£250,000 Save/Invest

Cash_in_the_attic

Hi All

Looking for some free advice from all you experts out there.

What is the best way to achieve max income on  £250,000  savings in order to supplement pension. Risk averse.

Debt free standard rate tax payer on State and small private pension.

dunstonh

Risk averse.

Which risks are you averse to and which are you willing to accept.

Investment risk, shortfall risk, inflation risk.....

Using cash savings doesnt have investment risk but it has a high risk of inflation risk and shortfall risk.  Using savings to supplement income can be higher risk than you realise.

Gadfium

Have a think about the amount of time effort and energy you put into writing that post. And then have a think about your expectations and why some people might not bother responding or might respond in a perfunctory way.

Albermarle

Cash_in_the_attic said:

Hi All

Looking for some free advice from all you experts out there.

What is the best way to achieve max income on  £250,000  savings in order to supplement pension. Risk averse.

Debt free standard rate tax payer on State and small private pension.

If you want returns above savings account interest rates , you have to take investment risk. End of story.

MaxiRobriguez

A sum of £250k is enough to consult an IFA over.

BananaRepublic

Cash_in_the_attic said:

Hi All

Looking for some free advice from all you experts out there.

What is the best way to achieve max income on  £250,000  savings in order to supplement pension. Risk averse.

Debt free standard rate tax payer on State and small private pension.

You have had quite a few abrasive answers. 

You need to do some background reading about investing in stock markets. There are good books out there. And you need to work out how much extra money per year you hope for. And how long you expect to live for, and if you want to pass on money after you pass away. 

In the long term stock market returns far outperform a bank account where the buying power of savings is eroded by inflation. But stock markets are volatile, so your investments could drop 30% or more in a short period of time. And it might take a year or more for them to recover. That is why people say invest for five years or more. A way to hedge against the volatility is by having a cash holding alongside stock market investments. You draw diwn from the cash, and each year you move some money from risky investments into cash preserving the total value. If the market crashes, you stop transferring money, and live off the existing cash, until the markets recover. Thus the cash is a buffer, it does not grow, but neither does it plummet. 

The above is just a brief idea of how to proceed, there is far more to it than that. Read some good books, understand the basics, and then plan your strategy. 

csgohan4

to be fair to the others, there are alot of these posts with no research and expecting other's to spoon feed. It does get repetitive and we do not know their risk appetite. Then they may get aggressive for not telling them what they want to hear or they never come back and another thread goes to the archives. Rinse and repeat

My first few posts on here, was not about I have xk, where do I put it? I want to make a quick buck. 

Rather these are the funds/ETI I have picked, what do you think, after doing a fair amount of research on the monevator website which has been provided from seasoned posters on here

OP do some research and come back on here, if you want your hand held, I would suggest an IFA

Eco_Miser

Cash_in_the_attic said:

Hi All

Looking for some free advice from all you experts out there.

What is the best way to achieve max income on  £250,000  savings in order to supplement pension. Risk averse.

Debt free standard rate tax payer on State and small private pension.

Max income? Nobody even knows what that is, let alone how to achieve it.  We'll know later, with hindsight. One thing we do know about it is that it will be high risk.

Even for a lowish risk, reasonable income there will be many opinions at to what is best - funds, Investment Trusts, individually build portfolios of shares and bonds.

Have a read of the answers to similar questions on this forum, and of the Monevator site, perhaps looking first at the deacummulation pages first: https://monevator.com/category/deaccumulation-2/page/3/

BananaRepublic

csgohan4 said:

to be fair to the others, there are alot of these posts with no research and expecting other's to spoon feed. It does get repetitive and we do not know their risk appetite. Then they may get aggressive for not telling them what they want to hear or they never come back and another thread goes to the archives. Rinse and repeat

It can be hard for a novice to know where to start, so it makes sense to ask the ‘experts’ for guidance. Avoids reading through a lot of crap thriwn up by google. 

csgohan4

BananaRepublic said:

csgohan4 said:

to be fair to the others, there are alot of these posts with no research and expecting other's to spoon feed. It does get repetitive and we do not know their risk appetite. Then they may get aggressive for not telling them what they want to hear or they never come back and another thread goes to the archives. Rinse and repeat

It can be hard for a novice to know where to start, so it makes sense to ask the ‘experts’ for guidance. Avoids reading through a lot of crap thriwn up by google. 

I looked at previous threads, searched the forum and followed threads and posts by the more experienced posters on here. You don't need google for this to be honest. Monevator is always thrown around here on these type of threads so that's how I got reading into it

'experts' are opinions, remember one man's meat is another man's poison. Take cryptocurrency and gold being very polar opposite and can bring heated discussions

Making an informed choice based on your own research is much better than being spoon fed advice for free which is not individualized at all, that's what an IFA is for.