Half a million pounds to invest, need to live off the interest. What's best?

JDinho

Edo wrote: »

Now at days, you can not longer put your money into a saving account and live on interest rate, inflation and taxes kill any substantiol yield.
You have to start putting it in low risk funds. Putting the money in a fund, you lower your risk of investment, because the investment is invested in more than one market (however it depends in what fund you invest). Since the capital that will be invested, is high, you should have a personal manager, managing your investment.
Let me know if you need furhter help..... I help people for a living.

Interested to hear how you help people?

baby_boomer

Over a six month to one year period there is no need for any investment manager or financial adviser.

Your mum just wants a decent savings account. Try searching on www.moneyfacts.co.uk/savings and you will find what you are looking for.

dunstonh

1 year is not enough to invest so savings would be the logical option.

amcluesent

A mate of mine has just tipped gold as ready to break out above $700/ounce. I reckon £500,000 should get you 48.4Kg of the metal to sit glittering on the dining table. That would look fine!

benood

Obviously in pedantic mode tonight but after making inquiries, or should (that be enquiries;) ) I conclude adviser can also be spelt as advisor, they're interchangeable, take your pick.

About the £500,000 if she will really need it all in six months I would keep it simple and go for the best monthly interest bank account option.

TBeckett100

stiffnuts69 wrote: »

You are a complete idiot for picking up on spelling mistakes, I hate people like you with a passion.

Shame you cant spell either.

!!!!

hmm my bad spelling or my truly magic fund picking

Zinger549

TBeckett100 wrote: »

hmm my bad spelling or my truly magic fund picking

I think she was referring to PBA not you.

jamesd

Harridan, high interest savings accounts are paying 5.75 to a bit over 6% before tax. Those will provide 1900-2000 a month in after tax income and do the job for her.

If she finds that she likes renting and wants to continue that she should seek an IFA for investment advice, since she'll then need to ensure that she gets a return high enough to both live on and grow the capital at a rate above inflation. Not problematic to do that given the amount of capital she has.

ellat257

Get some advice from an IFA, or several. That much is too much for most people to mess with. Maybe an annuity or such would be better. Limiting IHT has to be a priority. When my father died I ended up paying 35% on some of his investments because they weren't written in trust. (His only mistake I think.) But everything else was fine because he planned in detail, although he was only 66 when he died. His father is now 98! Good luck!

ashcarrot

Under ICESave she'd get ~1950 monthly.