I want a monthly income from my inheritance, what should I do?

bostonerimus

Zero_Sum wrote: »

24% a year. Of course you are......


Actually there are ways to get this return but only on small amounts that will give you about £10 a month.

Pedantry corner....2% each month is actually 26.82% a year.

eskbanker

bostonerimus wrote: »

Pedantry corner....2% each month is actually 26.82% a year.

Only if reinvested - OP's desire (as per thread title) is to draw this notional 2% off as monthly income, so no compounding, although perhaps the rules of mathematics differ on whichever planet they're on!

bostonerimus

Good point, it never pays to be pedantic;)

Alexland

Even Facebook scams don't pay 2% income each month. Most likely 2% pa with 1/12th of this interest paid monthly.

Back to the OPs original question there are high yield investments that pay distributions of 4% pa however this is usually at the expense of capital growth and a total return approach may be better if you don't actually need the income as you already have £4k per month from the business.

Alex

AnotherJoe

bostonerimus wrote: »

Good point, it never pays to be pedantic;)

Just to be pedantic, sometimes it does pay to be pedantic.

Sea_Shell

I hope the OP isn't banking on "living off the profit" that his remaining £70,000 windfall will give him.

Pocket money maybe, but not to live off. !!

Sea_Shell

smashy wrote: »

Well, the reason I ask is because I have a savings account where the interest is like 0,35%, but I have a savings account for my daughter where the interest is 2%, so that makes around 1000k per month at least of profits.

I'd love to see the statements for that account. Someone's going to be in for a nasty shock I suspect!!!

I hope you haven't been building up your daughters expectations of what her saving are worth.

(or does she really have £600,000 - nice problem to have!!)

Flugelhorn

I wonder if the OP Smashy is related to Crashy of the house price board?

Flobberchops

OP: Delighted to hear about your good fortune. You're sensibly paying down debts first and investing the remainder. I also assume you'll be saving a lot of your £4k monthly income.


I think you have some fuzzy thinking going on about exactly how much interest can be gained from cash savings accounts. It's completely believable that your daughter has an account paying 2% annually. Many savings accounts pay interest monthly, so I don't doubt that's true either. But each monthly payment will be 1/12th of the annual interest figure - please check the exact terms of your daughter's savings account before you really grasp the wrong end of the stick and make a regrettable mistake with your money.


To echo some of the advice above, if I was you then after clearing all debts I would put £20,000 in a stocks and shares ISA. You say you want to invest for income so pick a fund, or if you're brave individual stocks, that pay dividends. Consider paying into a SIPP for later life, and if you want to share your good fortune with your daughter then she can also receive £4k a year into a Junior ISA and a few thousand per year into a pension. You don't mention a wife or partner, but if you trust them with your money (enough to give them money as a gift) then that's another £20k a year ISA allowance to use. The remaining £30-£50k could get cycled through several Regular Savers or plonked in a Marcus account until next April 6th rolls around, at which point you can buy another £20k worth of dividend funds/stocks. Repeat yearly, building up cash savings in an accessible account and paying as much into the ISA(s) as you can afford and feel comfortable with.


Do your homework and best of luck.

Robster88

smashy wrote: »

No, it is actually a 2% interest monthly, not annually.

Oh deary me..

If not trolling, someone is in for a shock.

2% interest paid monthly just means that that annual interest (at 2%) is paid in monthly amounts (indeed it is usually slightly lower than the headline annual interest rate to take into account compound interest).

It does not mean that you receive 2% interest every month.