustriaBargain on 24/04/2026 - 14:51
                          -2

                          @JimmyF: Can't stand liars. I never said that, and I'm not going to be baited into taking a position I never said. You're going to have to try this on with someone else.

                          • JimmyF on 24/04/2026 - 17:37
                            +2

                            @AustriaBargain:

                            Can't stand liars

                            You really must hate yourself then.

                            I never said that

                            You did, you told me that fast food franchise can be purchased for that, That being the $1.5m business that can make $500k a year. I was quoting.

                            I'm not going to be baited into taking a position I never said

                            There was no baiting, you replied to me.

                            You're going to have to try this on with someone else.

                            LOL Maybe don't make claims that are not true and pretend you didn't make them next time.

  • 82norm on 22/04/2026 - 19:00
    +6

    Bet on black.

  • cashless on 23/04/2026 - 09:15
    +6

    How to Invest 1.5m Inheritance

    You've taken the most important 1st step.
    Flex about it on OzB

  • gromit on 23/04/2026 - 08:31
    +5

    First rule, don't tell everyone you just inherited 1.5m. but that one is gone I guess.
    secondly if you can find a business for 1.5m that makes that much per year then snap it up even if you have to borrow every cent to buy it. that is an insane profit for a 1.5m business. Same for the 500k business, these are not realistic numbers and if someone is telling you they are then they are most likely cooking the books to sell you a lemon.

    The only reasons to sell a business that makes that much so cheap is because the future of the business is dire or because they are family happily gifting you the business at over half price(or number 3 to get that number it includes massive amounts of unpaid labour in the price from the owning family, not uncommon for cafes etc, therefore when you calcuate the real profit where those hours are priced in it is far more modest). If it is a family gift then sure, if this is something you are buying separately then the price and return scream red flags all over the place.

    basically get proper financial advise, all your 3 options sound poorly researched and questionable from the basic info you have provided.

    • Jaspa7 on 24/04/2026 - 15:46

      ah, the old "when life gives you 1.5m.. buy lemons"

  • muzzamo on 23/04/2026 - 10:07
    +5

    1) get financial advice.

    Regardless, here's the ladder i'd follow:
    1 Pay off your consumer debt
    2 If you don't own your own house yet, pay it off completely or buy one.
    3 Max out your super carry forward contributions and and put 100K into super with a huge deduction.
    4 Consider setting some money aside for the next few years of super contributions to max out your super right up to your cap.
    5 Start looking at ETFs, ETFs purchased under a family trust, etc.

    Stay well clear of crypto or businesses. Most people overestimate how clever they are. Personally i'd stay very clear of leveraged property investment too although opinions vary on that one.

    Pay for Claude and ChatGPT and have a good conversation there, validating the strategy that your financial advisor comes up with and allowing you to probe it / ask questions of it.

  • trapper on 23/04/2026 - 12:42
    +5

    Unless you have successfully run a business in the past - do not buy a business. Gamble other peoples money on your first business (investors - they know the risks) not your own.

    • Buy or pay off a house to live in.
    • Max out your super contributions.
    • Buy a couple IP's. (pay deposit only, interest only mortgage as the interest is tax-deductible)
    • Go on an epic holiday and dedicate this to the relative you inherited from.

    If you want to buy shares, then borrow against your now paid off house to buy them - this way the interest will be tax-deductible.

  • Kazzamc on 23/04/2026 - 08:47
    +4

    I’ve recently inherited a similar amount.
    We are retired & own our home & have solar.
    I’ve put the maximum amount into mine & my hubby’s superannuation & the rest is currently sitting in a term deposit. We’re thinking about ETF’s also.

  • morebunnings on 23/04/2026 - 08:51
    +4

    Investment property + ETFs would be my choice.

    Buying a business would be too stressful personally. Especially with the current economy (Trump, Russia, AI, etc..).

  • altomic on 23/04/2026 - 12:06
    +3

    Just invest it all with the Bank of Altomic.

    Interest rates up to 27% P.A.*
    Low once off joining fee **
    Secure investment ***
    Govt backed ****

    • “up to” includes negative rates
      ** joining fee of $1,499,999
      *** sealy Posturepedic encryption technology
      **** typo. Should read “gout backed”
  • Hangryuman on 24/04/2026 - 10:29
    +3

    'I will be getting 1.5m inheritance in 3 months time , i would like to grow the 1.5m'

    I'm interpreting that as a lack of experience and knowledge about investing and business

    In which case, I'd follow Warren Buffett(one of the world's richest men)'s advice to put it all into indexed ETFs

    keep it simple - maybe 3 ETFs - S&P500 based for tech growth, ASX based to avoid US tax statement requirements

    e.g. ASX IVV shows 18% growth last 1Y. Interestingly NYSEARCA: IVV shows 32%/1Y so I dunno.

    The only trick is tracking ETF annual tax statements, AMIT cost base adjustments - easily done with a simple spreadsheet formula of last year's cost base, this year's adjustment, new cost base - each year.

    But basically warning you away from buying a business if you have no experience in Running a business - this is a classic way to LOSE a whole lot of money - no experience, what could go wrong - um - like, EVERYTHING … !!!

    Don't buy a business expecting to sit back while the money rolls in - money talks! - and in your case it might only say goodbye.

    • ReallyLost on 24/04/2026 - 11:49

      e.g. ASX IVV shows 18% growth last 1Y. Interestingly NYSEARCA: IVV shows 32%/1Y so I dunno.

      Would this be due to currency? How would you overcome this issue?

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