Living of the interest.

Boohbah

I hope to have £100,000 to invest. The plan is to be able to live off the interest. I'm age 60 and have been retired for the past 3 years.

Any advice please as to were to invest or indeed how to invest.

ioscorpio

Surely you would be better off investing it in some kind of business or a buy to let property???
If you just leave it in the bank, then the value of your investment will devalue over te years.

dunstonh

Buy to let is high risk and requires input. Investing in a business is again high risk.

Having it all on deposit is pretty pointless as well as the impact of inflation will hit the funds. Also from age 65, it could reduce the age allowance if its on a savings account whereas some investments will not reduce the age allowance.

Investing in commercial property funds, gilts and fixed interest funds are low risk and offer good potential and are suited for those wanting an income.

Placing some funds into pension is still an option and can produce an income that is double that of a bank or building society account.

Not enough is known about your personal or tax situation and your attitude to investment risk, so its hard to answer you with suggestions to investigate.

Peter_Pan_6

Northern Rock have a silver Savers account at 5.1% monthly.

Milarky

And if you are over sixty y.o. also..

Coventry Building Society are offering two very good accounts at the moment

The 'Sixty-Plus Saver': With a one year rate of 6.0% variable [1.25% above Base Rate for 12 months then dropping to base rate guaranteed until 30.06.2010. Min balance just £500 and you can pay in upto £2,000 per month. Thus you could get 6% on an average balance of £12,000 in the first year.

Coventry also offering a 14 month fixed rate bond at 5.5% for balances between £1,000 and £250,000.

As you can see, you could get 5.5% 'for starters' with this. Now just see how much more you can squeeze out by looking at sightly better rates. I doubt you could get more than this on deposit anywhere. So as dunstonh says, you would need to consider investing part of it for income and growth - which means that part of your capital is no longer guaranteed of course.

cheerfulcat

Boohbah wrote:

I hope to have £100,000 to invest. The plan is to be able to live off the interest. I'm age 60 and have been retired for the past 3 years.

Any advice please as to were to invest or indeed how to invest.

Hi, Boohbah,

When you say " live off the interest ", do you mean that you wish to supplement your current income? Or that this will be your only source of income?

Boohbah

Many thanks for your responses.

With regard to my present tax position, I'm a none tax payer. With regard to investment risk, I guess I'm middle of the road on that one.

deemy2004

Boohbah wrote:

I hope to have £100,000 to invest. The plan is to be able to live off the interest. I'm age 60 and have been retired for the past 3 years.

Any advice please as to were to invest or indeed how to invest.

yes should be achievable

on £100k you would get about £5 to 5.5k gross with no risk.

Add on top your state and private pensions and your probably looking an total income of about £10 to £11k

dunstonh

With a low risk you are looking at 7k-14k (excluding other sources). No real need to move into medium risk funds.

Fatboy_NSS

I'll probably be shot down for recommending the company I work for, but Abbey has a bond being launched on Wednesday which offers a very good (so I'm told) guaranteed return paid out every month, which sounds like the kind of thing you need. It's likely to sell out very quickly, so you need to make an appointment to see someone on Weds or Thurs this week if you're interested to avoid missing out.