investing for income

shiredeon

hi, i am retiring to france in a couple of years when i've finished the renovation of my property there, i need to live of the proceeds of my uk house hopefully 500k, any ideas of the best vehicle to invest to get income, i have a partner who could share the tax burden if required, i will be about 55 when i go,
many thanks.

dunstonh

Probably best to wait until you move to France and then look at the options.

shiredeon

i know what you mean, i just wondered what the options were today, would i have to spread it around and what sort of income could i expect. i realise that i will probably eat into the capital as i doubt that 500k is enough to live on the interest alone, are there any simple ways of investing in one place and drawing down, i may leave uk as soon as next year if things work out for me, i really don't want to spend the rest of my life juggling money to make ends meet.

missile

There are some investments (like ISAs) available only to UK residents.

It depends entirely on what income you require, your attitude to risk? In simple terms 500K would generate 25K @ 5% which you might be able to achieve at very low risk. One thing that is rarely discussed is how long do you expect to live? There are no pockets in a shroud

You ought to read Martin's advice on investment and the zillion other posts on "where do I invest £X"

shiredeon

longevity is a tricky one, both my grandparents made a hundred, i'm not afraid of risk but having run a business for 25 years i really don't want to be continually monitoring things especially when i'm senile, the reason i'm packing it in is i can't take the hassle anymore and just want a simple life if such a thing is possible

dunstonh

When investing, you have about 15,000 options in the UK. You then have around 10-13 tax wrappers to choose from depending on your tax position and future goals. £500k isnt the sort of amount you should be coming to a website for advice for. The sort of tax wrappers that would be suitable for someone with 10k-50k are not going to be the ones suitable for 500k. There are not many personal individuals here with experience of investing 500k so the responses are not going to be likely to meet your goals.

shiredeon

i suppose i could purchase an anuity but i doubt if it would be better than just investing the funds to get interest, and there's nothing left when i die.

cheerfulcat

There is some discussion here about investing for income ( including some reasonably large sums ). Also here . This board might also be of interest.

Whether you DIY or take advice from an IFA, you will have to look at your investments from time to time, unless you buy an annuity ( not really an option right now, anyway ). It is a good idea to spread your investments around a bit, too. There are various financial products available; you will have to decide for yourself whether the expense involved is worth it. If you don't really want to take a hands-on approach such products may be suitable for you.

You will almost certainly have to take tax advice in France; it wouldn't hurt to familiarise yourself with any financial products available there at the same time. It is worth noting that France has a wealth tax, and also that French law does not, AIUI, recognise trusts, so tax planning will be quite important.

HTH

Cheerfulcat

Edit: If you do take advice, make sure it's from an advisor based in France...

brodev

There is another point not mentioned before. As you are retiring to France, your income will be required in Euros. Having a £ based portfolio or anuity would make you open to currency fluctuations. I agree with dustonh that with your set of circumstances you need professional advice. You could get an idea of income etc. from online IFAs like https://www.bestinvest.co.uk/ or https://www.hargreaveslansdown.co.uk/ . Enjoy your retirement in France

heppy23

Have you looked into letting your UK home? Would that give enough income for you?

shiredeon

thanks for all your good tips, i had thought about renting my uk home, the hard bit is keeping it let in my experience, looks like an easy life will still have it's hassles, cheers.