Does anything out there pay about 10% interest/year?
Discussion
Leicesterdave said:
£410,000
Have a look at an EIS for a portion of this??They come with varying degrees of risk, generally reflected in the projected returns.
They are very tax efficient for CGT purposes and the 30% income tax relief is very attractive.
We had a look at one through an Advisor a few years back but didnt proceed in the end.
They technically don’t fit your risk profile but certainly worth reading up on.
sidicks said:
If you want high income you need to risk capital.
If you can’t afford to risk capital then you only have low risk, low return options.
How low I guess is my question. I'd love to be able to risk that sum of money but as you can imagine, like many, this sum is a once in a lifetime opportunity. I won't get it again. I want security- and gambling that sum of money is just too risky.If you can’t afford to risk capital then you only have low risk, low return options.
Badda said:
This Dolphin https://www2.trustnet.com/Factsheets/Factsheet.asp... ?
Are those figures actually correct and if so, does it look as though Dolphin are paying out the investment rather than making a return as such?
Nope. Nothing to do with them. This:Are those figures actually correct and if so, does it look as though Dolphin are paying out the investment rather than making a return as such?
https://www.dolphin-trust.com/?lang=en
I would speak with an IFA who can take into account your full life circumstances with that kind of amount, things you may not want to detail out on here to strangers.
Anecdotally I've been spending a lot of time recently trying to get clued up on how to make my own money work harder than it would in the bank, less than your amount but still six figures.
4% income seems to be mentioned an awful lot as a target return with relatively little risk but you need to factor in things such as your age and timescales ahead.
For example you might consider it "safe" to put a small amount into something with potentially high rewards over the long term but also potentially higher risk and more volatile whilst keeping most of it in something much safer but with lower returns.
Keep in mind you have 100% safe "cash" options such as NS&I where even if it takes you some time to understand what you want to do, you'll be making 2% rather than whatever pittance your bank pays.
Oh and I work in IT so take all of that with a giant pinch of "do your own research"
Anecdotally I've been spending a lot of time recently trying to get clued up on how to make my own money work harder than it would in the bank, less than your amount but still six figures.
4% income seems to be mentioned an awful lot as a target return with relatively little risk but you need to factor in things such as your age and timescales ahead.
For example you might consider it "safe" to put a small amount into something with potentially high rewards over the long term but also potentially higher risk and more volatile whilst keeping most of it in something much safer but with lower returns.
Keep in mind you have 100% safe "cash" options such as NS&I where even if it takes you some time to understand what you want to do, you'll be making 2% rather than whatever pittance your bank pays.
Oh and I work in IT so take all of that with a giant pinch of "do your own research"
Leicesterdave said:
joyless lobotomised parrot said:
I (stupidly) missed out on the 7%pa over 3 years offer from Cashplus early in 2017. I have a couple of accounts with them and know many others who use them and they're well liked by their users. Certainly won't be failing anytime soon.
But didn't miss out on Dolphin Trust. That pays 10%pa and has done for years despite hyena howling from "experts" who want it to be a failure for some reason.
I hear that Dolphin won't be offering 10%pa for that much longer and that future offerings will be less. But 10%pa is still available and I can vouch that it's real because it gets paid into my account every 6 months.
There are others but I chose Dolphin because I'm familiar with what they actually do. Know some of their projects and they're really very good. Chances of failure? Tiny in my opinion.
Many thanks for this- exactly the type of investment I was looking for. Clearly, I need professional advice before I part with a penny but this is the type of investment I really like the look of!But didn't miss out on Dolphin Trust. That pays 10%pa and has done for years despite hyena howling from "experts" who want it to be a failure for some reason.
I hear that Dolphin won't be offering 10%pa for that much longer and that future offerings will be less. But 10%pa is still available and I can vouch that it's real because it gets paid into my account every 6 months.
There are others but I chose Dolphin because I'm familiar with what they actually do. Know some of their projects and they're really very good. Chances of failure? Tiny in my opinion.
A quick google of 'Dolphin Trust' brings up loads of data. One quite amusing bit is a 2013 reference from Moneysavingexpert.
At first a gaggle of 'financial experts' brays on and on about how its all a con etc etc. Then the next year a bit less braying. Then less and less as the years go by! Finally not a comment, and not one of them has the good grace to come back and say "I was wrong".
Leicesterdave said:
sidicks said:
If you want high income you need to risk capital.
If you can’t afford to risk capital then you only have low risk, low return options.
How low I guess is my question. I'd love to be able to risk that sum of money but as you can imagine, like many, this sum is a once in a lifetime opportunity. I won't get it again. I want security- and gambling that sum of money is just too risky.If you can’t afford to risk capital then you only have low risk, low return options.
You can’t have your cake and eat it.
If you’re not prepared to take on any risk at all then you will have difficulty generating a useful income in the current low interest rate environment.
Leicesterdave said:
Property developing is another avenue I guess?
Can be, and another very good one is lending. Chap (Z4Chris?) posted a reference to a company which takes investments in a bridging loan business not so long ago. Well worth a look at. As is Lendy. (and many others).I'd also be very careful of taking advice from people who haven't actually made very much money. Or who only understand risk as a theory.
Think about it.
Edited by joyless lobotomised parrot on Sunday 1st April 09:59
coyft said:
Commercial property with a good tenant would yield about 8%. Not exactly low risk, but you can mitigate the risk by selecting a good property with a reasonable tenant.
Your return is tied into the success of the company that leases the property and your ability to find a new one should they fail.
I think you're making it sound a good bit more difficult and less rewarding than it really is. Your return is tied into the success of the company that leases the property and your ability to find a new one should they fail.
Francois de La Rochefoucauld said:
Speak to an IFA Dave. There are no safe investments that offer 10% returns per annum.
There are posters on this thread operating under more than one username punting investments. I'd ignore them.
Thanks Francois. I have so many ideas- just need to speak to a 'pro'... One of them being buying a studio in Central London and letting it out on Airbnb.... That could work I imagine, I'd just worry about the potential for people to trash the place..There are posters on this thread operating under more than one username punting investments. I'd ignore them.
Leicesterdave said:
Thanks Francois. I have so many ideas- just need to speak to a 'pro'... One of them being buying a studio in Central London and letting it out on Airbnb.... That could work I imagine, I'd just worry about the potential for people to trash the place..
It’s certainly a potentially attractive opportunity to make decent returns. It certainly is NOT a low risk strategy.Leicesterdave said:
In what way were you thinking? I own a property in central London and make money on it. Do you mean in terms of people trashing the place?
There is that, but more importantly it’s:- undiversified
- illiquid
- tax inefficient
To mention just a few factors you need to have your eyes open to. You could also include volatile looking at recent price activity...
DoubleSix said:
Leicesterdave said:
In what way were you thinking? I own a property in central London and make money on it. Do you mean in terms of people trashing the place?
There is that, but more importantly it’s:- undiversified
- illiquid
- tax inefficient
To mention just a few factors you need to have your eyes open to. You could also include volatile looking at recent price activity...
DoubleSix said:
There is that, but more importantly it’s:
- undiversified
- illiquid
- tax inefficient
To mention just a few factors you need to have your eyes open to. You could also include volatile looking at recent price activity...
Seems a scary world out there with regards to investing.... I'm not wanting to be greedy as such but obviously would like I nice enough return!- undiversified
- illiquid
- tax inefficient
To mention just a few factors you need to have your eyes open to. You could also include volatile looking at recent price activity...
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