Inheritance - investing for income
Discussion
Hi all
A freind of mine has recently come into a large sum of money (about £1m). Where is the best place for her to invest this for a stable income over the next 30 years. To put it another way - is there anywhere where she can invest it and generate £25k - to £30k per annum. It needs to be low risk and ideally index-linked (ie rising with inflation).
She's only 44 so annuity calculators dont seem to start that early.
Thanks
A freind of mine has recently come into a large sum of money (about £1m). Where is the best place for her to invest this for a stable income over the next 30 years. To put it another way - is there anywhere where she can invest it and generate £25k - to £30k per annum. It needs to be low risk and ideally index-linked (ie rising with inflation).
She's only 44 so annuity calculators dont seem to start that early.
Thanks
I should have clarified - the investment needs to be very simple and straightforward. I doubt that she would want to get involved with any of the palaver related to letting out property (whether its commercial or domestic). it needs to be very low risk and very little hands-on management required.
Cheers
Out of interest why would you be avoiding stocks and shares? what about Bonds/Gilts ?
Cheers
Out of interest why would you be avoiding stocks and shares? what about Bonds/Gilts ?
Thanks all
To narrow it down further can she get anything like an annuity at the age of 44? or maybe a long--dated bond?
ETA I might be overthinking this. I've just stuck the figures into an excel sheet and assuming a 2% yield and 3% inflation she will be able to draw down £24k per annum for about 35 years. She has a pension income on top of this so it should be OK.
To narrow it down further can she get anything like an annuity at the age of 44? or maybe a long--dated bond?
ETA I might be overthinking this. I've just stuck the figures into an excel sheet and assuming a 2% yield and 3% inflation she will be able to draw down £24k per annum for about 35 years. She has a pension income on top of this so it should be OK.
Thanks for all the comments and advice.
I should perhaps have emphasised that
1. it needs to be as simple as possible
2. She's not worried about tax, or maximising her possible income
3. She only needs £25k per annum to maintain her lifestyle (she has another source of income which is index linked)
As far as I can see something like VWRL with the dividends being paid into her bank account should be sufficient?
I should perhaps have emphasised that
1. it needs to be as simple as possible
2. She's not worried about tax, or maximising her possible income
3. She only needs £25k per annum to maintain her lifestyle (she has another source of income which is index linked)
As far as I can see something like VWRL with the dividends being paid into her bank account should be sufficient?
b
hstewie said:
hstewie said: Honestly given the above and until she finds her feet I think there’s a lot to be said about parking it in NS&I.
Zero risk and enough return not to need to worry whilst she digests all the options.
I think it might well end up being something like that.Zero risk and enough return not to need to worry whilst she digests all the options.
https://www.nsandi.com/products/income-bonds - gives her £35k per month, so £28k after 20% tax.
Or maybe these https://www.nsandi.com/products/guaranteed-income-...
Mr E said:
Countdown said:
https://www.nsandi.com/products/income-bonds - gives her £35k per month, so £28k after 20% tax.
A year, no?
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