Investing 400k for income

MX5huggy

Going to take a big hit on Capital Gains Tax getting out of the BTL? 

Do they work earning a salary? (Including self employment) if so they should be looking to put the maximum (annual earned income) into a pension. You can have all the same investments in a pension, but can’t take anything out till 55/57.

EthicsGradient

An investment trust that I don't think HL's list will find: JP Morgan Global Growth and Income. This pays at least 4% of its Net Asset Value as income per year, if necessary selling assets to achieve that. This means you get what should be, in the long term, a sustainable income (but it's near the limit) that should roughly keep up with inflation, without having to organise selling units each year.

JPMorgan Global Growth & Income plc | J.P. Morgan Asset Management

wmb194

There are tons of options. For investment trusts, play with the 'AIC sector' filter for UK equity income, global etc.: https://www.theaic.co.uk/aic/find-compare-investment-companies?sortid=Name&desc=false

The dividends heroes list is a good place to look to find well run, reliable Trusts: https://www.theaic.co.uk/income-finder/dividend-heroes

Trustnet is a good website to look at for similar with OEICs/UTs.

fizio

tacpot12 said:

I choose to invest about 90% of my retirement fund in funds that pay dividends, and 10% in fund that automatically reinvest their dividends. When the latter of these do well, I sell a few percent to buy more of the funds that pay dividends, so that my income keeps pace with inflation. It's one method, and almost certainly not optimal, but I'm happy with it and it's my money and my life that are affected.

Can I ask how you have invested: i.e individual shares, tracker etc, unit trust, investment trust - I have seen various ways to invest in high yield sector so interested in what people are doing. 

fizio

MX5huggy said:

Going to take a big hit on Capital Gains Tax getting out of the BTL? 

Do they work earning a salary? (Including self employment) if so they should be looking to put the maximum (annual earned income) into a pension. You can have all the same investments in a pension, but can’t take anything out till 55/57.

For reasons that I won't go into - the capital gains element is minor and salary is minimal so pensions route is not very viable - though has some merit at the edges

LHW99

ISA's can only take £20k pa so anything else will involve either CGT or tax on interest / dividends (if not in a pension).

A ladder of fixed rate savings accounts (1yr, 2yr, 3yr etc) may be worthwhile, as some will offer something around 4% pa, and can pay out the interest monthly.