Investments to provide £1200pm income?

blinko

philng wrote: »

I originally set up this thread just over 18 months ago. I have been lucky with my share investments particularly a large holding in LTSB meaning our portfolio value has increased from £360K to £480K of which £155k is LTSB shares obviously paying currently no dividends.
I am aged 48 & wife 54 & have a guaranteed final salary pension at age 60 currently worth approx £19k per year. Wife has a number of money purchase pensions valued approx £60000 in value PLUS an old final salary pension approx £6k pa index linked.
We are due to receive another approx £40k inheritance this year.
Cant help thinking why we are working so hard and long hours and not enjoying ourself.
How much income could I realistically obtain from the above with some protection against inflation? Bearing in mind I will receive the above final salary pension in just 12 years at age 60.

Buddy I hate to say this but you have so much money and so little idea.

I think you are about ready to learn more about investing and capital allocation. BUT the bad news is that you are going to have to start being more pro-active!!!

Here is a start trustnet.com there is already several good pieces of advice in this thread I recommend you re-read and use those threads as a starting point.

atush

Lots here you aren't telling us.

Did you get made redundant? Are you working still? Same job, or new job? Income?

If you aren't currently working you are very young still so surely you have time to read and learn about investing. Tim Hale? Motley Fool? Moneyvator?

I would start selling your LTSB shares using your capital gains tax allowance. If you still want to hold some, bed and ISA them, but I'd be looking for dividend income of some sort.

BLB53

Cant help thinking why we are working so hard and long hours and not enjoying ourself.
How much income could I realistically obtain from the above with some protection against inflation?

Taking a ball park figure of say £500K, I would think a realistic figure for sustainable income would be around £20 - 23K invested in equities to rise with inflation.

My personal choice would be investment trusts or higher yielding shares.

There was a couple of articles recently on www.retirementinvestingtoday.com about income from investment trusts and a separate one for shares.

Also 'Slow & Steady Steps..' ebook explains a bit more detail on income from equities.

Also on the Monevator website there are hyp share articles.

Good luck with the early retirement plans!

philng

Still working for same company for last 29 years. I have a number of different share holdings not just LTSB from which I am receiving dividends.
Don't want to sell LTSB as have been through the downs & think they have further to go with maybe a return to DIVS next year.
Unsure what your comment means as I feel I have done well with a mix of investments over the last 18 months after all a 50% gain isn't to be sniffed at.
My question was what income I could reasonably be able to receive on this sort of amount?

blinko

philng wrote: »

Still working for same company for last 29 years. I have a number of different share holdings not just LTSB from which I am receiving dividends.
Don't want to sell LTSB as have been through the downs & think they have further to go with maybe a return to DIVS next year.
Unsure what your comment means as I feel I have done well with a mix of investments over the last 18 months after all a 50% gain isn't to be sniffed at.
My question was what income I could reasonably be able to receive on this sort of amount?

you have done well. agreed!

BUT

You do not seem to be able to grasp the idea of capital allocation, what kind of return do you seek? what kind of lifestyle do you want to live, what are your plans for the future? do you have children? do you have an accoutant?

You need to think this through properly and put some stronger plans in place, at the moment It does not appear that you have a firm grasp of your financial position and desires

atush

philng wrote: »

Still working for same company for last 29 years. I have a number of different share holdings not just LTSB from which I am receiving dividends.
Don't want to sell LTSB as have been through the downs & think they have further to go with maybe a return to DIVS next year.

Sell enough to use your capital gains via a Bed and ISA arrangements. you still hold the shares, but will have taken some of your gains out of a taxed environment

Unsure what your comment means as I feel I have done well with a mix of investments over the last 18 months after all a 50% gain isn't to be sniffed at.
My question was what income I could reasonably be able to receive on this sort of amount?

you could base your income on BLB posts, or the previous ones given to you last year. But with a higher initial amount? The real question is, do you want to leave your capital untouched and live solely off the income or will you allow for a possibility of eating into the capital. I certainly think you can assume 4% w/o eating into your capital.

Will just you be leaving work? Or your OH too? Will either of you work at all (even part time?)

You are very young to sit around and do nothing esp if your OH keeps working (this could cause resentment). but there is of course the rent your house out and have a gap year thing, then go back to working part time. This would work esp well if your OH could keep her job but take a leave of absence.

kidmugsy

Working part time could
(i) Take much of the stress out of life,
(ii) automatically keep you paying national insurance contributions towards your eventual State Pension,
(iii) keep you still in the labour market so that it would be easier to return to full time work should you ever want to.

Why not target the income tax personal allowance as an annual part-time income?

marathonic

About 35% of your equity investments in a single share..... anyone will tell you that's madness.

I can tell you now that I know of many people who would be considered highly intelligent (two solicitors and a dentist to name a few) who lost the majority of their pension funds in AIB and Bank of Ireland in the Republic of Ireland.

Opinions on AIB and BOI in the early part of the century were that they were 'safe as banks' Look how that turned out.

My opinion is that, if your projected income is high enough that you don't need to take such a risk, why take it in the first place. If it is low enough that you do need to take such a risk, what will you do if things don't play out as expected?