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What kind of investment would yield £20k p.a.?
NightNurse
Posts: 68 Forumite
Hello
My siblings and I inherited what I would consider a large sum of money and would like to invest it such that it yields us an annual income of £20,000. Before we speak to a broker (we need to determine a good broker to begin with) we want to educate ourselves on what is out there. Off the top of your head, what kinds of investments are likely to yield this amount? The total investment after deductions is circa £300k but if we split it amongst us we would have £60k each. Could we yield 20k each per annum?
Thanks
My siblings and I inherited what I would consider a large sum of money and would like to invest it such that it yields us an annual income of £20,000. Before we speak to a broker (we need to determine a good broker to begin with) we want to educate ourselves on what is out there. Off the top of your head, what kinds of investments are likely to yield this amount? The total investment after deductions is circa £300k but if we split it amongst us we would have £60k each. Could we yield 20k each per annum?
Thanks
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Comments
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I will leave this one to the experts, I could do with a regular return of 33% as well.'Just think for a moment what a prospect that is. A single market without barriers visible or invisible giving you direct and unhindered access to the purchasing power of over 300 million of the worlds wealthiest and most prosperous people' Margaret Thatcher0
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I'm guessing from your response that its overly optimistic then?0
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NightNurse wrote: »I'm guessing from your response that its overly optimistic then?
£20K income with £60K to invest?
Well at 6% in a bulding society it would get you £3.6K PA before tax.0 -
Unfortunately, I think so, unless you are willing to put your capital at extreme risk.'Just think for a moment what a prospect that is. A single market without barriers visible or invisible giving you direct and unhindered access to the purchasing power of over 300 million of the worlds wealthiest and most prosperous people' Margaret Thatcher0
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33% return...Nice!
what's the secret?
Save save save!!0 -
I'm no expert, but would say that sort of return is only achievable in high risk funds on the stock market. I have a couple that are achieving spectacular returns, but when things go wrong (as they did last week) then the falls are spectacular too.0
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OK, thanks for your replies. I'm new to this as you can probably tell.
We are not willing to invest in extremely risky ventures. We did think of property but I don't think its a good time for that right now.0 -
Its Not A Good Time For Property? Of Course It Is!!!!0
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A return of 5% on your capital is a good rule of thumb for low-medium risk investing. So 15k on the 300k total before tax: but there are plenty of ways of avoiding tax, starting with filling up your annual ISA allowance - 7k before the end of the tax year and 7k immediately after = 14k for a start.....Trying to keep it simple...
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