£50k to Invest for a monthly return

wmb194

There are a number of multi-asset funds which pay monthly and usually aim for a 4% to 5% annual yield. If you search Trustnet for, "monthly income" you'll find a list of them. To achieve this they tend to need to hold a reasonable quantity of dividend paying equities and lower rated bonds, though, and concomitantly will move with the market to some extent. DYOR and the usual advice is to spread your money between multiple funds, ITs, ETFs, etc. but one example to give you an idea of what I'm talking about is Invesco's Monthly Income Plus fund. 

https://www.trustnet.com/factsheets/o/k63o/invesco-monthly-income-plus-uk-y-inc

MaxiRobriguez

Smudger78 said:

Another_Saver said:

What do you mean by monthly return?
What is your age, pension situation, mortgage/homeowning situation, cash savings, and do you have currently have any investments not in a pension (PEPs, stocks and shares ISAs, company shares, inherited or gifted shares, bonds, funds etc.)
£200/mo of £50k is a starting withdrawal rate of 4.8% which is a bit high to be sustainable indefinitely.
For now, a bit of education about investing (there's been another recent thread about it I'll link it here in a mo) and sticking the lot in NS&I premium bonds is my suggestion.

Thanks for the fast response, in answer to your questions:
- 42 

At 42 you're still well within your accumulation stage. Surely you'd want to reinvest any income not take it?

Aminatidi

If you're set on wanting income fair enough but it might be worth google Terry Smith (of Fundsmith's) thoughts on investing for income v total return.

Eco_Miser

If you fixate on getting a regular monthly income you are limiting your options considerably. I use a number of Investment Trusts paying quarterly - in theory three such ITs could give a monthly income, but in practice there is a dearth paying in some months and a surfeit in others. It's not a real problem, just keep a buffer in an easy access cash account.

Smudger78

AnotherJoe said:

Smudger78 said:

Hi,
As the title suggests I will shortly have £50k which I would like to invest for a monthly return. I am hoping I can get 4% per annum return in order to be able to draw around £200/month without significantly diminishing the capital. Would be interested in the views of people with similar arrangements in place or experience of setting them up for others to get a feel for options and what kind of return might be possible. In terms of attitude to risk I would describe myself as medium/middle of the road.

Thanks

So you want the moon on a stick?

Might be available in an income focussed IT but not without significant risk of say, losing a substantial % in a  market  "correction"

Well don’t we all?!

But seriously, I posted the thread to get views from people on what is possible and what the options are as I wasn’t sure whether my aspiration was realistic. Glad I did though, have had some really good responses and have some new avenues to explore...

Bravepants

I have a small amount in income paying Investment Trusts (the usual suspects, CTY, MYI, MRCH), they all pay their income quarterly, but I have it paid into an unused current account and pay an amount out of that to my everyday account on a monthly basis - this is called "income smoothing". I'm only experimenting with the ITs at the moment with a view to increasing their use to provide an "income"  when I retire in a few years' time. I also have a growth S&S ISA and other investments, so I am not all-in with ITs. My mindset is that, with this smaller portfolio, I don't care what happens to the capital as long as the income is steady, and the average yield of that particular portfolio is about 5% for me because I bought before the recent rally. We shall see though whether I continue to hold over the next 10 years or so!

Jackthedog

Try the following
Epic 5.8% 
smif  6.9%
Nbmi 3.8%

All monthly... easy to sell