Investment Based Income

At Nicholls Stevens¬†we have been dealing with client in retiremet for over 25 years, so we are acutely aware of the affect inflation can have on clients with a fixed income. Over long periods it can be prov3ed that the only way to receive return in excess of inflation is to invest in “real assets” such as property or shares. Most clients are not in a position to direclty invest in thse assets and we recommend that clients invest via collectives which reduce the risk because there is a spread of holdings. Even so the client must accept that there is a risk to capital.

Clients who have money in personal pensions, can decide to invest say part of their fund in an nvestment linked annuity. This means that there is a floor through which their income cannot drop but hopefully over the years they will be in receipt of an increasing income. The charges on some of these schemes is high, so it is important to take expert advice and to compare a number of funds before making a final decision

Clients investing in collectives or  stocks and shares ISAS may be recommended to invest in equity income funds either uk or global to suit their attitude to risk. Although there is a risk to capital most of the long running funds have managed to achieve a rising income stream