Investing a lump sum to generate an income

atush

21Twinkle wrote: »

I thought that this was supposed to be a serious discussion ?

you asked why (ie your many ???s) so I answered?

It is you who is not serious when asking a question and not wanting the answer (ie the ? not the first?)

Not even a thanks for answering your Q

50Twuncle

http://cheviot.co.uk/

innovate

Looks like an overpriced IFA to me.

atush

you can concern with you advisor

???????????????????????????????????????????

Or you can consult an advisor (independent) who speaks your language so as to be able to understand fully the details and implications of any investment?

badger09

paulalbert1 wrote: »

Another appeal to email stephen.wilmot@ft.com with your experiences. He is running a story on disastrous student property investments in the Financial Times on Saturday, needs case studies. Please email or call 0207 775 6628

Even if this is a genuine request, this is not the place for it.
Reported as SPAM

atush

And given you copied it, I have had to report yours as spam too lol!

badger09

atush wrote: »

And given you copied it, I have had to report yours as spam too lol!

:rotfl::D :rotfl:

grizzly1911

johnnyredgate wrote: »

IFA has recommended longterm guaranteed investment bonds,

johnnyredgate wrote: »

the 3% of investment charge seems quite high to invest?

A relative of mind is being recommended to take up a long term insurance investment bond to generate a "reliable" return at fairly low risk. that is with a 3% fee which seems high to me too, in view of the amount involved for what is in effect a buy and leave product for the IFA.

gadgetmind wrote: »

Yes, they tend to do that.

My view is that the income generating Investment Trust recommendation was pretty solid. There is no more tax on dividend income for a basic rate tax payer and you can also sell enough each year to fund a S&S ISA so slowly get everything hidden from the tax man. The money in the S&S ISA can also be in ITs but you can also buy bonds and gilts in an ISA to balance the portfolio.

Note that unlike interest on cash in a savings account, the income from equities will tend to rise with (or even above) inflation.

I have asked the IFA for an alternative fund option with a view to B&B ISA switch route. Which would give greater flexibility, more transparency and potentially better returns providing the full income/growth was not taken each year.

The insurance investment bond return isn't guaranteed either so although they may smooth it, if it is smoothed at alow rate the added benefit is questionable.

johnnyredgate

grizzly1911 wrote: »

A relative of mind is being recommended to take up a long term insurance investment bond to generate a "reliable" return at fairly low risk. that is with a 3% fee which seems high to me too, in view of the amount involved for what is in effect a buy and leave product for the IFA.


The insurance investment bond return isn't guaranteed either so although they may smooth it, if it is smoothed at alow rate the added benefit is questionable.

Thank you for your reply grizzly, it is difficult to know what is considered a reasonable charge from an IFA at the moment, I have only spoken to 2 so far, but both were quoting around 3% of capital investment, and from .5 - 1% annual fee. To me this would seem to wipe out most of any gain in year 1 at least, so would definitely be needing to look at long term investment with income drawdown. You agree that 3% is high for this type of insurance investment bond too, would be interested if anyone has this type of bond through an ifa with a set up fee, or whether the bonds can be accessed without needing to go through an ifa?

My understanding was that is was a secure investment so also a bit disconcerting to read that it is not.
Feel like I am going round in circles!! Whilst I am naive to investing and concerned about making the wrong decisions I do feel a bit uncomfortable about leaving decisions to an ifa without doing my own research also, and if there are relatively safe options that can be accessed with out the need for an ifa, perhaps investigating those further.

bigadaj

Interesting that percentage fees are being quoted when Rdr would require a fixed fee.

Ultimately you always need to do your own research and due diligence whether you use an ifa or not as that is the only thin hat will give you some comfort in the decision being appropriate for you.