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Using capital for income generation

Discussion in 'Retirement' started by albertdog, Jul 10, 2011.

  1. For once my luck seems to be changing, as I have come into some cash; compensation for the road accident that put an end to my teaching career. I wondered if people had any ideas of how I could invest this to generate some monthly income to supplement my pension. Following the NAS advice, i contacted Wesleyan, but was quite flatly told that they only deal with serving teachers, not those who have already retired (which rather surprised me). I have made enquiries at a couple of building societies, but none of them seem to be interested in discussing my situation: seemingly, you cannot give companies money, these days.
    So, any ideas or experiences gladly accepted.
  2. phatsals

    phatsals Senior commenter

    Put what you can into an ISA
    Fidelity Moneybuilder Income - 3.7% - income monthly
    Invesco Perpetual High Income - 5.2% -
    Invesco Perpetual Monthly Income Plus - 5.7% - income monthly
    A newer and racier fund
    Schroder Global Property Income Maximiser - 6.9% - income quarterly
    Go through fund managers that give good or full discounts
    BestInvest, Hargreaves Lansdown
    Put in a little, monitor for a while and add over a few months
    None of the above are bonds but if you try just a small investment to start with see how comfortable you are with it.
  3. The main issue to consider is the risk you are prepared to take with this money. A young person in a sercure job might opt for shares or corporate bonds as suggested above. They offer the chance of good returns but also carry the risk of default. The value of the bonds can go up and down and in the case of default become worthless.
    If you dont want to risk losing the money then you could look at National Savings and Building Societies where your savings are protected up to £85k. National Saving index linked seems to be well worth looking at to start with.
    Looking at the number of well known firms going under each week I prefer the boring risk free approach.
  4. davidmu

    davidmu Occasional commenter

    The advice offered by phatsals is excellent. I would go further and simply stick with Fidelity. You can use any of their funds or indeed many funds from other investment houses. The Fidelity website takes some beating if you have a little knowledge yourself.
  5. You mean you managed to get hold of someone at the NAS to offer advice?! I'm shocked.
  6. Phoned up Fidelity to be told that they are 'not seeking new business at the moment'.
  7. phatsals

    phatsals Senior commenter

    Don't go direct to fund managers, they still charge 5% or more. BestInvest and Hargreaves Lansdown don't charge initial fees or it's a very minimum fee.
    Look through financial papers, do some research yourself and start small. You can buy Fidelity funds via Bestinvest - no initial charge - but they won't give advice.
    You can pay a fee and have advice or it's free if you have a lot of money to put in.

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