lump sum investment

kirkbyj

Hi
I've been offered a lump sum of around £23.000 as a apy out.

Have you any advice as to how to best invest this and would it bring in a monthly income?

Cheers

Weymouth_Man

I Think Carefully is the right word, have a look at this link
http://www.moneysavingexpert.com/savings

dunstonh

He said invest not save. That link is for savings options.

Kirkbyj, with around 20,000 options available, there is certainly enough choice for you. However, it will take more information than you have given to narrow down the options.

kirkbyj

Indeed I would like to invest and I could tie it up for five years or so.
A monthly income would be great if possible.

Also am I right in assuming I wiould have to pay tax on any interest and on the lump sum ??

dunstonh

Also am I right in assuming I wiould have to pay tax on any interest and on the lump sum ??

Depends on the tax wrapper used. Some are tax free (ISAs), others have tax liaiblity for income and capital gains, some have tax paid with no further liability (particularly useful for higher rate tax payers) and some can be placed offshore to allow the benefits of gross roll up.

Nowadays its possible to invest in exactly the same funds across the tax wrappers at much the same cost so what you really should be doing is looking at how and where you want to invest, then decide the tax wrapper(s) appropriate afterwards.