Financial Q - Income Funds

[garycat]

Hi

Is there an online calculator anywhere that will allow me to see how much income I can get for a specific investment amount.

Im thinking of selling the house and moving into rented accomodation for a while so I'll have maybe £200K after the mortgage is paid off and I'd like to know if this will generate enough income to pay the rent until I find a new permanent home.

Cheers.

[walm]

Ah - if I understand correctly, you could just use a regular calculator.
Take the interest rate you expect to get - say 6%?
200*0.06=12 then pay some tax which depends on how much you earn.
Since your are on PH that is obviously in 6 or 7 figures so you will be paying 40% tax.
12*(1-0.4)=7.2 annually
7.2/12=0.6 i.e. £600 per month.
Higher interest rate means more ££: at 7% it would be £700 per month (obviously).

I am not regulated by the FSA you should speak to an IFA for proper advice and past performance does not guarantee future returns.

[garycat]

It will go in my wifes name and she's a non-taxpayer so that will be 20% tax

Any suggestions of good funds? Jupiter or Fidelity are usually recommended

[fido]

be aware of tie-ins or any upfront fees (bid/offer spread), because i'm assuming you are going to get back on the property market sometime in the near future i.e. 6 months - 1 year. i'm doing the same thing at the moment, and it's going into a high-interest account with easy access in case i need it back.

Edited by fido on Saturday 3rd May 10:57

[garycat]

Ironically, the safest place for a few hundred £K is in Northern Rock as all deposits are guaranteed by the government. With any other financial institution, if it goes bust you only get £30K back.