r32

What would be the best investment for around £170,000 to provide a regular income?

phil_wrx

iTrader: (2)

cocaine or heroine

boxst

I would say that was more a short term investment.

Steve

51st state

i would look at the posts on the thread
"we need more sunshine"
especially SPEEDMONKEY"

john banks

At the moment, some would say cash, although if inflation continues like it has it is difficult to get a return after tax. Many other things have lost money.

We have a 2-5 year plan for our house money, majority is in cash - 7% fixed for a year or NS&I index linked certificates. The rest in equities, funds or commodities that we think will do well, but so far (as a group since we sold our house) have underperformed cash. Our aim is different - not to produce income, but to preserve or grow capital after inflation.

If you do use cash, consider putting a maximum of £35k with each bank - read up on FSCS.

I think your main risk at the moment is losing it, you need to work out your risk tolerance and do your own reading or get trusted professional help. Read about commission bias if you use an IFA and consider whether you would prefer to pay a fee rather than have the advice funded by commission.

phil_wrx

iTrader: (2)

not if u keep re investing it and hey its the only luxury people are still buying :d

SunnySideUp

Find a property that is for sale at £220,000 - put in an offer at £170,000 (these discounts are being achieved).

Rent it out for £800 a month, look forward to some Capital Gains over the next 5 years too

d5hof

i would also advise something similar

EddScott

JB speaks alot of sense. Property suits some but not others. If you need the money in an emergency your stuffed if its tied up in a house.

Try getting some personal recommendations for local IFAs.

Midlife......

iTrader: (2)

There are a couple of people on SN who are VERY clued up on money..... JB is certainly one of them and if you are serious then I'd PM John and take it from there

The problem is that there are a lot of people on SN with not a lot of money to spare so sympathy not your strongest point..........I plan to "break even" at the ripe old age of 62, and then sell everything to fund the kids houses...then die LOL

Shaun

ronjeramy

iTrader: (1)

John is it not the Post Office Growth bonds that are offering 7.05% not ns&i? http://www.postoffice.co.uk/portal/p...diaId=19300235

john banks

The 7% fixed for a year I was thinking of were ICICI and Icesave IIRC, one of the rates has now dropped though. These are taxable. The Post Office Growth bonds were not around earlier in the year when the ICICI and Icesave offerings were when we were buying, but they also look good.

The NS&I index linked certificates are presently RPI + 1.0% over 3 and 5 years. If you and a partner invest you can put away £60k in each issue and they are tax free. They are particularly worthwhile if you are a higher rate taxpayer.

windyboy

or give it to me and I'll spend it for you

windyboy

AndyC_772

iTrader: (2)

Actually I don't think that's such a bad idea at all; given the relative rates of interest and inflation, and that 'stuff' is only likely to get more expensive in real terms over the next few years as oil and oil taxes continue to rise, you may not see such good value for your money for some time.

That's the excuse I've just used to redecorate the house and buy a new bike anyway...

r32

I cant spend it, I'm am relying on the income to suplement a reduced pension, so I need it to live on.

Should I spend it on the lottery?

AndyC_772

iTrader: (2)

I wouldn't

Joking aside, I know people (myself included) are being advised by their IFAs to park their spare funds in cash for now, and to wait and see what happens to the markets before reinvesting. Rather than transferring money from my poorer-performing funds into cash, where I'd still be paying tax on the interest earned, I elected to withdraw it completely and reduce my mortgage debt instead - syphoning off a couple of grand to spend in the process.

That only works if you already have a large debt to begin with, of course. If you're fortunate enough not to have one, then a few hours of an IFA's time would be money well spent IMHO - but don't be surprised if the bottom line for now is to stick it in the bank, wait and see, then rethink in six months.

WaynesWagon

Clearly any debts should be the number 1 item to address if spare funds are available ...... assuming, of course, that the interest rates on the loan are higher than the after tax rates on a savings account (which they normally are).

Best thing I ever did was to pay my mortgage off in about 6 years instead of 25 ..... by using a flexible mortgage and sweeping every last penny each month into it

tarmac terror

iTrader: (2)

For that sort of money you could have this

Terrace Residential Sale in Cregagh

Birthplace and home of footballing legend the late George Best!