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