I’m 23 – how can I make GBP83,000 last for the rest of my life?

marywooyeah

I'd say you could make that last quite easily! how many ISA's is a person allowed?
the trouble with stocks and shares is that they can go up and down, I wouldnt want to see you lose lots of money on them.
might be a good idea to invest in property and rent them out, while the house prices are low you could buy a couple of flats.

good luck

Loughton_Monkey

I would suggest this is a 'philosophical' question. It is not much of a 'financial' question.

Despite your most detailed post, the 'facts' are these:

1. You have chosen to adopt a lifestyle, in a foreign country, in which your 'family economy' will be (in very round figures) Income £4,800 pa, Expenditure £4,200 pa.

2. For whatever reason, you happen to have a bag of financial assets worth just over 17 times your annual income.

Then the 'thrust' of your question is about some form of optimising your investments over the next 40/60 years! [Which explains why many of the answers address that too.]

You must realise that there is no 'magic' solution here; as in "here's a sure-fire way to get 7% income for life from your money.....", or "put it in X, Y and Z, and it will double in 8 years....". As we all know, currently you will get around 3% on savings (more if you fix) and an uncertain % on investments - but probably between 5% and 7% on average if they are well spread (as they should be).

But until you have worked out a very clear strategy for what you are trying to achieve, I suspect all answers will turn out to be just a bit of 'noise'. Before bothering about the 'detail' you must make much more strategic decisions. You must consider all your options:

1. Keep it invested, not touching it, so that it will provide my pension when I retire in 40 years.

2. Invest it to provide a steady income over the next 40+ years to boost income from earnings.

3. Keep it invested for the purpose of dipping into it for future one-off lifestyle events such as childrens' education/marriage, house purchase, emergencies, occasional 'luxuries'.......

4. Keep it as a contingency against possible emigration back to UK to resume career and life...

5. Any mixture of the above.....

Until you clarify this, you cannot hope to go to the next stage in a strategy, which would have to include consideration of (a) Currency, (b) Tax wrappers, (c) Risk profile, (d) Income v. Growth......

So any advice now about putting it in pork belly futures or NewsCorp Shares is about as relevant as giving a confused 16-year-old careers advice: in the form of "Always wear a striped tie to interviews rather than a plain one".

sabretoothtigger

C_Mababejive wrote: »

The trouble with buying into individual shares is that you have keep checking them and have an exit strategy.

Yep shares have to be watched really. Buffet said something on that


Put more into this one (over time) :

HSBC FTSE 250 Index Acc
and the pacific Asian funds as you live there you are better hedged then most



You could buy an old laptop for 40 quid even, money definitely be made to last with some effort even while spending it

get some rpi certs from po

missile

how can I make GBP83,000 last for the rest of my life?

spend not more than £1,000 per year :rotfl:

Gordias

very healthy person who doesn’t indulge in any vices

If you are not into booze, drugs, smoking, fast cars, motorbikes or ladies of a certain persuasion then living off £4,000 a year might be a doddle.

IronWolf

blinko wrote: »

Nice work but I have to disagree on Tesco.

If not debt how should expansion be funded ? especially with money so cheap ?

I would disagree on them as an investment, them seem to be stuck in a trading range, plus there yield isn’t anything to be excited about.

Why not shell or BP

I think given the timeframe you are going to have to work harder than to just put the money into shares and leave it. Unit trusts may be better if you want to leave the share picking to someone else

Maybe I didn't phrase it properly, what I meant is that you shouldn't take on debt that is unmanageble, relying on your expansion to allow you to safely cover the interest. I have a low tolerance to risk which is why I look for interest cover of about 5x or more, depends on the business though.

There are alternate ways to expand, one of Tescos mall strategies is to sell off existing malls, renting the stores back they already occupy and use the money to build another mall. They then cherry pick the best location for the Tesco store, rent out the rest, and once its up and running, sell that mall for a big profit and repeat the process.

My investment strategy doesn't take any notice of share price action, other than considering what price is it for sale for right now, dividend yield is 3.5% which isn't terrible, and Im happy for them to reinvest the rest in the company because they've shown they can put it to good use.

I haven't really looked at BP or Shell before, although I was tempted to go into BP during the crisis. The price of oil is a big factor in their profits though and I think I need a better understanding of that market before Im comfortable analysing their income and trying to value the company.