Investment for Monthly Income

jay-cee_3

Could anybody advise me, or point me in the right direction to locate the best current providers of a monthly income from a one off investment.
I need to invest some savings to supplement my pension

Regards

Jay

Lansdowne

Here's an article I saw about corporate bonds/bond funds, if that's what you have in mind. It goes into the risks and benefits.
http://www.independent.co.uk/money/invest-save/corporate-bonds-the-only-hot-story-in-town-1299060.html

EdInvestor

Are you talking about a savings account paying monthly interest or a risk based investment?

jay-cee_3

Thanks for your prompt reply, as you can guess I'm a bit of a novice.
I guess <a savings account paying monthly interest> My Financial Adviser suggested a product by Scottish Equitable International '5 for life' which would return an income of 5% But I'm a bit confused because reading the literature part of the monthly income is tax free draw down of capital which I assume means my initial investment is being eroded.

Jay

dunstonh

which I assume means my initial investment is being eroded.

The underlying investments aim to provide growth and income (reinvested) to cover the withdrawals. The withdrawals are not natural income which is why they are not taxed as income directly.

Like most investments, there is a risk element.

ShowMeMoney

The Legal & General High Income Fund within an ISA looks attractive, even though it represents a greater risk! If linked with Quidco you get £85 Cashback..!!

dunstonh

ShowMeMoney wrote: »

The Legal & General High Income Fund within an ISA looks attractive, even though it represents a greater risk! If linked with Quidco you get £85 Cashback..!!

Anyone making an investment selection based on a paltry £85 cashback needs their head checking! Fine if its £50pm regular but not lump sum investing.

whiteflag_3

jay-cee wrote: »

reading the literature part of the monthly income is tax free draw down of capital which I assume means my initial investment is being eroded.

Jay

Jay, does it matter to you if your capital is being eroded , if you know the 5% income will be paid as long as you live?.

Its not for everybody, but ( in my opinion)5 for life is a great product.

whiteflag_3

dunstonh wrote: »

.

Like most investments, there is a risk element.

Whats the risk ? YOU still get your income even if the capital runs out

ShowMeMoney

dunstonh wrote: »

Anyone making an investment selection based on a paltry £85 cashback needs their head checking! Fine if its £50pm regular but not lump sum investing.

Absolutely! As a novice first timer, drip-feeding an ISA investment on a monthly basis, is an incentive! We not talking about lump sums, are we?

Aegis

ShowMeMoney wrote: »

Absolutely! As a novice first timer, drip-feeding an ISA investment on a monthly basis, is an incentive! We not talking about lump sums, are we?

Well, yes, we are. The first post clearly says that the OP is looking for a monthly income from a lump sum investment.