Passive income strategy - 300k - Investment Trusts?

The Ghoul

Frequent Poster
Messages
347
It is looking very likely that I will have to leave work and go on Carer's Leave for the maximum allowed 2 years. I would get Carer's Benefit but after 2 years that would cease and I'd either be returning to my job (public service) or resigning. Need to plan for the latter scenario.

Luckily, I have a modest lifestyle so don't need much income. 12k per year net would do me. If I could generate close to that from dividend payments etc., I'd be delighted.

Financial situation at the moment is as follows:
No debt.
Live with the person I am caring for in their house which I will inherit.
820k State savings.
95k (tut tut!) in current account.
Investment property worth about 200k that I would sell, no CGT.

Investment trusts would seem to be a reasonable option for investing the property proceeds plus current account funds.

Obviously, I would need to do my own research (which would include reading other threads on AAM) but would anyone care to discuss in this thread. Any discussion on the tax implications and the practicalities of investing ~300k in investment trusts would be welcome.

Thanks
 

Laughahalla

Frequent Poster
Messages
224
If you can live on what you say then you are already financially Independent. You can choose to work or not work assuming you keep your lifestyle under control and don't go nuts.

Whatever you do stay debt free.

I would relax If I was you and get some advice from at least two different financial planners on how to get a decent return on your money in the most tax efficient way.


You are in a very healthy financial position.
 

cremeegg

Frequent Poster
Messages
3,357
how to get a decent return on your money in the most tax efficient way.
The risk free rate of return at the moment is close to zero. There is no 'decent return' available.

That is before any charges you would pay on any product.
 

DeeKie

Frequent Poster
Messages
666
What’s the revenue from the investment property. Would you not just hang on to that?
 

The Ghoul

Frequent Poster
Messages
347
What’s the revenue from the investment property. Would you not just hang on to that?
Good question, I neglected to mention that the income from it is 0. Calling in an investment property was also probably misleading, it was intended to be my PPR but things didn't work out as planned. It is located in a part of the country where rents are low and I have little interest in becoming a landlord.

Also, I hope to avail of the dwelling house relief from CAT when I inherit the house that I live in. To claim this relief, I can't have an interest in another residential property. If I have to pay the CAT, it would be approx 80k based on today's property values.
 

Theradical

New Member
Messages
1
If you can live on what you say then you are already financially Independent. You can choose to work or not work assuming you keep your lifestyle under control and don't go nuts.

Whatever you do stay debt free.

I would relax If I was you and get some advice from at least two different financial planners on how to get a decent return on your money in the most tax efficient way.


You are in a very healthy financial position.
Agreed
 
Top