Monthly Income ISA

big_mortgage

I am looking for a low- medium risk share ISA that pays monthly preferably, for a retired person who has approx £25k and needs a slightly increased income. I realise that monthly income ISAs are quite rare and it may be better to consider one that pays quarterly or bi annually.

I am looking for providers and suggestions, preferably with low management charges.

Does anyone have any suggests, advice or experience of this please?

dunstonh

I am looking for a low- medium risk share ISA that pays monthly preferably, for a retired person who has approx £25k and needs a slightly increased income.

What is your definition of low/medium?
Possibly state it in the level of loss you would accept on the capital.

I realise that monthly income ISAs are quite rare and it may be better to consider one that pays quarterly or bi annually.

Not an issue nowadays. With cash accounts and the ability to use growth, you can build a regular withdrawal using different strategies.

big_mortgage

Level of risk-in those terms...10% I guess, but was thinking along the lines of just a fund with mainly standard equities and bonds. Possibly a passive one for lower cost???

Is this possible with just one fund or am I looking at a self select principal?

xylophone

https://www.sharesmagazine.co.uk/article/funds-that-pay-dividends-every-month-2

may be worth a look.

For this modest portfolio Iweb may suit?

https://www.iweb-sharedealing.co.uk/share-dealing-home.asp

dunstonh

Level of risk-in those terms...10% I guess

That is more like low. Low/medium have seen losses closer to 25% twice in the last 20 years.

but was thinking along the lines of just a fund with mainly standard equities and bonds. Possibly a passive one for lower cost???

Cost is a secondary concern to suitability and objective.

Is this possible with just one fund or am I looking at a self select principal?

One multi-asset fund will be fine.

big_mortgage

dunstonh wrote: »

Once multi-asset fund will be fine.

Thanks, any indications as to what are some of the best? I realise this is a really wide questions, but could do with some further pointers...

ColdIron

Perhaps Invesco Perpetual Monthly Income Plus or Fidelity MoneyBuilder Income. For something a bit racier maybe Artemis Monthly Distribution

Alexland

Or maybe a Henderson Multi Asset Core monthly income fund in an iWeb ISA wrapper? With a low tolerance to risk it will be harder to get much more than around 3% income. Beware going to heavy on bonds at the moment. I would pick a fund with some shares, bonds, cash, property, etc in the mix. Be careful not to 'income invest' at the expense of capital preservation and growth.

dunstonh

Remember that you dont need an income fund to pay a regular "income". Most modern platforms have a cash account. So, use the cash account to fund the fixed regular withdrawal and then rebalance the cash account annually. This way you can use growth funds and not just high yielding funds.

big_mortgage

Thank you all 3, very useful. Dunston, I think I get what you are saying and yes, income certainly doesn't have to be smoothed out. Just some income would be good.

You are also right that it will not be too heavy on bonds as capital growth is still great! I will look at all three funds suggested there. will possibly go for greater risk if there is potential for a 5-6% return.

Reed_Richards

£25k generating 3% income is £750 a year or £62.50 per month. Is that the sort of sum you are looking to achieve?