£40,000 to invest to get a income rather than dole

almond

hi - not sure if I should be posting this here? my partner is getting paid off soon after 26years. he is 47years old and thinks he will find it hard to get another job so this is the question- he has a house with his former partner and it will have to be sold, so he should walk away with £40,000 if he invests
it was type of return will he get and any ideas where he should invest
I am hoping this might bring in some type of income since he does'nt want to sign on the dole and thought a part time job would top the money up.
please help advice is needed
thanks

fairenoughclough

Try to keep the house, rent it out and split between your partner and his ex.

Interest on £40000 will be around £2000 per year before tax.

almond

I would rather he got rid of the house since she has been living in it for the past four years since the split and he has paid all the mortgage since she
says she can't afford it. (they have no children and are'nt married) he is just a lovely DAFT man. So you don't think by investing it he would make anytype of income? I will have to think of something else - thanks for advise

cheerfulcat

Your expected return from a deposit account will be around 5% before tax.

You can invest for income but it takes a little work and research. If you were investing in shares for dividend income you could average around 6% ; if you are basic rate taxpayers there is no more tax to pay. Here are some articles to start you off -

http://business.timesonline.co.uk/article/0,,8215-1004380,00.html

http://www.incademy.com/courses/First-principles-of-investing/Fixed-income-products/8/1003/10002

http://www.comdirect.co.uk/services/factsheets/download/investincome.pdf

http://www.halifax.co.uk/investments/guide_investing.shtml

HTH

Cheerfulcat