84 year old with at least £150.000 to invest.

flowerpot59

£150.000 for low risk investment. Would like something that will give at least £6000 per annum but, which pays out monthly. Has anyone got ideas please?

le_loup

4% for low risk? Unlikely.

vectistim

What's the definition of 'low risk' - guarantee the payments, guarantee the capital, both?

I would _guess_ about £40-50,000 on a purchased annuity at that age would probably provide the income, whilst that capital would then be gone, the income would be guaranteed, and that might leave more flexibility as to what to do with the rest of the money.

An alternative approach would be to have say three year's worth of income in cash accounts - 18,000 and take 'income' from that and top it up via investments - probably via growth rather than income funds to allow use of CGT allowances, so periodic profit taking from the investments to feed the various cash accounts to provide the monthly money.

I think you need to consider what level of risk is acceptable.

jimjames

What is most important - getting best income possible or capital preservation?

If they already have sufficient cash deposits for emergencies and any day to day spending then I wouldn't see an issue with using some form of investment where the capital isn't guaranteed.

Ok, so it may drop in value but do you care if you only want to maximise your income?

dunstonh

One persons low risk is another persons high risk. It needs to be placed in context.

Starting to invest at age 84 is not normally viewed as a good idea. Being already invested and with knowledge tends to be less of an issue. Knowing what will happen to the money on death is useful (would the beneficiary carry the investments on for example)