80,000 to invest for income?

wrensnestred

I have 80,000 free cash to invest, I want a regular income as I have taken early retirement (60 yrs old), we are mortgage free, any suggestions?

Audaxer

wrensnestred wrote: »

I have 80,000 free cash to invest, I want a regular income as I have taken early retirement (60 yrs old), we are mortgage free, any suggestions?

There is a lot to learn before you plough it all into investments, but multi asset funds that have different levels of equities and bonds to suit different risk tolerances, and are globally diversified, are good to look at for a start. Some examples are Vanguard LifeStrategy funds, HSBC Global Strategy funds and L&G Multi Index funds. However they may not be the best for regular income, but better for Total Return, i.e. gains from growth and income. Have a look at this recent thread about Income Portfolios where there is discussion about taking income from total return compared to natural income from dividends:
https://forums.moneysavingexpert.com/discussion/5912477/income-portfolios
I would also suggest having a search through further threads on this forum and sites like Monevator before you decide what to invest in.

MK62

What are both your current pension and ISA positions?

wrensnestred

Thanks, I have a pension pot on draw down of 100,000, and a cash reserve of around 40,000 and my wife is still working full time, so I am comfortable with putting 80,000 into maybe an investment bond?

Audaxer

wrensnestred wrote: »

Thanks, I have a pension pot on draw down of 100,000, and a cash reserve of around 40,000 and my wife is still working full time, so I am comfortable with putting 80,000 into maybe an investment bond?

I'm not sure what type of bond you mean, but bonds are not great investments at present. A medium risk portfolio is thought to be about 60% equities and 40% bonds, with the bond part being mainly to lower the volatility.

What is your £100k pension pot invested in?

dunstonh

so I am comfortable with putting 80,000 into maybe an investment bond?

Investment bonds are typically low down the pecking order nowadays. Indeed, I haven't done an investment bond in over 5 years.

You typically find pension, ISA and unwrapped investments are higher up the pecking order. Unwrapped and Investment bonds used to be broadly similar but the introduction of the dividend allowance and a tax rate of 7.5% on dividends above the allowance meant that was a lower tax than the internal taxation on an investment bond. It is really only higher rate taxpayers and trusts where an investment bond is still viable nowadays.

ColdIron

Do you mean save (fixed rate bonds and easy access cash deposits) or invest (equities and government/corporate bonds etc)? Is the £80,000 in addition to your pension pot or is it part of it (where you will struggle to 'save' it)?

xylophone

Have you both checked your state pension position?

https://www.gov.uk/check-state-pension

Would your wife wish to increase her occupational pension contributions/open a personal pension?

Even if you are no longer earning, you can still pay £2880 into a personal pension/SIPP and receive tax relief of £720.

There are various funds that will pay regular income - presumably you would wish to shelter £20,000 in an ISA (even a further £20,000in your wife's ISA) and so the same in the next tax year?

https://citywire.co.uk/money/best-income-funds-gervais-williams-retains-top-spot/a1087934 may be worth a read.

wrensnestred

Hi,
80,000 is in addition to the 100,000 pension pot, what I want is the best way to get an income of around 300 per month from the 80,000

Evesham_Hardcore

wrensnestred wrote: »

Hi,
80,000 is in addition to the 100,000 pension pot, what I want is the best way to get an income of around 300 per month from the 80,000

So you want £3600 PA = 4.5% return

dunstonh

wrensnestred wrote: »

Hi,
80,000 is in addition to the 100,000 pension pot, what I want is the best way to get an income of around 300 per month from the 80,000

And nobody can answer that question based on the limited information supplied so far. And even then, you must remember that it will be a mixture of opinions. Some of which may be contradictory. We need more to go on.