Where do we throw our money now?

[Desperate Dave]

Now that some of us have received our compensation, and others are expecting to quite soon, is it time to turn our thoughts to what best to do with it. My original investment was to provide regular income throughout my retirement and was yielding about £7k p.a.
£50km compensation, plus what savings we have will struggle to match this, which potentially leaves a bit of a shortfall in my financial planning.
I don't intend to seek financial advice, because the sum available does not excite IFAs, advice would be too expensive compared with returns and I am conscious of where "advice" got us previously.
For the time being, I have placed two lots of £20k into Santander 123 accounts for the wife and me, which yields 3%. Not fantastic, but not to be sniffed at and it's safe and readily accessible.
I have been considering peer-to-peer lending, which offers better returns but with an element of risk. The likes of Wellesley look fairly safe and I am tempted to start with a small flutter to get a feel for it.

I wonder if anyone has other (hopefully better) ideas or simply useful comments on this topic.
I would prefer non-players to stay off the green, as they say at our local bowls club.

Dave

[neilharr]

i am looking to put £15'000 into some sort of equity income fund in an ISA wrapper two which have caught my eye are the neilwoodford equity income fund and rathbones global opportunities fund

[PHowardUK]

Desperate Dave - please forgive me if you consider me 'someone off the green'.

Firstly - please don't take this as personal advice.

Well done for picking a relatively high level interest bearing bank account  - just stay in the high interest rate bands.

With regard to peer to peer lending - I hate to say it, but this has all the hallmarks of the next investment disaster - potentially high levels of returns, apparent low levels of risk, low levels of regulation and a lack of investor knowledge (anyone heard of something similar?).

While the Economy does well - any hidden issues will be covered up - but any bumps in the road could reveal without warning the risks present.

Don't get me wrong, Peer to Peer lending is improving in quality - but I can't see how it can be considered less than Medium risk.

Although not going to set the world alight - the new Pensioner Bond, which starts in 2015 provides a moderate return (4% on the 3 year fixed rate one) at 'low risk' (unless you feel the UK Government will go bust!).

Also, not exactly the 'best thing in ARM investors minds' - is a new pension!

Currently, it is possible to take up to 3 'small' pension pots as a lump sum - part Pension Cash Lump Sum (25%), part taxed (75%).

Lots of small print - so you would either need to check the rules out yourself - or seek advice.

With also the proposed new flexible drawdown rules - it may be possible to generate a moderate tax free income (Phased Drawdown - Part PCLS and part 'taxable' income - and so if your total taxable income equals your Personal Allowance, it's all tax free in effect).

Again - Lots of small print - so you would either need to check the rules out yourself - or seek advice.

Lastly - everyone should use as many of their 'tax free allowances' as possible -  ISA's being a good example.

It may take a few years, but repairing an retirement income stream should be possible.

Again - as a lot of potentially 'personal comments' - please do not take any of the above as personal advice.

(If anyone would like personal advice - I am happy to provide it - all initial discussions are confidential, free and without obligation - and should any advice be provided, it will be at a very competitive rate - please e-mail me if you are interested)

[neilharr]

paul
have you seen any equity income funds that you like the look of i would be willing to keep the money invested for at least 5 years
but if the natural yield is not high enough iwould need to take capital withdrawals to give me a 6 to 7% income i would be prepared to take some risk [on a scale of 0-10 possibly 6] and of course it would have to be covered by the FSCS any suggestions would be greatly appreciated

[PHowardUK]

Message sent to Neil - to avoid both cluttering up this topic and ensuring inappropriate personalised advice isn't given!