income from investments

[pushions]

Hello all,

I often see posters taking about X amount of income via investments that they use for things like holidays & school fees etc.

But what investments give such returns & over what timescale & initial investment.

Is it mainly BTLs? I don't really think that's for me plus for someone my age who is new to it it's not got the returns of the past.

I have S&S ISAs but they have lost money & they don't give dividends. How do you get dividends from stocks, surely you need to put a lot of money down initially?

Some funds you need to invest a minimum but others you can invest as little as €50. It depends on the fund.

The best thing is to speak to a financial advisor and they can help you decide how to invest.

If you have investments you can instruct the provider to pay you a monthly amount. This can be made up of growth and income. It’s not necessary for dividends to be used. BP pays dividends, Apple doesn’t (well not much), and I know which I’d rather hold.

I usually start at 4% of the initial capital and pay that out across 12 months. Very straightforward. There are books written about sustainable income and it all seems to come back to 4%.

This is how we run people’s drawdown pensions now (well a few bells and whistles but that’s fundamentally it).

£20k is not going to get you much. I had £500k invested in various stocks and shares then after five years did a reckoning and after fees I was at the same place. Liquefied it all and bought a flat for £435k and sold it two years later for a £125k profit and the rent paid off the stamp duty and agent fees. No brainer.
With £20k I'd stick it in an ISA or research bonds with higher interest rates.

did you not have to pay CGT?

@TooHot2022 thank you so didn't know the difference between the funds.

@PhotoDad Ive never sold any tbh

Thank you for all the advice, I will check out the sites/books mentioned.

When you buy some of a fund you can set it to "income" which comes to you or accumulation which gets reinvested.

I also have through inheritance, Unilever shares which pay a dividend each year, twice a year I think.
It's not much but would add up.
At the moment what I have is set to accumulate.

Mr money moustache is good for this sort thing, his blog is good.

The idea is you build up the capital with investments, and when it's grown enough you take X percentage off it a year, enough for you but not enough to deplete the capital.

Read up about the first 100 grand because I think that's a number if you can get too it will start to grow more quickly.

@pushions

Also see above and check out fire movement website,much quite extreme in how frugally people live but good advise non the lessm