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Advice for earning an income through investments??
Comments
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I would start by asking the OP what sort of income he is wanting from his 200k as the answer to ho risky his investments should be will be dictated by the income. If he bis only needing 3% then savings account/isa/premium bonds/etc are worth considering but if he is wanting 10% then it will be the more riskier end of Stockmarket eg S&P 500. If he wants more then it will be red/black at the roulette tables :-)0
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fizio said:I would start by asking the OP what sort of income he is wanting from his 200k as the answer to ho risky his investments should be will be dictated by the income. If he bis only needing 3% then savings account/isa/premium bonds/etc are worth considering but if he is wanting 10% then it will be the more riskier end of Stockmarket eg S&P 500. If he wants more then it will be red/black at the roulette tables :-)
Savings accounts and premium bonds are OK as long as he only draws down the difference between the interest rate and the current inflation rate. Even if he is invested in the stockmarket he would need to limit annual drawdowns to something between 3% and 3.5% (depending on proportion of equities employed) if his money is to last for the long term and have a chance of keeping up with or beating inflation.
If you want to be rich, live like you're poor; if you want to be poor, live like you're rich.0 -
The level of income required will definitely feed into the approach to income generation. The OP should do a search on terms like "investment yield" and "investing for total return".fizio said:I would start by asking the OP what sort of income he is wanting from his 200k as the answer to ho risky his investments should be will be dictated by the income. If he bis only needing 3% then savings account/isa/premium bonds/etc are worth considering but if he is wanting 10% then it will be the more riskier end of Stockmarket eg S&P 500. If he wants more then it will be red/black at the roulette tables :-)And so we beat on, boats against the current, borne back ceaselessly into the past.0
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