Need advice

alihud
alihud Posts: 126 Forumite
First Anniversary First Post Combo Breaker
in Savings & investments
Ok this is a bit of a long story so bear with me. Basically I'm wondering how to invest £40,000. I need this money to create an income as I'm not well and unable to work. I do already have three investments which were opened about five years ago. I had a very good friend who was a financial adviser,unfortunately he has had to give up work also due to ill health and is so unwell he can no longer help me. He has put me in touch with a guy from the same firm he worked for but their fees are extortionate and any help he would give me would be over the phone as he is in Wales and I'm in Wiltshire. They are charging £499 for a financial planning report and then four percent of any new investments for up to £75000. As I have three very good investments already that have served me very well over the last five years should I just put the money back into them that I've had to use and put the rest into my ISA so I know I have some money that is safe. I do have to live on this money so it's not going to be long term investments. The financial advice seems incredibly expensive to me but would it be worth it in the long run?
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Comments

  • bostonerimus
    bostonerimus Posts: 5,617 Forumite
    First Anniversary Name Dropper First Post
    Do NOT pay anyone 4% to invest...that's basically robbery.

    How much income do you need? Do you have an idea of how long you'll need the income? What are these other investments and what is your tolerance for risk......would you be ok losing 20% of your capital?
    “So we beat on, boats against the current, borne back ceaselessly into the past.”
  • alihud
    alihud Posts: 126 Forumite
    First Anniversary First Post Combo Breaker
    Yes that's pretty much what I thought too. I have a income accumulator plan and two investments through Barclays but I'm not sure exactly what they are. But I have done well with both. I don't want to invest all the money though I'm thinking maybe putting ten thousand back into the Barclays investments then putting £20000 into my cash ISA And the rest into a savings account. I'm only comfortable with a low risk. Do you need to know exactly what my investments are and in that case could I pm you?
  • Eco_Miser
    Eco_Miser Posts: 4,708 Forumite
    Name Dropper First Post First Anniversary Combo Breaker
    How much does your cash ISA return?
    You should generally be putting investments into your (S&S) ISA, protecting them from both income tax and Capital Gains Tax, and putting cash savings into unwrapped, higher interest accounts, utilising your £1000 PSA. You can get 5% interest on a few thousand, and 2 or 3% on a few tens of thousands.
    Eco Miser
    Saving money for well over half a century
  • JohnRo
    JohnRo Posts: 2,887 Forumite
    First Anniversary Combo Breaker First Post
    What are the three investments?

    How much do you need to generate to live on?

    £40K might reasonably generate between 3% to 4% income, around £1,200 to £1,600 p.a.

    With stocks and shares the income generated by a diversified global investment vehicle will be considerably more stable and dependable than the market valuation of the underlying investments. That will go down and it will go up frequently.

    With a flexible ISA you're also able to withdraw and earn higher interest on dividend cash payouts without directly sacrificing the annual allowance should you decide not to reinvest them immediately.
    'We don't need to be smarter than the rest; we need to be more disciplined than the rest.' - WB
  • bostonerimus
    bostonerimus Posts: 5,617 Forumite
    First Anniversary Name Dropper First Post
    alihud wrote: »
    Yes that's pretty much what I thought too. I have a income accumulator plan and two investments through Barclays but I'm not sure exactly what they are. But I have done well with both. I don't want to invest all the money though I'm thinking maybe putting ten thousand back into the Barclays investments then putting £20000 into my cash ISA And the rest into a savings account. I'm only comfortable with a low risk. Do you need to know exactly what my investments are and in that case could I pm you?

    First thing to do is to find out exactly how you have your existing money invested. So do some home work before you even think about paying for advice, you might not even need it.

    So what are your current investments?
    How old are you?
    Are you married?
    How much income do you need?
    “So we beat on, boats against the current, borne back ceaselessly into the past.”
  • alihud
    alihud Posts: 126 Forumite
    First Anniversary First Post Combo Breaker
    What is a PSA?
  • alihud
    alihud Posts: 126 Forumite
    First Anniversary First Post Combo Breaker
    I have three investments one accumulator plan and the other two are through Barclays I don't know exactly what they are. I just know who they are with. Do you need to know that?
    I am 49 am unable to work because of ill health and just need this money to work for me the best it can.i am divorced and yes I know I'm not in a good situation along the lines of what it has been doing really. So should I just reinvest with the ones I have?
  • JohnRo
    JohnRo Posts: 2,887 Forumite
    First Anniversary Combo Breaker First Post
    PSA = (tax free) Personal Savings Allowance.

    Interest earned is tax free up to the allowance. Currently £1000.

    Personal situation doesn't matter in terms of the numbers themselves, it's how much you have coming in, how much you need to live on and what you'll need to do, if possible, to generate that amount.
    'We don't need to be smarter than the rest; we need to be more disciplined than the rest.' - WB
  • xylophone
    xylophone Posts: 44,348 Forumite
    Name Dropper First Anniversary First Post
    Are you in receipt of state benefits ( means tested/non means tested)?

    Have you obtained a new state pension statement?

    https://www.gov.uk/check-state-pension

    What exactly are the current investments? What is the current value?

    Do you have an emergency fund?

    Are you using the best current account(s) for your circumstances?
  • bostonerimus
    bostonerimus Posts: 5,617 Forumite
    First Anniversary Name Dropper First Post
    alihud wrote: »
    I have three investments one accumulator plan and the other two are through Barclays I don't know exactly what they are. I just know who they are with. Do you need to know that?
    I am 49 am unable to work because of ill health and just need this money to work for me the best it can.i am divorced and yes I know I'm not in a good situation along the lines of what it has been doing really. So should I just reinvest with the ones I have?

    Firstly I'm going to slap you on the wrist; you have no business owning an investment and not knowing what it is. I'd like to know what the investments are to offer some advice, but you need to know how your money is invested.

    To get the 3.6% you want you'll need to take on some risk with either stocks and shares or investment and government bonds so to do that you might look at a multi-asset fund. However, I get the feeling that you don't want to risk principal so you might think about a savings bond ladder with a term out to at least 5 years. That would eventually get you 2% and you'll be able to take advantage of any increase in interest rates.
    “So we beat on, boats against the current, borne back ceaselessly into the past.”
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