Sometimes your investment goal will be to enhance your regular income, rather than achieving a large sum at a future date. This can be a good strategy if you have a lump sum of money to invest, so that you make it actively work for you instead of simply putting it in a savings account.
There are not many investment funds that pay a monthly income, but your IFA will be able to help you choose from the few that do (if he or she agrees that such a strategy is appropriate for you). Such funds tend to invest in highly volatile mixes of assets, so be aware that your investment may fall as well as grow, and that your invested capital may be at risk.
Another way to invest for income is of course buy-to-let property. You may feel more comfortable with this idea, but remember that this too is not without its risks. Being a landlord comes with many responsibilities and costs, and is certainly not stress-free. See our page on letting property for more details.
Find your financial adviser today if you want to discuss investing for income.
Some questions to ask a financial adviser:
- What kind of assets should I invest in and what are the pros and cons of each?
- How much will I be taxed on the income I receive?
- Can my income from the investment fluctuate and is my capital at risk?
- What are the risks and rewards of this particular investment strategy?