Semi Retirement - Investing

JeffAllan

At age 49 following redundancy I suddenly find myself in the lucky position of having no mortgage, savings of c£220000 to live on, and an index linked pension from age 60. The plan is to live in semi retirement for 11 years taking occaisonal jobs to pay for lifes luxuries. How do I best invest for an income for 11 years ?

I calculate that with compound interest and investment income I could draw down c£22,000 per year. I could theoretically afford to have no money left by age 60 when my pension with a lump sum kicks in but the effect of inflation could present problems for my buying power during my later 50s. Presumably tax is not a big issue as I will be living mainly off my capital. I already have c£25000 in funds ISAs c£20000 in savings ISAs.

Any advice gratefully recieved.

Lokolo

If you are willing you could put it in some income paying investments? You already have a Funds ISAs, so you could buy funds outside the ISA.

You will also pay tax on interest you get from any money outside the ISA if it's over your personal allowance.

coxwell

I must be doing something wrong, how can you draw down 10%?

dc

cheerfulcat

coxwell wrote: »

I must be doing something wrong, how can you draw down 10%?

dc

OP is planning to draw down capital, as I read it.

JeffAllan, there are some ideas for investing for income on the Motley Fool board of that name, here.

JeffAllan

Thanks Guys

£20k pa is not a percentage based return, but simple arithmatic of my stash being spent over 11 years, (plus interest and investment returns)

JeffAllan

Just to report back.

I've done some research with simple spreadsheets and also using MS Money Manager Lifetime Planner, and it works !:j:beer::D:cool::eek: