What to invest in?

[JCKST1]

Asking on behalf of a family member who is looking for some advice. Having recently retired and cleared the mortgage, any loans etc they are now left with a bit of money and looking for a small income each month as a top up.
Naturally they thought of the BTL market but personally I dont think it would be worth the hassle for them so I am trying to think of an alternative.

Got about £20,000-25,000 to play with and looking for an income of around £300/400 per month.

I have been toying with a few ideas and comparing them to investments I have been playing with, one being luxury watches. I have seen a significant rise over the last 12-18 months, having bought sold numerous luxury watches, sourcing them something at the right price which can then be flipped was one thing I considered as they also have an interest in them.

Any suggestions welcome, they dont have to be long term investments as they are open to buying/selling items of value to make a profit, they done a similar thing years ago with classic cars but since downsizing house dont really have the space.

Thanks in advance

[sidicks]

JCKST1 said:

Asking on behalf of a family member who is looking for some advice. Having recently retired and cleared the mortgage, any loans etc they are now left with a bit of money and looking for a small income each month as a top up.
Naturally they thought of the BTL market but personally I dont think it would be worth the hassle for them so I am trying to think of an alternative.

Got about £20,000-25,000 to play with and looking for an income of around £300/400 per month.

I have been toying with a few ideas and comparing them to investments I have been playing with, one being luxury watches. I have seen a significant rise over the last 12-18 months, having bought sold numerous luxury watches, sourcing them something at the right price which can then be flipped was one thing I considered as they also have an interest in them.

Any suggestions welcome, they dont have to be long term investments as they are open to buying/selling items of value to make a profit, they done a similar thing years ago with classic cars but since downsizing house dont really have the space.

Thanks in advance

You want to get an income of between 18% and 24%...?

What you are talking about is not an 'investment', it's a risky business venture.

[BoRED S2upid]

Good luck trying to make £400 a month regularly buying and selling watches.

BTL would even be difficult with that level of deposit only doable in certain parts of the country.

If this was possible with little risk everyone would be doing it (whatever it is)

[Ginge R]

JCKST1 said:

Asking on behalf of a family member who is looking for some advice. Having recently retired and cleared the mortgage, any loans etc they are now left with a bit of money and looking for a small income each month as a top up.
Naturally they thought of the BTL market but personally I dont think it would be worth the hassle for them so I am trying to think of an alternative.

Got about £20,000-25,000 to play with and looking for an income of around £300/400 per month.

I have been toying with a few ideas and comparing them to investments I have been playing with, one being luxury watches. I have seen a significant rise over the last 12-18 months, having bought sold numerous luxury watches, sourcing them something at the right price which can then be flipped was one thing I considered as they also have an interest in them.

Any suggestions welcome, they dont have to be long term investments as they are open to buying/selling items of value to make a profit, they done a similar thing years ago with classic cars but since downsizing house dont really have the space.

Thanks in advance

Without knowing their specific circumstances or personal position, the first thing that springs to mind is that a £25,000 sum right now, for *most* 'recently retired' (young?) pensioners, should be invested to produce c.£60 pm 'safely' (a relative measure of course).

[walm]

JCKST1 said:

Got about £20,000-25,000 to play with and looking for an income of around £300/400 per month.

They should try setting up a business selling whatever it is that they are smoking.

[anonymous-user]

walm said:

They should try setting up a business selling whatever it is that they are smoking.

[sidicks]

walm said:

They should try setting up a business selling whatever it is that they are smoking.

[daddy cool]

Ginge R said:

the first thing that springs to mind is that a £25,000 sum right now, for *most* 'recently retired' (young?) pensioners, should be invested to produce c.£60 pm 'safely' (a relative measure of course).

Out of interest, what would you recommend?

[Ginge R]

daddy cool said:

Out of interest, what would you recommend?

On the basis of that, I couldn't, sorry. Cop out answer, I know.

[ozzuk]

Santander 123 account would bring you around £80 month. Not the most exciting but safe. Other than that you could buy 20k of any stock and try and sell it, depends how much hassle/work you want. There is nothing you can put such a small amount in and guarantee that kind of return (or at least tell us if you do find it!).

Shares are interesting at the moment, I re-jigged my portfolio after brexit, sold anything doing well and pumped it all into the ones worst hit - banks, oil. Recovering very nicely - my 25k is now 31k since mid June and positioned to grow further (or I could lose a lot, its gambling). You've missed the boat for big short term gains on banks but I think they'll go further.

[anonymous-user]

ozzuk said:

Santander 123 account would bring you around £80 month.

You sure? As of Nov 1 it goes down to 1.5% up to £20K.

[feef]

If I had £20k spare, I'd be looking at a managed buy-to-let with the likes of Pierre et Vacances, but that's more because I'd probably get some use out of it rather than making a monthly revenue out of it, and looking at it as a longterm investment

[lbc]

JCKST1 said:

Got about £20,000-25,000 to play with and looking for an income of around £300/400 per month.

Dream on.


You would need £100,000 to get near your £300/400 per month without buying property.

Edited by lbc on Wednesday 31st August 20:14

[bmwmike]

garyhun said:

ozzuk said:

Santander 123 account would bring you around £80 month.

You sure? As of Nov 1 it goes down to 1.5% up to £20K.

Correct, and 20k gets 50 quid pm

[lbc]

bmwmike said:

garyhun said:

ozzuk said:

Santander 123 account would bring you around £80 month.

You sure? As of Nov 1 it goes down to 1.5% up to £20K.

Correct, and 20k gets 50 quid pm

£50 now, but from November it will be £25/month when it goes from 3% to 1.5%, and then subtract the £5/month fee.

[DonkeyApple]

A Toyota Avensis should give that sort of return. It just depends on the hours worked and how much Uber take etc. Or sitting at a till at Sainsbury's.

The reality is that very many pensioners are stopping work before they have saved enough money to enable them to retire and unfortunately as with every situation where income is required. Speculative investment is not the answer, it's work.

Going gambling in illiquid assets or high return schemes is only going to result in them having to sell their house sooner. The only true solution is to continue working. Supermarkets and Uber being the two obvious solutions for that sort of income.

[pchmlk]

DonkeyApple said:

A Toyota Avensis should give that sort of return. It just depends on the hours worked and how much Uber take etc. Or sitting at a till at Sainsbury's.

The reality is that very many pensioners are stopping work before they have saved enough money to enable them to retire and unfortunately as with every situation where income is required. Speculative investment is not the answer, it's work.

Going gambling in illiquid assets or high return schemes is only going to result in them having to sell their house sooner. The only true solution is to continue working. Supermarkets and Uber being the two obvious solutions for that sort of income.

Not sure that's relevant for the OP? It's just a retiree looking for a bit of extra from some cash isn't it? Nothing to suggest they need to start mini-cabbing.

[Hainey]

DonkeyApple said:

A Toyota Avensis should give that sort of return. It just depends on the hours worked and how much Uber take etc. Or sitting at a till at Sainsbury's.

The reality is that very many pensioners are stopping work before they have saved enough money to enable them to retire and unfortunately as with every situation where income is required. Speculative investment is not the answer, it's work.

Going gambling in illiquid assets or high return schemes is only going to result in them having to sell their house sooner. The only true solution is to continue working. Supermarkets and Uber being the two obvious solutions for that sort of income.

Sounds like neighbors of my sister. They are a lovely couple but completely in fantasy land with their retirement plan, which seems to be stop work next year when she turns 55 (him the year after) and take all the money out the pension in one hit to place it in a savings account they will then live off for the rest of their lives. Sadly their pensions savings appear to be about tuppence hapenny.

[DonkeyApple]

pchmlk said:

DonkeyApple said:

A Toyota Avensis should give that sort of return. It just depends on the hours worked and how much Uber take etc. Or sitting at a till at Sainsbury's.

The reality is that very many pensioners are stopping work before they have saved enough money to enable them to retire and unfortunately as with every situation where income is required. Speculative investment is not the answer, it's work.

Going gambling in illiquid assets or high return schemes is only going to result in them having to sell their house sooner. The only true solution is to continue working. Supermarkets and Uber being the two obvious solutions for that sort of income.

Not sure that's relevant for the OP? It's just a retiree looking for a bit of extra from some cash isn't it? Nothing to suggest they need to start mini-cabbing.

They've got £20k, are over 55 and want a 25% return on their money. The only way they can achieve that is through what is called work. It can't be done through sitting on their arses and handing their money over to some crazy trading scheme.

So, given that the only solution is to work, what employment opportunities are there for an over 55 that are relatively flexible and will yield £3-400/month without requiring a specific trade skill or physical exertion? I think we can rule out being a judge or in the SAS for example. So, the two obvious roles for over 55 men are minicabbing and supermarkets. There are others but these two industries are the most geared up for this type of employment.

If I am incorrect then please outline what investments are available to an over 55 with £20k capital that will give a 25% annual return, year in, year out and not put the capital at significant risk?

Work is the answer. Not sitting down and handing what savings you have to snake oil salesmen. The harsh reality facing many people today and going forward is that if you retire without the savings and investments in place to give you the income you need or want to replace your work income then you have retired too early and must continue working for your required income. Or sell assets.

[pchmlk]

You know nothing of their pension situation - they might have huge FSPs that provide a very nice lifestyle and want to 'punt' the £25k to make a bit more.

I agree 25% returns aren't realistic, of course they're not, but it doesn't mean the couple need to carry on working - we know nothing about their finances.