Hi there, Long time lurker here. I have been trying to learn as much as possible about PF over the last few months. I thought I would lay out my situation for and feedback, tips and scrutiny.
As the title says I had a very fortunate windfall last year which is as follows-
I unexpectedly inherited a few hundred thousand shares in a family business. The market value of these shares are worth close to 2.4m€ (I am based in the EU)
These shares provide me with an annual income of about €70,000 NET.
My current financial situation is as follows. 28 years old with no debt. €80k in a deposit account saving towards cost of my first house €33k On deposit as my emergency fund €10k put away on deposit for a new car. Mines nearly dead so will have to upgrade in the coming year or so, nothing extravagant.
for ease of planning If I break down my income from this dividend into individual months I get close to €5500/month.
Each month I allocate: €2000 to my current acc for my living expenses. €2000 to my house savings account. €1500 to my Emergency fund.
My emergency fund acc never goes below €30,000 that is the lower limit I mentally set. However any money above that I do use to indulge, mainly travel. e.g. it was at €35,000 last month so me and my SO took a week off and went to china. Travel is important to me at this age as I spent all of my 20's working.
On the topic of work - I started a company at 21 and grew it to a nice business. I stepped back 18 months ago to start my second business which is still in complete startup phase. This IMOP is the best part of my fortunate situation, I can take time to start companies and survive on my dividend income while doing so.
So thats my situation. It is extremely fortunate and unexpected. despite being able to stop working I genuinely love it and will continue to build companies and employ people in doing so.
My main questions would be as follows -
I don't currently re-invest any of my income. I was thinking of starting a long term Vanguard fund and possibly investing €500/month. Would this be a good starting point?.
At times I feel overexposed by effectively having all my income coming from one source, however.. selling the shares is not an option (family policy). This family business is over 100 years old and very well established. The last 20-30 years have seen resilience and good growth. However... it does play on my mind. I would like to hear any advice on mitigating this risk without selling shares.
Is there anything I am missing or should be considering given my circumstances? Should I be saving more, looking at various options etc.
Thanks for reading. I am sure I will have missed a few things so please let me fill in any gaps below.
Submitted April 25, 2018 at 09:25AM by DooDuffer1 https://ift.tt/2HQiO2C
