How to invest 35000 for a small regular income

eskbanker

kassy64 said:

Ok, it may not be the best bet but it’s ‘an’ option. 

Rather than go on and on about inflation etc give some examples how the OP can get a small monthly return on their £35k which was the original request made. Once he/she has some options they can make a more informed decision. 

There were some examples shown further up the page, but without more information it's all just guesswork as to which options are likely to be relevant - we don't know how old OP is, how long the money is expected to last, what other assets they have (pension in particular), whether they're on sick pay or benefits, etc, etc, each of which can influence the identification of suitable options and hence the request for additional information within two minutes of the opening post....

Audaxer

Millyonare said:

As always, it comes down to one's personal appetite for "risk".

Some rough examples.

* Low risk = savings bank account (like UBI)... 3%... £100 a month

* Mid risk = established investment trust (like CTY)... 6%... £175 a month

* High risk = established income fund (like HFEL)... 9%... £250 a month

Not investment advice. Dyor, etc.

Investment Trusts are certainly an option as the OP is looking for income. CTY's current yield is around 4.76% (although for some reason currently showing on HL as 5.99%??). CTY is also top of the Investment Trust Dividend Heroes having increased it's dividend every year for the last 56 years.

There are many other good ITs that could go towards an income portfolio, but the OP would need to do their own research to understand the structure of ITs etc. before investing in any and deciding on a portfolio. One thing I would suggest is not being swayed by yield alone as a high yield is not always a good sign.

Daliah

kassy64 said:

Ok, it may not be the best bet but it’s ‘an’ option. 

Rather than go on and on about inflation etc give some examples how the OP can get a small monthly return on their £35k which was the original request made. Once he/she has some options they can make a more informed decision. 

Examples have already been given, starting in post # 4 in this thread. Not sure why you appear to have such an issue with people pointing out inflation and other risks. This is an expert forum so you would/should expect comprehensive 'advice' been given, including on matters the OP may not have thought of themselves. I am sure they will be able to decide for themselves which bits to take to heart and which bits to ignore.

NedS

Millyonare said:

As always, it comes down to one's personal appetite for "risk".

Some rough examples.

* Low risk = savings bank account (like UBI)... 3%... £100 a month

* Mid risk = established investment trust (like CTY)... 6%... £175 a month

* High risk = established income fund (like HFEL)... 9%... £250 a month

Not investment advice. Dyor, etc.

I'm interested to know why you think CTY is 'Mid risk' but HFEL is 'High risk'? Their respective KID's rate both trusts at 4 out of 7 so I'm interested why you think differently?

inflationbuster

Stock market.  One example:

Aviva (AV.) are paying 7%.   

With 35K @ 414p you could earn a potential £2600 from a 31p dividend.

Daliah

inflationbuster said:

Stock market.  One example:

Aviva (AV.) are paying 7%.   

With 35K @ 414p you could earn a potential £2600 from a 31p dividend.

Putting the entire sum on a single company would be just about the highest investment risk anyone could take. Don't do this, OP, whatever you do.

Millyonare

NedS said:

Millyonare said:

As always, it comes down to one's personal appetite for "risk".

Some rough examples.

* Low risk = savings bank account (like UBI)... 3%... £100 a month

* Mid risk = established investment trust (like CTY)... 6%... £175 a month

* High risk = established income fund (like HFEL)... 9%... £250 a month

Not investment advice. Dyor, etc.

I'm interested to know why you think CTY is 'Mid risk' but HFEL is 'High risk'? Their respective KID's rate both trusts at 4 out of 7 so I'm interested why you think differently?

HFEL shares have plunged -30% in 3 years (the past) and they are very heavily exposed to China and Asia where the next big war is probably going to kickoff at some point (the future).

wmb194

inflationbuster said:

Stock market.  One example:

Aviva (AV.) are paying 7%.   

With 35K @ 414p you could earn a potential £2600 from a 31p dividend.

The last time it paid 31p+ was in 2008. Last year's total normal dividend was 22.05p, so 5.3% at 414p. The next interim dividend will be declared tomorrow but I doubt it'll make a huge leap. If you're going the equity income route it would be smarter to go with some mix of the equity income ITs, OEICs and/or ETFs.

dunstonh

kassy64 said:

Ok, it may not be the best bet but it’s ‘an’ option. 

Rather than go on and on about inflation etc give some examples how the OP can get a small monthly return on their £35k which was the original request made. Once he/she has some options they can make a more informed decision. 

Because this website has contributors who like to point people in the right direction and not show them how to stick their heads in an oven just because they want to.

inflationbuster

wmb194 said:

inflationbuster said:

Stock market.  One example:

Aviva (AV.) are paying 7%.   

With 35K @ 414p you could earn a potential £2600 from a 31p dividend.

The last time it paid 31p+ was in 2008. Last year's total normal dividend was 22.05p, so 5.3% at 414p. The next interim dividend will be declared tomorrow but I doubt it'll make a huge leap. If you're going the equity income route it would be smarter to go with some mix of the equity income ITs, OEICs and/or ETFs.

The dividend has been rebased due to a share consolidation and includes a slight increase.  Should be 31p for 2022.