£40k to invest for income

blazebuster

My wife & i havn't used our ISA allowance for this year and are looking to invest £40k for income. I am 63 & my wife 61. We will both retire next year. We will both have work place pensions. We have over £300k in ISA's already in Accumilation Units and will look to switch them to income producing. Is 3% return viable and leave room for some capital growth.
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Eco_Miser

3% would usually have been viable in the past. The future is unknown. Varying your income to what your investments support, is a better strategy than deciding on a percentage and taking it whatever the state of the markets.
See Monevator's deaccumulation section for suggestions on taking an income in retirement. See the other sections, and various blogs and commentary linked in the weekend posts for lots more about investing.

Linton

An average 3% income with some capital growth is a reasonable expectation. Over time the growth should ensure that the natural income is broadly index linked. There are managed funds that will aim to do this or you could put together a portfolio with both income and growth componennts and balance between the two.

ValiantSon

blazebuster wrote: »

My wife & i havn't used our ISA allowance for this year and are looking to invest £40k for income. I am 63 & my wife 61. We will both retire next year. We will both have work place pensions. We have over £300k in ISA's already in Accumilation Units and will look to switch them to income producing. Is 3% return viable and leave room for some capital growth.
]

As the new tax year is only 38 days away, might it make sense to wait until then and you can invest all using your joint ISA allowances?

EDIT: Eco Miser has kindly pointed out that I had misread the OP's post. I read it as them having used their current ISA allowance. I am happy to acknowledge my mistake and the above is, therefore, irrelevant. I won't delete it because I don't feel the need to hide where I have erred: doing so is not exactly a sign of maturity.

Eco_Miser

ValiantSon wrote: »

As the new tax year is only 38 days away, might it make sense to wait until then and you can invest all using your joint ISA allowances?

What's the point of waiting when they can invest all now, using their current year's allowances, and have £40k allowance available for next year if more money comes along?

ValiantSon

Eco_Miser wrote: »

What's the point of waiting when they can invest all now, using their current year's allowances, and have £40k allowance available for next year if more money comes along?

I misread their post. I thought it said they had used their ISA allowance for this year.

atush

Look at some good yielding, long running Investment trusts

MonroeM

I agree with Atush - there are some really established long running IT's that provide great yields.

ArchBair

There are a high number of established IT's that will pay good yields of 3-6% with potential growth. Look at the IT's in UK Equity Income, Global Equity Income, Emerging Markets and Asia Pacific regions.

kidmugsy

blazebuster wrote: »

My wife & i havn't used our ISA allowance for this year and are looking to invest £40k for income. I am 63 & my wife 61. We will both retire next year. We will both have work place pensions. We have over £300k in ISA's already in Accumilation Units and will look to switch them to income producing. Is 3% return viable and leave room for some capital growth.
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Can you explain why you would prefer investing in ISAs rather than pensions?

capital0ne

ValiantSon wrote: »

As the new tax year is only 38 days away, might it make sense to wait until then and you can invest all using your joint ISA allowances?

This has to be the most ridiculous tip I've seen. Complete nonsense - why throw away £40k's worth of tax free investments?