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  • FIRST POST
    • Nevetsnor53
    • By Nevetsnor53 10th Jun 17, 6:14 PM
    • 1Posts
    • 0Thanks
    Nevetsnor53
    520k to invest
    • #1
    • 10th Jun 17, 6:14 PM
    520k to invest 10th Jun 17 at 6:14 PM
    Hi guys I'm 53yrs old and have inherited £520k I'm looking to invest this to enable a monthly return of 3.5k after tax and to keep the £520k capital on an even keel,I haven't a clue where to start,I've never had this much money in my life!
Page 1
    • le loup
    • By le loup 10th Jun 17, 6:24 PM
    • 3,515 Posts
    • 3,304 Thanks
    le loup
    • #2
    • 10th Jun 17, 6:24 PM
    • #2
    • 10th Jun 17, 6:24 PM
    what research have you done already?
    • Economic
    • By Economic 10th Jun 17, 6:24 PM
    • 66 Posts
    • 42 Thanks
    Economic
    • #3
    • 10th Jun 17, 6:24 PM
    • #3
    • 10th Jun 17, 6:24 PM
    That is £42,000pa after tax! I would like to know where to get such a return!
    • badger09
    • By badger09 10th Jun 17, 6:39 PM
    • 4,978 Posts
    • 4,176 Thanks
    badger09
    • #4
    • 10th Jun 17, 6:39 PM
    • #4
    • 10th Jun 17, 6:39 PM
    I think you need to start by being realistic

    Seek advice form an IFA.
    • Stirfry
    • By Stirfry 13th Jun 17, 11:55 AM
    • 38 Posts
    • 21 Thanks
    Stirfry
    • #5
    • 13th Jun 17, 11:55 AM
    • #5
    • 13th Jun 17, 11:55 AM
    I have a similar sum to invest, but its mostly tied up in fixed interest savings while I try to learn as much as possible from this forum and other sources. You could try the free course from Future Learn about Managing Investments.
    I have just started investing in S&S isa's since the end of the last Tax year so early days for me. I hope when fully invested to receive £1200 per month but realise this is not without risk in very uncertain times.
    Why do you think that you can achieve a monthly return of 3.5k? For what reason do you need that sum?
    • dunstonh
    • By dunstonh 13th Jun 17, 12:09 PM
    • 88,131 Posts
    • 53,362 Thanks
    dunstonh
    • #6
    • 13th Jun 17, 12:09 PM
    • #6
    • 13th Jun 17, 12:09 PM
    I'm looking to invest this to enable a monthly return of 3.5k after tax and to keep the £520k capital on an even keel
    Not going to happen. You need to be more realistic.
    I am an Independent Financial Adviser (IFA). Comments are for discussion purposes only. They are not financial advice. Different people have different needs and what is right for one person may not be for another. If you feel an area discussed may be relevant to you, then please seek advice from a Financial Adviser local to you.
    • bowlhead99
    • By bowlhead99 13th Jun 17, 1:05 PM
    • 6,408 Posts
    • 11,343 Thanks
    bowlhead99
    • #7
    • 13th Jun 17, 1:05 PM
    • #7
    • 13th Jun 17, 1:05 PM
    If you lower the expectations from £3.5k a month to £1.5k a month...

    ...that would allow your investments to grow by inflation, plus about 3.5% a year on top (the 3.5% being just over £18k, which would not have much tax attached if it was mostly dividends or capital gains and you didn't have much other income).

    That would give you the ability to withdraw the £18k+ from your investment pot, pay the small amount of relevant tax, and still get about £18k a year / £1.5k a month, while preserving the initial £520k in real terms over the next 40 years or so while your £18k keeps rising in line with inflation. Not an unreasonable target.

    But

    £42k a year on £520k is 8%, and if that's an after tax number you'd need more like 9 to 10%, and that's on top of inflation (to keep your £520k preserving its real terms value over the next four or five decades you'll be living). Inflation plus 10% is simply not going to happen.

    You can start by maxing out your S&S ISA contribution allowance and pension contribution allowance for this year, which is virtually a no-brainer thing to do no matter what you end up invested in.
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