Monthly income from £50k investment?

ricll

theyre paying 3.11%/aer at the moment, so not very advantageous anyway

G_M

If you want to put your money in a savings account and ensure that you will always have an extremely competitive rate then I definitely reccomend the Investec High 5 account.

For other Investec pros and cons see here. The 6 month £50 bonus seems to have been extended so still available, though the free ipod option has gone. See here. Full details of High 5. PM me for any other info.

bendix

ricll wrote: »

theyre paying 3.11%/aer at the moment, so not very advantageous anyway

So on a 50k lump sum you're looking at a paltry £1520 a year, or less than £30 a week (before tax).

Excuse me if I dont get excited. That's not an extra income stream. It's barely pocket money.

Competitive my a**e

jon3001

bendix wrote: »

So on a 50k lump sum you're looking at a paltry £1520 a year, or less than £30 a week (before tax).

Excuse me if I dont get excited. That's not an extra income stream. It's barely pocket money.

Competitive my a**e

What are your suggestions?

SpinnerB

<<Snip Quote:
Originally Posted by bendix
So on a 50k lump sum you're looking at a paltry £1520 a year, or less than £30 a week (before tax).

Excuse me if I dont get excited. That's not an extra income stream. It's barely pocket money.

Competitive my a**e

What are your suggestions?

Snip >>

Yes I would also be very happy to hear of the safe place for 50k to get more than that paltry sum bendix

jamesd

What you'd do is a mixture of funds like:

30% corporate bonds
15% inflation-linked gilts (or NS&I index-linked outside an ISA)
35% equity income (like Invesco Perpetual Income)
10% global growth
5% emerging markets
5% cash (in a savings account to even out the money flows)

These would be mostly held in a stocks and shares ISA, as fast as the annual allowances let them be put in one.

The capital values would vary a bit from month to month but the income would be relatively stable and it should be possible to take 5% or so - 2,500 a year - from 50,000 and keep up with inflation.

The corporate bond and government bond (gilts) funds are there to provide pure income; they would be the first things purchased within the ISA due to favorable tax treatment. Equity income to provide income and some capital growth to try to fight inflation. Global growth and emerging markets to try to keep up with inflation without using too much of the capital.

The exact mixture would depend on the individual situation, income target and preferences. Savings accounts just aren't good enough to provide this sort of income level and still keep up with inflation, so some variation in capital value has to be accepted. You just arrange for it not to be too high. The mixture I gave above is for someone who doesn't get greatly upset about 10-20% capital value variations, knowing that over time they will just go back up again. That means they use more equities and have a greater chance of keeping up with or even growing faster than inflation.

Lokolo

are NS&I index linked tax free?

opinions4u

Lokolo wrote: »

are NS&I index linked tax free?

Yes they are

http://www.nsandi.com/products/ilsc/index.jsp

"With our inflation-beating savings, the value of your investment increases in line with inflation as measured by the Retail Prices Index (RPI) and earns guaranteed interest rates on top - with all your returns tax-free (which means that all returns are free of UK Income Tax and Capital Gains Tax). So you can be sure to keep ahead of rising prices."

Baldur

Lokolo wrote: »

are NS&I index linked tax free?

Yes they are - http://www.nsandi.com/products/ilsc/index.jsp

Lokolo

I wish I had some spare dosh to put some money into them... donations anyone?