How can my £100k pay me £10k a year?
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Sexyscorp66
Posts: 25 Forumite
I have £100k from the sale of my parents home.I have no income,as I'm too unwell to work and have too much capital to be eligible for any benefits.
How do I provide an income that I can actually live on?-would £100k In a pension pot give me a good income now? -or would I need to look at an 8ncestment trust?-I don't want to risk losing it-but at the same time I need it to generate me an income to live on.
Any suggestions?
How do I provide an income that I can actually live on?-would £100k In a pension pot give me a good income now? -or would I need to look at an 8ncestment trust?-I don't want to risk losing it-but at the same time I need it to generate me an income to live on.
Any suggestions?
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Comments
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An income of £10k a year for how long? £100k can easily provide an income of £10k per year for 10 years, perhaps 11 or 12 years without taking any risk. It is not feasible for it to last a whole lot longer than that if you want to guarantee it won't run out in less than 10 years.
You mention putting it in a pension to generate an income now. Are you already over 55 years old?0 -
Let's say for 15 years0
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£100k will give you an income of £10k but only for about 10 years. (Probably more assuming you get some interest).
There is no "safe" savings account that will get you anywhere near 10% annual interest. The best currently available are about 1.5-2 % if you want to take the interest out each month, ie about £2k per year from £100k, and this will not keep pace with inflation.
Longer term you would need to take some risk and go for S&S which "may" give you an overall return of 3 or 4 %...or then again they may not.
There are some "annuity" websites that will give you an indication of a likely return, but I would only assume a couple of grand per year for an investment of £100k depending on whether you opted for inflation increases or dependents allowances once deceased..."It's everybody's fault but mine...."0 -
Sexyscorp66 wrote: »I have £100k from the sale of my parents home.I have no income,as I'm too unwell to work and have too much capital to be eligible for any benefits.
How do I provide an income that I can actually live on? I need it to generate me an income to live on.
It can't be done: you'd have to consume part or all of the capital.Free the dunston one next time too.0 -
Sexyscorp66 wrote: »Let's say for 15 years0
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Sexyscorp66 wrote: »I'm too unwell to work and have too much capital to be eligible for any benefits.
PIP isn't 'means tested' - might be worth taking a look:)
https://www.gov.uk/pip/eligibility0 -
Yes I do claim it,but it's only £212 a month.0
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Could you buy a letting property?0
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Become a loan shark at 100%/week interest.0
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Sexyscorp66 wrote: »Yes I do claim it,but it's only £212 a month.
Are you sure that's correct? The lowest PIP amount is £57.30 a week.0
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