How to invest 35000 for a small regular income

jimjames

kassy64 said:

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

Rather than go on and on about inflation etc  

Problem is that many people, maybe you included, seem to ignore the risk of inflation because it's invisible but at 10% pa it has far more of an impact. The OP has also said invest rather than save so deposit wouldn't meet that either. If this money is needed long term then something that beats inflation over the long term might be a better option. Having said that with a mortgage and possible impact on benefits from inheritance paying that down may be a more sensible option but until the OP gives more info no-one can really say.

Bravepants

Daliah said:

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.

Indeed. My grandmother fell foul of inflation when she agreed to take my grandfather's work's widow's pension as a flat payment in 1978. She lived until 2012. She also lived on the interest on her savings, and eventually had to use up that capital. I was a young lad in the late 70s, but sometimes I wish I could have gone back in time and changed a few things for her. A very practical lesson learned.

mylifemyrules

Hi Everyone, thanks so much for all your kids nd advice. So much to think about. To answer some of your questions I'm 32, I have a private pension and will be entitled to my full  state pension in the future. I'm a carer for my eldest child, my husband also has a private and a work pension and a good job so we are covered from that point. I won't be getting the money for a good few months yet so will certainly get a financial advisor involved but yes ideally we would like to invest some so that we can hopefully get a monthly return. I was thinking of looking into perhaps a income bond, stocks and shares ISA or a savings account or was also thinking about looking into buying Ms beba holiday chalet but as I said I need to look into all options. 

Albermarle

mylifemyrules said:

Hi Everyone, thanks so much for all your kids nd advice. So much to think about. To answer some of your questions I'm 32, I have a private pension and will be entitled to my full  state pension in the future. I'm a carer for my eldest child, my husband also has a private and a work pension and a good job so we are covered from that point. I won't be getting the money for a good few months yet so will certainly get a financial advisor involved but yes ideally we would like to invest some so that we can hopefully get a monthly return. I was thinking of looking into perhaps a income bond, stocks and shares ISA or a savings account or was also thinking about looking into buying Ms beba holiday chalet but as I said I need to look into all options. 

Not sure if it has been mentioned before, but £35K is at the bottom end of where an IFA might be interested in taking you on, especially if you were wanting to put some it in a savings account rather than invest it. 
Most likely they would want to at least look after your two private pensions at the same time, to make it worthwhile.

Olinda99

If it were me, and obviously I am not you, I would pay 35k off my mortgage and use the  reduction in the mortgage payments as my 'income'

macman

OP, what is your mortgage rate, and how long will it stay at that rate?
if you want zero risk and do not want to invest, then you are limited to savings accounts only at around 3.5% at present.
If your mortgage rate is higher than 3.5%, or shortly to be so, it makes sense to clear down as much of your mortgage as you can, subject to any overpayment charges applicable.

mylifemyrules

3.09% for three years. I will definitely look into overpaying the mortgage too and I might invest some and save some. I don't want to throw it all on one thing really. My husband wanted to buy a holiday let and get a income from that but I think that would be more hassle than its worth!

jimjames

mylifemyrules said:

3.09% for three years. I will definitely look into overpaying the mortgage too and I might invest some and save some. I don't want to throw it all on one thing really. My husband wanted to buy a holiday let and get a income from that but I think that would be more hassle than its worth!

You won't get a better savings rate than 3% at the moment so that would be good use of the money. Buying a chalet (caravan park?) would seem to not be a very good use at all unless you accept that it will be worthless after a period of time so if it is for your benefit to use it could be nice but for letting out it's not really a long term solution.

If you have no emergency fund then keeping some in savings is definitely a good idea.

Albermarle

mylifemyrules said:

3.09% for three years. I will definitely look into overpaying the mortgage too and I might invest some and save some. I don't want to throw it all on one thing really. My husband wanted to buy a holiday let and get a income from that but I think that would be more hassle than its worth!

Doing a bit of everything is the usual result from these types of questions.

Millyonare

jimjames said:

mylifemyrules said:

3.09% for three years. I will definitely look into overpaying the mortgage too and I might invest some and save some. I don't want to throw it all on one thing really. My husband wanted to buy a holiday let and get a income from that but I think that would be more hassle than its worth!

You won't get a better savings rate than 3% at the moment so that would be good use of the money. Buying a chalet (caravan park?) would seem to not be a very good use at all unless you accept that it will be worthless after a period of time so if it is for your benefit to use it could be nice but for letting out it's not really a long term solution.

If you have no emergency fund then keeping some in savings is definitely a good idea.

My mate nearly bought into a rural lakeside "caravan park" type chalet purchase. They wanted roughly £50k for a midrange chalet or static caravan, £4k a year in land rental fees, loads of extra charges for the outdoor swimming pool etc., the park was only open 8 months a year, and the chalet / static caravan had to be junked and replaced within 10-20 years max. Worked out around £100k (or more) per decade. Quite ridiculous.