How much return can u get from £100K?

flops

I'm in the very fortunate position of inheriting approx £100K soon. I need to know what approx amount I can expect to get per month from this after tax?
Obviously I will go and see a financial advisor when I am in the situation to actually invest this money.

The reason I need to know this is my husband is moving out soon and i only work part time so will need to supplement my income to support myself and son.

Thanks

Aegis

flops wrote: »

I'm in the very fortunate position of inheriting approx £100K soon. I need to know what approx amount I can expect to get per month from this after tax?
Obviously I will go and see a financial advisor when I am in the situation to actually invest this money.

The reason I need to know this is my husband is moving out soon and i only work part time so will need to supplement my income to support myself and son.

Thanks

We're currently quoting approximately 5% yields (pre tax) for clients looking to go pretty much entirely into fixed interest funds. It's quite possible that this will result in little to no capital growth, possibly even losing value if you get a run of bad luck.

With this amount an IFA is well and truly justified. Don't go to your bank for advice under any circumstances. Go to https://www.unbiased.co.uk and find a local adviser who can assess your whole financial situation to make sure that you have enough liquidity while retaining the possibility of growing capital and some income.

Best of luck!

flops

Sorry I don't understand this. Does this mean I can expect £5000 per year before tax?

Aegis

flops wrote: »

Sorry I don't understand this. Does this mean I can expect £5000 per year before tax?

That's what a 5% yield would get you. There's no guarantee that you'll be able to get that ongoing, but it's what we're looking for right now with some of our clients.

Rollinghome

flops wrote: »

Sorry I don't understand this. Does this mean I can expect £5000 per year before tax?

On that basis afraid so, and you might also end up with less capital than you started with. That's because if you use that type of fund for £100K you'll have to pay around £1000-£1500 a year which is split between the fund manager and the IFA. You may also have to pay a front-end fee.

There's a review comparing the different sorts of financial advice available at: http://www.guardian.co.uk/money/2009/jun/21/financial-advisers-reviewed

EdInvestor

And make sure you steer well clear of investment bonds.Advisers will claim they pay 5% tax free 'income' but in fact this money comes from the capital.If you want to pay yourself £5k tax free a year from your capital, you can do it yourself!
,
Any adviser should start out by earmarking £10,200 for a stocks and shares ISA.If this was invested in shares or funds paying a dividend, you could expect 4-5% tax free.

For capital secure savings, 2-3% is the best at present.

ses6jwg

As said, If you look carefully, you can find a few FTSE 350 companies paying around 6% dividends.

IG Group, UMECO, Vodafone, Cineworld are a few.

Some good prospects of capital growth there as well.

boomerangs

flops wrote: »

I'm in the very fortunate position of inheriting approx £100K soon. I need to know what approx amount I can expect to get per month from this after tax?
Obviously I will go and see a financial advisor when I am in the situation to actually invest this money.

The reason I need to know this is my husband is moving out soon and i only work part time so will need to supplement my income to support myself and son.

Thanks

I'd buy some FTSE 100 shares with high yields. Alot of the big constituents e.g. oil companies pay more than 5% per year in dividends. And that's after tax.

bendix

I don't want to be rude, but reading between the lines of the OP, I don't think she is the type of investor who either understands or wants to be in shares or bonds.

I suspect she is asking more about deposit accounts.

Giving advice about buying FTSE shares with high yields and 5% in dividends is providing an answer to a question that wasn't asked.

dunstonh

And make sure you steer well clear of investment bonds.Advisers will claim they pay 5% tax free 'income' but in fact this money comes from the capital.If you want to pay yourself £5k tax free a year from your capital, you can do it yourself!

On a 100k, an investment bond can be far more cost efficient than unit trusts. If you are using fixed interest sector investments within it then you are not going to get hit by the tax differences.

whiteflag_3

yet again with the exception of Bendix, guidance is being given without any real information being given by the OP.

We dont know age (although ED seems to know she is over 50 already) current income and tax position, what debts if any exist, investment time horizon, investment knowledge ,experience and attitude to risk etc.

Flops hopefully you can find a good financial adviser that can guide you without it costing you the earth.