Monthly Income

stephenadarglas

Hi all

Some ideas where I can get a decent monthly income on a lump sum of £20,000.

Thanking you

Steve LL

MPH80

Define 'decent'.

I make the monthly income on £20k at 5% about £60.

So - if you're wanting more than £100/month - you'll need a return of at least 8%.

So you'll need to be more specific about your hopes for your monthly income.

M.

stephenadarglas

Hi M

Thanks for replying. No specifics in mind, just the best place for an income (%). Lump sum must be risk free! Could be bonds, cash account etc. I'm quite flexible so long as the lump sum is safe.

Steve LL

dunstonh

ISAs, Unit Trusts, Investment Bonds, Pensions are all appropriate investment tax wrapper options to suit your goals.

However, based on what you have said, it cannot be limited any more than that. Do you want to provide any more information?

dunstonh

At the point I posted there was no comment on risk.

stephenadarglas

Thanks for the reply Dunstonh

There must be no risk and the best monthly income

I like the idea of an investment bond - any companies you recommend?

Steve

cheerfulcat

Investment bonds are not no-risk, though...

stephenadarglas

Thanks cheeerful

any suggestions for me?

dunstonh

No risk and income leaves you looking at a savings account only. Some investment options do carry certain capital security but usually on specific events. There is one long term investment option with a lock-in on increases upto 10% p.a. which is designed heavily for retirement income but you cannot call it risk free as you cant just run down the road the passbook and withdraw the money.

Risk is not an on or off button. It is a sliding scale. Some very low risk investments exist which do not offer capital guarantees but invest in areas of low volatility. You need to decide whether it is absolutely no risk or perhaps a little risk could be done.

cheerfulcat

any suggestions for me?

The best fixed rate deposit account you can find. Anything else involves investment risk. Of course with cash you have inflation risk, so if you are taking all of the interest as income, your capital value will be eroded over time...but perhaps that doesn't matter? How much income do you need?