Join our community of smart investors

How should I invest a £100,000 inheritance?

This reader wants to invest inheritance money worth £80,000 in his Sipp and Isa over the next five years
How should I invest a £100,000 inheritance?

This reader want to invest inheritance money worth £80,000 in his Sipp and Isa over the next five years

Ddrip feeding money into investments will help to avoid investing it all at market peaks

He should have a long-term financial plan which takes into account retirement and post-retirement goals

Reader Portfolio
David 36
Description

Pensions and Isa invested in funds and shares, cash, residential property.

Objectives

Get new job paying at least £40,000 a year, change buy-to-let property mortgage to repayment basis, keep £20,000 in cash, invest £80,000 inheritance in Sipp, Isa and general investment account over next five years, medium risk profile in Isa, cautious risk profile in general investment account, avoid over diversifying.

Portfolio type
Investing for goals

David is 36 and self employed, but doesn’t earn much regular income. He lost a part-time job during the pandemic so is studying for a financial qualification and hopes to find a new job. His home is worth about £550,000 and has a mortgage of £321,000 for which he makes monthly repayments of £1,004. He also has a buy-to-let property worth about £450,000 with an interest only mortgage of £216,000, for which he makes monthly repayments of £250. As well as this, he has a lodger in his main home so most of his income comes from his properties.

To continue reading...
Join our Community of Smart Investors
  • Independent full-length company analysis
  • Actionable investment ideas and recommendations
  • Expert investment tools and data
  • Stock screens from Algy Hall
Have an account? Sign in