best safe investment for a monthly return

barberella2007

I have had 48K in a 5 year investment with the Halifax which has now come to an end. I don't want to re-invest with them I need to take a monthly income from this amount to live on. Can anyone suggest where I look to get the best return. I am an UK taxpayer. Thanks.

dunstonh

How safe is safe?

There are some monthly income investments that are paying 7.6% gross p.a. but have an element of investment risk to them (return of capital providing FTSE100 doesnt drop my more than 50% from current level by maturity for example). There are some lower risk versions that also pay closer to 6%.

Or are you wanting cash level safety where the rates are much lower but you end up replacing investment risk with inflation risk and shortfall risk?

Lokolo

Also just to add, is the amount to live on over X year or for rest of your life or what?

barberella2007

thank you for your responses. I had a 2 year guaranteed reserve from which I was receiving a monthly income. I wish to tie the 48K up again for a maximum of 2 years, in something safe, that will give me a monthly income until I reach retirement age. I am nearly 58 (female). I will be in receipt of a state pension at the age of 62. I don't want to invest in anything that compromises my capital. I am not currently working. I don't wish to put this money into a pension as I want to be able to access my money at all times. I would be very pleased to receive any suggestions.

agsnu

You have said both that you want to put it away for 2 years, and that you want to keep access to it at all times. Which is it to be?

glesgaguy_2

I'm in a similar situation, I took early retirement from self employment due to health reasons (age 61), I have a small personal pension but need to make the most of my 45k nest egg by recieving a monthly income, I have no debt so can afford to put this money away for 5 years or so, at the moment I have this money in a BOS 1 year deal deposit account paying 6% and is due to come to an end shortly when it will pay .5%

I've been looking at the Investec 5 year FTSE 100 income plan with .50% monthly income or Barclays Regular Income Bond at .62% monthly. The Barclays deal seem's the best to me.

I realise they are dependant on the FTSE not falling below 50% with regards return of capital but I am usure of the likelyhood of this happening, does this mean another stockmarket crash?

I just need a regular monthly income that won't fluctuate

Are there any better alternatives at present?
Thanks

barberella2007

Sorry to confuse you, I don't need to access the money for 2-3 years, just need the best monthly return. Am in same boat as the other respondent, glesgaguy, just abit younger!

Lokolo

The best you're going to do is to tier your money I believe.

Put X in 6 months fixed, Y in 1 year, Z in 2 year depending on when you need the money.

For example if you to spend the £48k over 2 years. So £2k a month do something like this:

Instant access account: £12k
6 months: £12k
1 year: 24k

Then when the 1 year is over, put £12k of it in a 6 month fixed account. Then £12k in instant acess, of which you withdraw £2k a month.

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If anyone can think of a better way...

barberella2007

Hi, thanks for that. I am not too hot on money matters so will make a cuppa (or maybe it should be a G&T) and get my head round what you are proposing. Are there any particular companies you have in mind that I should do this tiering system with? Many thanks for your input. Barberella

glesgaguy_2

Agreed, no doubt it's a good plan but it seems a bit complicated to me, not being a finacial wizard! plus I presume it means physically doing finacial transactions on certain dates which means you have to be around or capable of doing them.

I think Barbarella and myself just want advice for the best monthly return without too much risk on the capital

The Holy Grail in other words!!

Lokolo

Ok looking on moneysupermarket:

http://www.ingdirect.co.uk/savings/variable_rate/default.asp

12 months fixed 3%. Looks good. However after, will go to 0.5%. So you'd need to find something new then....

http://www.citibank.co.uk/personal/banking/saveinvest/saving/fsaver/fsaver.htm?merchant=citi

Another one. at 3.1% but most of its a bonus.