Safe investment

SRoberts

I am looking for an investment to put around £150,000 into so that I can live off the interest. I dont want to tie the money into an annuity or anything and really need access to it as and when. Are there any investments that will accumulate enough for me to have around £1000 a month disposible income or more preferably? I am 65 and do not have much of a pension to rely on either. Thanks

baby_boomer

There's no such thing as a safe investment (but you were actually talking about savings accounts).

There might be a safe savings account but the advice you will receive on here will be to divide your savings into £35K segments so that you would benefit from the the FSCS compensation should one of your banks or building societies go bankrupt.

Martin doesn't do assessments of which is least likely to go bankrupt.

SRoberts

It doesn't all have to go into a safe investment. I am happy, if not happier to split it all but just need to have enough to live off the interest it could potentially gain. No idea how much £150,000 could potentially give me a month....

strongboes

Well if you get 5% then it's 7.5k a year, bit short of what you want i'm afraid fella

cheerfulcat

SRoberts wrote: »

It doesn't all have to go into a safe investment. I am happy, if not happier to split it all but just need to have enough to live off the interest it could potentially gain. No idea how much £150,000 could potentially give me a month....

At 6.7% ( not sure whether those rates are still on offer from the banks ) a savings account will pay you a bit over £800/month before tax. But inflation will chip away at the value of both the capital and the interest.

You could look at bond funds/investment trusts - there are some which will give you close to the required income but of course they come with extra risk attached - you would need to spread the money around a bit. And they mostly pay twice yearly, not monthly. But you are in with a chance of increasing your capital value...

There is an Investing for Income board on the Motley Fool which might be of interest.

dunstonh

cash isnt a safe option either. if you take the interest as income then inflation will erode the real value of the £150k and in 10 years it could have the spending power of around 60-70% of what it has now. That will also impact on the spending power of the interest as well.