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£400K What is realistic Income?
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Re the 85k limit to avoid the risk of the bank going bust, is the same risk present if one invests say 200k in a passive tracker via a platform such as H & L?
I am wondering what do rich investors with millions do. Surely they do not want 50+ different bank account to manage.0 -
The FSCS compensation limit for investments is £50K, and can only be called upon if the firm who advised you is in default.0
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The FSCS compensation limit for investments is £50K, and can only be called upon if the firm who advised you is in default.
So someone investing 300k in shares with three different providers ie IFAs or platforms such as H & L is more at risk than someone placing the money in three different bank accounts.0 -
So someone investing 300k in shares with three different providers ie IFAs or platforms such as H & L is more at risk than someone placing the money in three different bank accounts.
yes, shares are much more volatile than deposits (banks).
To answer your original question, of all the things you've said the most 'poignant' is that you don't want to risk the capital.
This become the most overriding factor when recommending a product.
As already mentioned, nothing is cast iron safe. But the most risk-free (while still offering a semi-decent return) would be a capital protected structured deposit.
There aren't many that offer regular income but a couple that might suit you are:
Gilliat Income builder plus (currently pays 2% per quarter)
Meteor FTSE Income Deposit (currently pays 6% annually)
These are based on performance of the FTSE100, basically if the FTSE is moving up you'll receive the payments - at the end of the term you receive your money back.
To add further guarantees to this money, you need to split them into £85k junks to ensure 100% protection from the compensation scheme. If you're married you can invest jointly and the protection doubles to £170k.
This compensation is per INSTITUTION so if the above 2 mentioned are with the same bank (and I think they are both RBS) this isn't this best combo... but there are other similar products from other institutions, I think Barclays have one.
It's also worth using up your ISA allowances if you haven't already.0 -
Glen_Clark wrote: »Where can you get that?So someone investing 300k in shares with three different providers ie IFAs or platforms such as H & L is more at risk than someone placing the money in three different bank accounts.
The risk with investments isn't the lower FSCS limit, it's that the values of the investments vary and there isn't FSCS protection for varying investment value.0 -
Re the 85k limit to avoid the risk of the bank going bust, is the same risk present if one invests say 200k in a passive tracker via a platform such as H & L?
I am wondering what do rich investors with millions do. Surely they do not want 50+ different bank account to manage.
We put £398k in HSBC as investments (Plus currently £2400 in a Reg Saver)
£46k in Lloyds (2.7% Tracker in cash)
£78k in Nationwide (3.01% something or other)
OH has everything with HSBC.💙💛 💔0 -
Sam_Malone wrote: »I am 49 years old and am employed and have a pension.
When do you want to retire and will your pension cover your needs at this time?I would like to invest the money and take a monthly income from it.
Do you intend to start taking this income now? Why?What (in your opinion) would you expect to be a realistic return per month or annum without reducing the capital.
If it's invested in a balanced portfolio of equities, bonds, commercial property, etc., then 4% pa is generally sustainable for 30+ years. If you're prepared to "dial down" this income during bad times, you might be able to get away with 5% at other times.
If the money is invested in "safe" cash-like assets, then you'll be pressed to preserve the real value of the capital even if taking zero annual income.
You really do need to long at your life plans, current needs versus retirement needs, and also tax position. (The latter is important as you might be better targeting dividend income and capital gains.)I am not a financial adviser and neither do I play one on television. I might occasionally give bad advice but at least it's free.
Like all religions, the Faith of the Invisible Pink Unicorns is based upon both logic and faith. We have faith that they are pink; we logically know that they are invisible because we can't see them.0 -
no risk = no return.
However, I think with 400k you could make up to 32k per year if you put them in reasonably safe corporate bonds like Barclays.0 -
Sam_Malone wrote: »I would like to compare any answers here with what the IFA will say.
Quite right.
Your main task right now is to educate yourself. Read these forums, read the books recommended here by several posters. One that comes up again and again is The Financial Times Guide to Investing.
Do your research BEFORE you meet your IFA.
BTW, make sure you are meeting an INDEPENDENT Financial Advisor, not one provided by your bank.0 -
i'm not sure there is anything close to an INDEPENDENT Financial Advisor these days - most have an agenda so take multiple opinions from a couple of them and bounce your ideas off them and see what they say.0
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