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20122013
Posts: 477 Forumite

I have been thinking how to replace my current income (btl) as I have 2 years savings and 10 years to invest.
All my current liquid assets are in ISA, and I need an income of at least £15K p/a , I actually need £40K p/a
Currently I have 58% in S&S ISA and 42% in cash ISA and will be transferring my S&S ISA to iweb and to spread the risk by selecting more than one global index tracker..
I have narrow down my current options to using the same strategy but varying amount of funds :
1.
Put 100% into a few cash ISA accounts (less risk)
I am mindful of inflation but this will be a guarantee income. However, I will be needing a guarantee income each year, so not sure whether this is sensible or interest rate may fall.
2.
keep 9% in cash ISA (1 year spending money) and add the remaining to the existing S&S ISA totaling 91% to invest
3.
keep things as is 42% in cash ISA and transfer 58% to iweb (I still need to understand ETF, IT etc and ACC or INC etc but I am asking as my cash ISA products are ending and I need to decide how much to lock in.
I am thinking option 2, if I do not invest than I am taking a risk on inflation and would welcome your thoughts and want to know if have I miss something?
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20122013 said:I have been thinking how to replace my current income (btl) as I have 2 years savings and 10 years to invest.All my current liquid assets are in ISA, and I need an income of at least £15K p/a , I actually need £40K p/aCurrently I have 58% in S&S ISA and 42% in cash ISA and will be transferring my S&S ISA to iweb and to spread the risk by selecting more than one global index tracker..I have narrow down my current options to using the same strategy but varying amount of funds :1.Put 100% into a few cash ISA accounts (less risk)I am mindful of inflation but this will be a guarantee income. However, I will be needing a guarantee income each year, so not sure whether this is sensible or interest rate may fall.2.keep 9% in cash ISA (1 year spending money) and add the remaining to the existing S&S ISA totaling 91% to invest3.keep things as is 42% in cash ISA and transfer 58% to iweb (I still need to understand ETF, IT etc and ACC or INC etc but I am asking as my cash ISA products are ending and I need to decide how much to lock in.I am thinking option 2, if I do not invest than I am taking a risk on inflation and would welcome your thoughts and want to know if have I miss something?
You haven't given any figures about how much you have saved ('2 years savings' is meaningless), and just talk in %ages, making it nigh on impossible to comment unless relying on pure guesswork!
If you need a guaranteed income, then an annuity is surely worth considering? How much do you have saved in your pension to buy this, or what savings do you have to buy an annuity from other funds (doesn't have to come from a pension)?Googling on your question might have been both quicker and easier, if you're only after simple facts rather than opinions!0 -
£70K in cash and £10K in fixed savings till 05//2026 (I will have more funds from selling my property, perhaps in 6 - 18 months)
There is not enough in my pension to buy an annuity and buying one without using my pension will not suit me, either.
Trying hard not to spend the funds in my ISA, hence, I am looking for options so I can generate some income.0 -
20122013 said:
£70K in cash and £10K in fixed savings till 05//2026 (I will have more funds from selling my property, perhaps in 6 - 18 months)
There is not enough in my pension to buy an annuity and buying one without using my pension will not suit me, either.
Trying hard not to spend the funds in my ISA, hence, I am looking for options so I can generate some income.
What's your attitude to risk?
Googling on your question might have been both quicker and easier, if you're only after simple facts rather than opinions!0 -
Marcon said:20122013 said:
£70K in cash and £10K in fixed savings till 05//2026 (I will have more funds from selling my property, perhaps in 6 - 18 months)
There is not enough in my pension to buy an annuity and buying one without using my pension will not suit me, either.
Trying hard not to spend the funds in my ISA, hence, I am looking for options so I can generate some income.
What's your attitude to risk?0 -
20122013 said:Marcon said:20122013 said:
£70K in cash and £10K in fixed savings till 05//2026 (I will have more funds from selling my property, perhaps in 6 - 18 months)
There is not enough in my pension to buy an annuity and buying one without using my pension will not suit me, either.
Trying hard not to spend the funds in my ISA, hence, I am looking for options so I can generate some income.
What's your attitude to risk?0
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