Best income investment

kinger101

DairyQueen said:

moneysavinghero said:

bostonerimus said:

The first thing should be to pay off any high interest debt you have and then put a year's spending in the bank for emergencies. I would use the rest to increase your pension payments and fund an ISA. I would use a global equity and bond tracker portfolio or a multi-asset fund with a risk level that you can live with. When it comes to taking income from your pension (assuming it is DC) and ISA I would take a total return approach so you take some dividends and sell some of the funds that have gained. 

You could add a rental property, but as you have already bought you house I would want to keep any extra real estate investments fairly small, maybe under 100k...depending on how much you already have in pensions and an ISA etc. Also rental property will lock up your capital. Having said that, rental property has worked out well for me, but it's a small fraction of my investments. It produces about 5% of the current property value in income after costs and there has also been substantial capital gains. But being a landlord is a commitment and can be expensive if you have to do repairs, pay a management agent or have bad renters. So before you buy a rental make sure you fully understand the numbers, risks and work involved in essentially running a small service business. As an example I just had to replace a dishwasher for my tenant (cost around $800 or 500 pounds) and was over there last week to unclog the bathroom sink and unjam and reset the waste disposal. I do most maintenance like that myself, but if you employ someone to do it the costs can add up.

You own a house you rent in America, and you occasionally fly over to unclog tenants sinks? Or do Americans use this forum too? Or did you import an American dishwasher?

The clue is in the name. Bostonerimus is an expat

I always thought he lived near Skegness.  But thinking about it that looks a bit silly now.  They obviously don't have dishwashers in Lincolnshire yet.

bostonerimus

Deleted_User said:

kinger101 said:

I always thought he lived near Skegness.  But thinking about it that looks a bit silly now.  They obviously don't have dishwashers in Lincolnshire yet.

They hardly need them, being next to the Wash.

Nice one.

bostonerimus

moneysavinghero said:

bostonerimus said:

The first thing should be to pay off any high interest debt you have and then put a year's spending in the bank for emergencies. I would use the rest to increase your pension payments and fund an ISA. I would use a global equity and bond tracker portfolio or a multi-asset fund with a risk level that you can live with. When it comes to taking income from your pension (assuming it is DC) and ISA I would take a total return approach so you take some dividends and sell some of the funds that have gained. 

You could add a rental property, but as you have already bought you house I would want to keep any extra real estate investments fairly small, maybe under 100k...depending on how much you already have in pensions and an ISA etc. Also rental property will lock up your capital. Having said that, rental property has worked out well for me, but it's a small fraction of my investments. It produces about 5% of the current property value in income after costs and there has also been substantial capital gains. But being a landlord is a commitment and can be expensive if you have to do repairs, pay a management agent or have bad renters. So before you buy a rental make sure you fully understand the numbers, risks and work involved in essentially running a small service business. As an example I just had to replace a dishwasher for my tenant (cost around $800 or 500 pounds) and was over there last week to unclog the bathroom sink and unjam and reset the waste disposal. I do most maintenance like that myself, but if you employ someone to do it the costs can add up.

You own a house you rent in America, and you occasionally fly over to unclog tenants sinks? Or do Americans use this forum too? Or did you import an American dishwasher?

I'm a UK expat living in USA. I might be returning to the UK so I hang around this forum to learn about UK financial issues and also share my thoughts on personal finances as the basic principles don't depend on location.

Eco_Miser

kinger101 said:

DairyQueen said:

moneysavinghero said:

You own a house you rent in America, and you occasionally fly over to unclog tenants sinks? Or do Americans use this forum too? Or did you import an American dishwasher?

The clue is in the name. Bostonerimus is an expat

I always thought he lived near Skegness.  But thinking about it that looks a bit silly now.  They obviously don't have dishwashers in Lincolnshire yet.

I guessed Middlesbrough - motto: Erimus.