I want to set up a monthly withdrawal so I get an income from my investments. Is there anything I need to know?
You can set up a monthly withdrawal to take a monthly income, while leaving the rest of your money invested. This gives it a chance to grow further.
Before you set up a monthly withdrawal, it's important to think about how much you'd like to receive on a monthly basis. You'll then be able to figure out how long you'd be able to receive that amount every month, based on the total value of your investments.
It's also important to think about the investment approaches you'll be invested in when taking an income. Higher risk investments experience more ups and downs, so you could be withdrawing money from your account while the markets also experience a dip.
Over time, that could mean the income you wanted from your investments may not last as long. Lower risk investments are more stable, so won't grow significantly, but shouldn't fall significantly either.
There are also tax implications to making a withdrawal. For example, if you withdraw from an ISA, but replace the amount you withdrew, it still counts towards your annual ISA allowance. Also, if you make a withdrawal from your Investment Account, the withdrawal could be subject to capital gains tax.