what to do

shiredevon

Hi i'm retired living in asia with 2 annuities of 50k each paying 380 and 300 respectively, i've just received 35k from a property sale,

Do i just slowly spend it, buy another annuity or is there any other vehicle i could invest in that would give similar returns to an annuity?,

I can survive on my two annuities but it's reasonably tight!,

Thanks in advance

Eco_Miser

This article is discussing changes in the UK pension rules, but it, and the articles it links to, contains much that is relevant to your case.

Basically, you invest in a collective investment scheme that pays you an income, while keeping your capital available for you to spend if need be.

Unlike an annuity, there are no guarantees, but some Investment Trusts have been paying an increasing income for many decades.

shiredevon

Thanks eco, excuse my ignorance but do things like gilts and bonds produce anything like the returns of an annuity?,

I'd like to be able to invest the money and produce an income but still be able to leave something to my children rather than have it die with me!,

Thanks again

Eco_Miser

Some gilts and bonds return exactly the returns of an annuity, less the part that is actually a return of your capital, since that's what the annuity providers invest their (your) money in.

Having said that, gilts yields are poor at the moment. Take a look at Investment Trusts designed to produce an income from equities. There are several with current dividend yields over 3% AND growing their capital.