Savings, can anyone help

vivanco

My partner and I are in our 40's and want to move abroad (Europe) and have £250,000 to invest. We would like to earn enough in interest each year so that we have no reason to worry or work. We will have no debts or mortgage and enough cash to see us through the first year. I have spoken to an HSBC. FA all he could offer was 5% Net. Any guidance would be a big help.

cheerfulcat

That is a very small amount of capital to retire on, considering that you need to make it last for 40 years or so. Assuming you take only the natural income from this capital you are looking at ~£12,000/year; could you live on that?

vivanco

Hi cheerfulcat

I think we can live on £12,000 approx. But I was wondering if we could get more if it was in a 3 or 5 year plan or someone has mentioned offshore

Thanks

tom188

To make the most of your money you need to consider investments as well as cash. I suggest you visit an IFA or look into the options yourself.

DO NOT GET FINANCIAL ADVICE FROM A BANK.

cheerfulcat

Hi, vivanco,

But I was wondering if we could get more if it was in a 3 or 5 year plan or someone has mentioned offshore

I would avoid any sort of financial " package " that ties your money up for any length of time. You need to think about investing the money in a flexible way so that you can get hold of cash if you need to ( bearing in mind that using capital for living expenses means that your remaining capital produces less income...) And by investing I mean equities, either directly held or in collective investments such as unit trusts and investment trusts.

You could have a look at a few of the Motley Fool boards concerned with generating an income from investments -

High Yield Portfolio
Retirement Investing
Investing for Income

There is a very useful book, The Independent Pensioner, which deals with the same subject in some detail.

How useful offshore investment is depends on the tax regime in the country you live in. This is something you'll need to investigate more closely.