I just want a return above inflation, best option?

System

Do you just mean premium bonds as in from the bank? That's what I'm doing at the moment

Thrugelmir

Have you looked at National Savings & Investments?

http://www.nsandi.com/our-products

grey_gym_sock

berbastrike wrote: »

I have thought about it but if they go bust, then my life would be ruined!

yes, so you shouldn't put everything into p2p. but you might put a bit. and if you did, you should probably split it between a few different p2p platforms.

the same goes for just about any investment: maybe put a bit in it, but not everything.

(index-linked gilts might be an exception, because it's backed by the government, but as you've discovered, the returns are lousy, which is a different reason not to put everything in them.)

mvarrier

berbastrike wrote: »

ggs,

I'm young but want to live off the £500k.

How much income do you need to live off? Will you have any other income?

grey_gym_sock

Thrugelmir wrote: »

Have you looked at National Savings & Investments?

http://www.nsandi.com/our-products

national savings is also backed by the government, so is a possible safe place to put most of the money while working out what else to do with it.

ChesterDog

berbastrike wrote: »

Ok, that is what I thought.

I can't believe people are buying these gilts when they are losing money though, bizarre

Why is it bizarre to be willing to pay for some security of a large asset?

Gram_Parsons

Berbastrike has got "previous", check out some of his past threads and posts. Timewaster IMO.

Pincher

Tax free dividend allowance of £5,000 from April 2016.
Supposedly, a FTSE ETF yields 3% dividend, plus capital gain/loss. So, £150k yields about £4,500 tax free.


Don't forget the £1,000 tax free interest from April 2016. With some judicious use of Regular Savers and the Santander 123 3% account, it's easily done.


£7,500 Let-A-Room from April 2016. When I had long term lodgers, I could go away weeks at a time. The main thing is the house looks busy, the junk mail gets cleared. Mature student who study at home is as good as hiring a security guard. Actually, some students work as night security guards, quiet place to study.

xylophone

Actually, some students work as night security guards, quiet place to study.

They sleep through their lectures during the day?:rotfl:

jimjames

Investment trust paying 4% dividends.

£20k pa on £500k. But better to have a mix of assets. Over 35 years you'd be crazy in my view to keep it all in cash. Risk is all relative, if you need an income long term inflation is more of a risk than investments.