Investing

Marhaba_Man

I am looking to generate an income to suplement my pension

cheerfulcat

Are you actually reading the replies to your original question?

jem16

cheerfulcat wrote: »

Are you actually reading the replies to your original question?

Cheerfulcat - I get the impression that Marhaba Man is looking for someone to say put your money in this account.

The same question was asked on the pensions board on 30th July.

http://forums.moneysavingexpert.com/showthread.html?t=514027

I don't think DIY will be suitable in this case.

cheerfulcat

Hi, jem16

I don't think DIY will be suitable in this case.

I agree! But the IFA option has also been mentioned and seemingly ignored.

jem16

But the IFA option has also been mentioned and seemingly ignored.

True - I've mentioned it twice already.

Unfortunately I can see the OP just sticking it in a savings account and losing a whole lot to tax and inflation.

I did exactly the same thing 5 years ago as I didn't know any better at the time. Fortunately sorted now.

Marhaba_Man

I am looking for areas to invest as the IFA i spoke to wa steh one who suggested REITs and from teh comments in here they are far from being an ideal investment

jamesd

Find a better IFA. That one wasn't a good one.

EdInvestor

Marhaba_Man wrote: »

I am looking for areas to invest as the IFA i spoke to wa steh one who suggested REITs and from teh comments in here they are far from being an ideal investment

Unfortunately IFAs won't normally recommend investment trusts because they pay no commission (one reason they have lower charges than unit trusts).

Here's the list of the property ITs I mentioned:

http://www.trustnet.com/it/funds/perf.asp?sort=2&page=0&ss=0&txtS=&txtSS=&columns=&class=conv&booAITC=0&reg=all&sec=4&aitc=all&submitbutton=Go#top

I would suggest a choice of two or three of the ones run by the big insurers, eg Nos 5,9,10,11,12.

Look at the "NDY" column to see what dividend interest you can expect.

You would need to open an ISA to put these investments in, so the income is paid out tax free.

I suggest you look at www.selftrade.co.uk.

They charge a flat rate 25 pounds a year for the ISA. You will also pay a dealing charge once when you buy the ITs. Selftrade will collect the divis for you and the account has a BACs transfer facility to pay them out to your bank account.

You can add to your ISA every year.If you put in 7k now, next April the allowance is going up to 7.2k, so you could then top up and have 14.2k in the property trusts.

dunstonh

Unfortunately IFAs won't normally recommend investment trusts because they pay no commission (one reason they have lower charges than unit trusts).

Unfortunately, IFAs wont normally recommend investment trusts because they are not authorised to do so. IFAs can only recommend packaged ITs and there aren't many of those.

EdInvestor

dunstonh wrote: »

Unfortunately, IFAs wont normally recommend investment trusts because they are not authorised to do so. IFAs can only recommend packaged ITs and there aren't many of those.

They're not authorised to advise on shares either.You get a very narrow investment focus when you use these advisors, and far too many of them are biased to insurance company products.