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

Apodemus

Robin9 wrote: »

Yes to pay off your debts.

Then have a word with a mortgage broker and see what property you could afford.

Useful advice to the OP, as long as they bear in mind that there can sometimes be a difference between what they can afford versus what they need. Too many people end up with more house and bigger mortgage than is wise. Yes, sometimes that pays off, with the benefits of a leveraged investment in a rising market, but it is not a certainty.

Alexland

If you can comfortably afford a bigger house than you need without an excessive mortgage then I don't see the harm. Our house has unnecessary rooms including 2x offices, a guest bedroom, a playroom for the kids, etc and it just makes everyday life nicer. The main downside is mowing the bigger garden and paying tree surgeons every year.

Apodemus

Agreed. My point, though, was what a mortgage broker may deem affordable and what is in practice affordable or wise might be very different.

We need to remember that the regular posters on here are likely to have a much better handle on financial planning and decision making than the average!

pjcox2005

Looks like the last few posts are all along similar lines and I agree.

Personally I’d go

£20k to pay off all debts.

£30k house deposit - if you don’t think you’ll buy within 12 months then open a LISA (savings account version) to pay in £4K now and £4K in April. 25% uplift so an extra £2k when coming to buy. Do the same with a partner if you have one.

If you’ve got no pension you need to start, I’d put £40k say in a private pension so you get the tax relief. 40% on your high rate earnings. You should start putting some monthly income aside too.

Remaining £30k I’d put in normal savings account, or regular savers which pay higher interest. Remainder I’d start investing in a stock and shares isa so you have access for now. Hargreaves Lansdown and Vanguard lifestrategy finds maybe worth reading up on as a starting point but use your financial advisor.

Most importantly I’d work out a yearly budget as debt seems strange when you earn £4K a month. As part of that budget, try to ensure you’re saving something every month even if it’s £200.

johnadams7

smashy wrote: »

Ok guys I checked the savings account and you were right it is 2%PA (per annum).

I'm not a troll but I am very bad at numbers stuff and saving/investing money as I had zero education about it.

I am now trying to learn as much as I can to be able to know what I am doing. Even if I get a financial advisor I still want to know what I am doing.

I would love to invest my inheritance money and get dividends from it that allow me to live comfortably , as well as saving for the future.

It seems to me that all those stocks and shares funds and pension funds and etc are all into the future, not into giving dividends in the present, am I right?

You are never going to live comfortably on that inheritance - sorry it isn't much. Especially with your debts.

If your business makes 4k a month, is that net, or is that gross. If it is net, why do you have so much debt?

Maybe you need to focus clearing the debt first, then paying into your daughters accou% nt. The interest on the debt, will be higher than the 2% per month.... cough 2% per year.

johnadams7

meant to say focus on clearing the debt rather than paying in for your daughter. That comes a long way down the list.

People on here always push vanguard lifestrategy. I know you like the headline i.e big returns, don't buy your portfolio on previous returns. That is very important. If you want to do a bit better than a marcus account, by that i mean around 2- 3% on top averaged over 10 years the 60/40 may be the appropriate equity to bonds, if your aiming for maybe 3-4% then 80/20

smashy

johnadams7 wrote: »

You are never going to live comfortably on that inheritance - sorry it isn't much. Especially with your debts.

If your business makes 4k a month, is that net, or is that gross. If it is net, why do you have so much debt?

Maybe you need to focus clearing the debt first, then paying into your daughters accou% nt. The interest on the debt, will be higher than the 2% per month.... cough 2% per year.

Two reasons I have so much debt: my own business started very slow and I wasn't making the 4k month I am doing now.

Also, at that time, my ex-husband and father of my children got sick and unwell to take care of them and work, so no more sharing children expenses and is all on me.

So at that time I had to use credit cards to be able to live and pay for everything. It was a really hard time but also pushed me to grow my business.

That's the reason for my debts. I have been paying them every month consistently, but now I have an opportunity to clear them all for good and be able to enjoy life in a different way.

enthusiasticsaver

Tackle your debts first of all.

Then start to research mortgages and investing but in the meantime put it in a savings account.

Doubleshotdamo

4K per month earnings, yet 20K in debt? You must be living it up.

eskbanker

Doubleshotdamo wrote: »

4K per month earnings, yet 20K in debt? You must be living it up.

Didn't you spot OP addressing that very point two posts before yours?