How to save a large sum of money for retirement.

Linton

BLB53 wrote: »

Personally, I would consider investing the sale proceeds in a basket of income producing investment trusts - you can sift through some via www.theaic.co.uk

I have a number of such trusts in my ISA - City of London, Murray Intl., Temple Bar, Finsbury Growth & Income, Edinburgh are some I would recommend.

They mostly pay out quarterly dividends. The combined yield is around 4% and this tends to rise each year a little ahead of inflation. So, with a lump sum investment of around £50K the starting income would be £2,000 per year which is roughly double what you get in the average building society cash deposit a/c

For more reading on this, if you think its worth pursuing, have a look at a couple of sites www.diyinvestoruk.blogspot.co.uk - check out posts relating to investment trusts, also www.johnbaronportfolios.co.uk check out the autumn/winter portfolios

Good luck!

Could be a useful part of a portfolio. However, I believe that all the ITs you suggested are invested in equities and on the whole investing in similar UK companies. So I dont think they would on their own comprise a properly diversified portfolio. I believe the OP should be looking at investing globally, should include bonds, and should include a % of higher growth non income generating investments.

marathonic

omgpop1 wrote: »

try 10 mill

If I was investing £10,000,000 and earning, for example, a conservative 6%, or £600,000 per year income from this, would I be wasting time posting TopCashBack referral links on MSE? I don't think so.

omgpop1

marathonic wrote: »

If I was investing £10,000,000 and earning, for example, a conservative 6%, or £600,000 per year income from this, would I be wasting time posting TopCashBack referral links on MSE? I don't think so.

err try sarcasm noob
you can buy call and sell putt options contracts at the same time you pay a small premium say $100 to have the right buy/sell 100 shares in your desired time and every dollar over/under your break even you gain $100 for 1 contract, if the stock moves 10pts over/under your breakeven you get $1000 so you've just went 100 to 1000 by buying 1 option contract, even if a stock moves up or down, if u buy both ways u spend 200$ and u get 1000 but your break even is double aswell, if the stock stays the same at the contract expiry you lose the 200

e.g you could have bought apple (was at $101) contract in september a two month expiry date for $300 if strike price was the same as date of purchase 101, your break even is at $104, as apple today is now at 116, uve gained 12pts equals 1200$
for starting with $300 you gained 1200

HarryD

omgpop1 wrote: »

err try sarcasm noob
you can buy call and sell putt options contracts at the same time you pay a small premium say $100 to have the right buy/sell 100 shares in your desired time and every dollar over/under your break even you gain $100 for 1 contract, if the stock moves 10pts over/under your breakeven you get $1000 so you've just went 100 to 1000 by buying 1 option contract, even if a stock moves up or down, if u buy both ways u spend 200$ and u get 1000 but your break even is double aswell, if the stock stays the same at the contract expiry you lose the 200

e.g you could have bought apple (was at $101) contract in september a two month expiry date for $300 if strike price was the same as date of purchase 101, your break even is at $104, as apple today is now at 116, uve gained 12pts equals 1200$
for starting with $300 you gained 1200

Looks like you've gone short on a few things there, omg. Please have these free gratis:

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. . . . . . . . . . . . . . . .

atush

As you live in the IOM and don't pay capital gains I'd look at investing the money. Including into an IOM pension plan if you have any income.

marathonic

omgpop1 wrote: »

err try sarcasm noob
you can buy call and sell putt options contracts at the same time you pay a small premium say $100 to have the right buy/sell 100 shares in your desired time and every dollar over/under your break even you gain $100 for 1 contract, if the stock moves 10pts over/under your breakeven you get $1000 so you've just went 100 to 1000 by buying 1 option contract, even if a stock moves up or down, if u buy both ways u spend 200$ and u get 1000 but your break even is double aswell, if the stock stays the same at the contract expiry you lose the 200

e.g you could have bought apple (was at $101) contract in september a two month expiry date for $300 if strike price was the same as date of purchase 101, your break even is at $104, as apple today is now at 116, uve gained 12pts equals 1200$
for starting with $300 you gained 1200

I am well aware of option trading as I've had significant experience in Covered Calls, Naked Puts as well as some spreads and Iron Condors.

The way you describe it, it sounds like it's a road to riches when it's most definitely not.

For example, Apple is currently trading at $106. If you buy a call option and a put option for February 27th expiry, it'll cost you $1,030 at current prices.

With the above trade, you lose money if Apple is trading anywhere between $95.70 and $116.30 in 6 weeks time. That's a $20.60 range and Apple has been stuck in a $20 range over the past 3 months.

Of course, you may be talking about buying a Call and selling a Put - if this is the case, your maximum loss is significantly higher than the cost of your initial trade. In theory, the maximum cost is $11,600 in addition to the initial cost of the trade (but this loss would require Apple to go to $0 which is pretty much impossible).

My preferred format for Options trading is to do it with stocks that I'm bullish on and the only time I short Options is when it's either a Covered Call or I have hedged the trade via an Options Spread. I have never, nor will I ever, get into trading options as part of a bet on volatility to either side.

kidmugsy

marathonic wrote: »

I am well aware of option trading as I've had significant experience in .... Iron Condors.

Ah, but have you done Copper Sparrows, or Amethyst Aardvarks?