£95,000 to invest. what do?

Watchamacallit

hi guys.

So a number of years back i made a small investment into various assets (Stocks) and they've grown to a sizeable sum that i think is now worth cashing out on.

After taxes, i estimate approximately a 95,000 return.

Im in poor health who's worked most his life on minimum wage jobs, and as i've recently been made redundant the next issue i have is, obviously, a regular income.

With the funds i've secured through wise investing though, i want it to grow to a point of passive income but i'm honestly out of ideas.

Now i know 95k isn't really alot to secure you any real passive income, but if anyone can give me ideas where i can invest it wisely -- and securely/with minimal risk -- that can possibly provide me with a monthly income it would be appreciated.

Due to my poor health, i have my doubts about being able to hold down a job, at least full time and so investing this further to grow it really seems like the best option i've got.

One option i've been given is to buy part of a family members house. they'd secure about a 50% discount on a council house to which i'd pay the rest. But as i've never done any such thing before, it's all a bit daunting.

i have no other assets or savings to my name, no properties, and i currently rent.

So, if you were in my shoes; what would you do?

Any assistence here is hugely appreciated.

Eco_Miser

Have a read of the articles linked from this page. Start at the bottom and work up.

Helping to buy your family member's house relies on them having (and keeping) sufficient income to support you via rent, interest and return of capital, as well as themselves.

Pixie5740

How will buying half a house help you or your relative for that matter? Your relative will own 50% of the property through his/her RTB discount and then what? Pay you rent for the rest of their lives? Why would that be any different to continuing to pay the council rent except now your relative would be responsible for their own maintenance and repairs and wouldn't be entitled to HB? Or are you proposing that you would lend them the money and repay you with interest? Either way, you are proposing to tie your money up in an illiquid asset that you won't be able to access if/when you need it without your relative selling or getting a mortgage.

Linton

I agree with ecomiser that the idea of paying towards your relatives house raises lots of questions as to how it can meet your need for a secure, as high as possible, income.

With "investing at minimal risk" I cant see you safely getting more than say £2500/year without seriously depleting your capital especially if you want your income to keep up with inflation.

The highest level of 100% secure lifetime income from a lump sum could come from an annuity at the cost of all the capital. If you were 55 or older, and your ill health was life expectancy shortening, and you had no requirement to leave anything to anyone on your demise it could be worth looking into.

What sort of income would you want that would make a practical difference?

For how long would you want this income? For instance if you are eligible for a full state pension then you could aim to have exhausted your £95K by the time you receive it.

badger09

Watchamacallit wrote: »

hi guys.

So a number of years back i made a small investment into various assets (Stocks) and they've grown to a sizeable sum that i think is now worth cashing out on.

Why cash it all out at once if it has performed well over a long period? Do you expect it to perform badly in future?

jimjames

badger09 wrote: »

Why cash it all out at once if it has performed well over a long period? Do you expect it to perform badly in future?

My thoughts too. If it's not producing an income you could move the money into investments that do rather than cashing out where you're unlikely to get much income at all

Watchamacallit

badger09 wrote: »

Why cash it all out at once if it has performed well over a long period? Do you expect it to perform badly in future?

in the short term i'm expecting a serious decline yes, long term is anyones guess. but given my current circumstances i think it's wise to perhaps consider cashing out.

steampowered

If you were to cash out now, and live for a long time as I hope you will, one of the major risks you will face is "inflation risk".

If you want that money to last for the long term, you will be able to ride out the fluctuations associated with investments. But you are less able to ride out the poor returns associated with keeping the money in cash. It sounds like it would be sensible to leave most of this money invested.

mark5

I would move about 80,000 into FTSE 100 high yield shares, BP, Shell, GlaxoSK, Aviva, etc, it should be possible to get 4-5000 each year in dividends. I would keep the other 15,000 in easy access cash accounts.

System

Amazing to save that on low pay, well done
Imho continue with diverse passive investing, it's safer than putting all your eggs in one house

You don't need immediate access to the lot and should have faith that markets generally grow and businesses make profit, so invest in at least some equities

System

Timing the market usually fails, especially if you can wait it out, it could keep growing for years