Monthly Income

gozomark

dunstonh wrote: »

How long are you for the income to be provided?

5 ft 10 inches

jamesd

stechr, the NS&I index-linked certificates should be your first NS&I choice since they cover inflation plus a little extra.

You seem to be paying minimal attention to the risk of inflation and the unpleasant effect that has on savings over the years. Do you really have no investments at all outside the pension? Why?

stechr

I guess I should be speaking to an FA but appreciate any help.
I think I am focused more on cash - Recommendation (I dont mind risk but needs to be balanced.)
Have a technology stocks & shares ISA I forgot about. The £7k went down to some rubbish amount but has been recovering in last 12 months
Thanks

jamesd

Do use unbiased.co.uk to find an IFA rather than just any FA. The difference is that plain FAs that often work for banks are limited in what products they can recommend and have lower guarantees if they do make a mistake in matching investments to the risk level you say you want.

You should be able to get 6% tax free from S&S ISA investing with 20% or so capital value variation. Up and down variation but level or increasing over the longer term is what should be expected from a good broad mixture of investments.

Since you're a higher rate tax payer you also get very good tax gains from making pension contributions. No need to buy an annuity these days either, you can just take out 25% tax free then take an ongoing income from investments if you prefer. The 75% remains fully inheritable by a spouse or inheritable by others after a tax charge once you've started taking benefits from it.

dunstonh

Have a technology stocks & shares ISA I forgot about. The £7k went down to some rubbish amount but has been recovering in last 12 months

If you take a basic 1-10 risk scale (1 being cash) , thats pretty much at the 10 end of the scale. There is a lot in between!

Going forward you have to remember that one thing about the future you do know is that you dont know what is going to happen. Inflation, interest rates, investment returns etc are all impossible to guess long term. So, you hedge your bets by not putting all your eggs in any one asset class/investment.