Lump-sum USD to invest for income

[floyd3592]

Spent the last few years of my working life, some of which were spent in the US, getting paid in USD, so I have a large amount of USD currently sitting in my bank earning zero interest. I intend as part of my retirement plan to spend 2-3 months each year in the USA so would like to get income from this sum paid in USD that I can use to live off when I'm there.

Could anyone advise me of the best way to invest this lump sum? I'm thinking about perhaps a bunch of US Companies high yielding shares or basket of investment trusts, trackers or even managed funds? I am currently a UK resident so tax considerations would come into play as well. Any ideas anyone?

[Alaric]

Could anyone advise me of the best way to invest this lump sum? I'm thinking about perhaps a bunch of US Companies high yielding shares or basket of investment trusts, trackers or even managed funds? I am currently a UK resident so tax considerations would come into play as well. Any ideas anyone?

As well as the "what", you may need to think about the "where". Presumably you need a Broker that gives you access to the US market in dollars and will pay dollars to and from a dollar denominated account. For UK tax purposes, it may be better for it to be UK based. Given its inheritance of the TD back end systems, ii may be suitable. Are there others?

Some ETFs and other collectives may not be available without a fight, even though the underlying stocks are, because of the supposed investor protection rules demanding KIIDs.

[floyd3592]

As well as the "what", you may need to think about the "where". Presumably you need a Broker that gives you access to the US market in dollars and will pay dollars to and from a dollar denominated account. For UK tax purposes, it may be better for it to be UK based. Given its inheritance of the TD back end systems, ii may be suitable. Are there others?

Some ETFs and other collectives may not be available without a fight, even though the underlying stocks are, because of the supposed investor protection rules demanding KIIDs.

Thanks Alaric, I've just checked with ii and on the face of it it seems I can open a US dollar account with them to trade in US stocks and get income paid into that account in USD. Their transfer charges in USD from their account to my current HSBC USD account look a bit eye-watering but I don't know of any other company that allows me to trade in USD like this.

[mc2fool]

Their transfer charges in USD from their account to my current HSBC USD account look a bit eye-watering but I don't know of any other company that allows me to trade in USD like this.

HSBC appear to. See "InvestDirect Plus" at https://personal.hsbc.co.uk/investments ... st-direct/ (I've no experience of them myself)

[genou]

I don't know of any other company that allows me to trade in USD like this.

Interactive Brokers might be worth a look. https://www.interactivebrokers.co.uk/features/

[Backache]

Money is fungilbe why not just convert it into pounds and buy a total us market index fund (vanguard do one) acc units and sell and convert back as needed.

[swill453]

Money is fungilbe why not just convert it into pounds and buy a total us market index fund (vanguard do one) acc units and sell and convert back as needed.

That's what I was going to suggest. With the right selection of current account and credit card it'd be possible to stay in the US and spend US dollars, all converted from GBP at the interbank rate with no further charges.

Scott.