Hi everyone,
So the issue I'm dealing with is that I'm receiving a £40,000 inheritance and I'm trying to plan what is the most sensible option for making the most of this money.
As a breakdown:
- I'm currently earning a £50k a year, and NET that equates to roughly £20-24k (accounting for potential bonuses and London rent).
- I have a student loan of £45k with interest of 5.6% PA.
- As I have only just started to earn sensibility and have had large previous medical expenses I've had to pay for, I have savings of £5k.
Some advice I've had is to completely pay off my student loan, however this feels like a waste of capital. My inclination is to pay off £25k of the student loan, thereby reducing the interest payments to roughly £1k a year. I'd then use the remaining £15k to open a LISA (and deposit £4,000 immediately), and to then use the remainder on investments. For these I was thinking:
- NS&I Premium Bonds (£4,000)
- An AJ Bell portfolio account (AJ Bell Ready-made portfolios | AJ Bell Youinvest) and place £4,000 in it
- Invest £1000 in the S&P 500 Index
Is this a sensible strategy? Many thanks!
Submitted August 11, 2021 at 07:14AM by sidbot2000 https://ift.tt/3yEIsi8
