Out of my depth

jem1961

Hi everyone, whats the best way to invest £40,000 for the maximum monthly income. I am a basic rate tax payer, who hasn't got a clue, many thanks for any suggestions.

bellybuttonfluffman

jem1961 wrote: »

Hi everyone, whats the best way to invest £40,000 for the maximum monthly income. I am a basic rate tax payer, who hasn't got a clue, many thanks for any suggestions.

Risk free? Easy access?
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atush

You say invest, so that means not in cash to me?

Is this your only 40K? If it is, you need to out aside some for emergencies. then invest the rest.

Have you ever used S&S isas? Do you have a pension?

Look at the Motley Fool and Moneyvator for investing for income.

I'd look at some income investments trusts that have a record of raising their dividends for decades.

jimjames

jem1961 wrote: »

Hi everyone, whats the best way to invest £40,000 for the maximum monthly income. I am a basic rate tax payer, who hasn't got a clue, many thanks for any suggestions.

If you haven't used your S&S ISA (or cash) allowance yet then you can put £15k into a S&S ISA before 5 April and another £15k into one after 5 April.

That then leaves £10k to invest. You could either leave that in a current account paying 3% (or 4/5% across 2/3 accounts) and invest it in a S&S ISA in April 2016 or invest outside an ISA now.

Really depends on the level of risk you're prepared to take but you could get 4% in equity income funds and slightly lower in bond funds.