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    • Pobby
    • By Pobby 22nd Nov 17, 7:53 PM
    • 5,189Posts
    • 11,332Thanks
    Pobby
    Investment for income
    • #1
    • 22nd Nov 17, 7:53 PM
    Investment for income 22nd Nov 17 at 7:53 PM
    I intended to rent out a house but to be frank my wife doen`t want the hassle. This will give me £150,000 to invest. Our pensions are OK plus we have an emergency fund in ISAs and the bank. In the past I invested for capital growth, so long term. I am looking at perhaps 5% return. Any thoughts guys?
Page 2
    • OldMusicGuy
    • By OldMusicGuy 28th Nov 17, 2:10 PM
    • 209 Posts
    • 392 Thanks
    OldMusicGuy
    My worry is this. I have twice invested just before a crash. This was in the days when I was working. It might be sais we so much debt around and the length between the last crash, may be we are due a new crash soon?
    Originally posted by Pobby
    Better you don't invest, it might have been your fault the last two times!

    I can guarantee there will be another crash, the only things I can't say are a) when it will be or b) how bad it will be when it happens. It is pointless trying to time the market (plenty of threads on here about that). You need to decide if you want to lose out on what is left of this bull run or play it safe and stay conservative for now.

    You need to decide about your long term investment goals compared to your short term needs. For example, I am retiring next year so am holding about 30% of my investments in cash and near-cash investments. But I still have a big chunk invested that I plan to leave untouched for 10 to 15 years so it can ride out any short term downturns and provide a combination of income and capital growth.
    • Audaxer
    • By Audaxer 28th Nov 17, 7:55 PM
    • 667 Posts
    • 305 Thanks
    Audaxer
    My worry is this. I have twice invested just before a crash. This was in the days when I was working. It might be sais we so much debt around and the length between the last crash, may be we are due a new crash soon?
    Originally posted by Pobby
    I am concerned about a possible crash as well, but if you are investing just in income generating funds/ITs, then although the value of your investment may fall significantly in a crash, I understand that in many cases dividends will continue to be paid, and dividends are based on the number of units/shares you hold rather than on the fund's value.
    • Pobby
    • By Pobby 29th Nov 17, 5:47 PM
    • 5,189 Posts
    • 11,332 Thanks
    Pobby
    Thanks all, Keep them coming please.
    • enthusiasticsaver
    • By enthusiasticsaver 29th Nov 17, 7:46 PM
    • 4,869 Posts
    • 9,192 Thanks
    enthusiasticsaver
    As Audaxer says even if there is a crash the dividends usually continue to pay out. I have a mix of cash as I am coming up to retirement and diversified global funds which are split between income and accumulation. So long as I have enough accessible liquid assets to ride out a crash that is all I worry about. 5% return may be a little optimistic though. I work on a 4% yield. I will not consider property at this time. Too much hassle.
    3 days to go until early retirement. Debt free and mortgage free.

    I'm a Board Guide on the Debt-Free Wannabe, Mortgages, Banking and Budgeting boards. I volunteer to help get your forum questions answered and keep the forum running smoothly. Any views are mine and not the official line of moneysavingexpert.com. Pease remember, board guides don't read every post. If you spot an illegal or inappropriate post then please report it to forumteam@moneysavingexpert.com
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