Investment advice

lordthorpe

Hello everyone. This is my first post, so apologies if this has already been answered elsewhere.

I have over £120,000 to invest for the long term. I have no mortgage or other debts. I am looking at an investment where I could take a monthly payout without touching the principle and where I can add to this principle as funds allow.

I am already saving the money with ING and the AA to get 6%+, are there any other options that pay a higher percentage for an amount of this size?

any advice gratefully recieved.

gozomark

are you prepared to put your capital at risk ?

lordthorpe

I acknowledge that theres a risk with all savings and investments, I have an open mind at the moment. Ideally the rewards would be high and the risks low - the trick is finding the sweet spot where they balance each other out.

My initial thought is to buy a property and rent it out and generate an income stream that way and hope that the property prices pick up in the next 5 years or so.

I,_Brian

lordthorpe wrote: »

Hello everyone. This is my first post, so apologies if this has already been answered elsewhere.

I have over £120,000 to invest for the long term. I have no mortgage or other debts. I am looking at an investment where I could take a monthly payout without touching the principle and where I can add to this principle as funds allow.

I am already saving the money with ING and the AA to get 6%+, are there any other options that pay a higher percentage for an amount of this size?

any advice gratefully recieved.

I think you really need to have a chat with a qualified IFA with experience in investment strategies.

Additionally, you may want to read Investing For Dummies (UK edition) to get an idea of investment options:

http://www.amazon.co.uk/Investing-Dummies-UK-Tony-Levene/dp/0764570234/ref=sr_1_2?ie=UTF8&s=books&qid=1227528847&sr=8-2

Bottom line, I think, is to have a strong idea of what your aims and goals are, and how much risk you're willing to take - but a general awareness of the strategies available to you is certainly going to help empower you IMO.

dunstonh

Ideally the rewards would be high and the risks low

Wouldnt we all like that.

My initial thought is to buy a property and rent it out and generate an income stream that way and hope that the property prices pick up in the next 5 years or so.

And thats going to happen. Whilst past performance is no indication of future returns, if you bought at the peak before the last house price crash then you could have taken up to 12 years to break even again. House prices are still falling at the moment and almost certainly have a lot more to go yet (10%-30% would not be a surprise). so, your 5 year timescale doesnt seem realistic at the moment. Although anything is possible.

Based on your current criteria, there are about 50,000 different options available to you so you are going to have to narrow those down a bit. Without knowing any details there really isnt any way for anyone to suggest things without listing all the options available.

jamesd

What tax wrappers is the money currently in? Cash and S&S ISAs? Pensions? Are you over 50 years old and willing to invest inside a pension? Are you a higher rate tax payer? A tax payer at all? What annual variation in capital value will you accept (bearing in mind that we've seen a 45% or so drop this year from pure equities), something that will affect the balance of your investments.

Do you already have ample pension provision?

What income do you need from this investment?