Where to invest?
Discussion
My mum and dad separated 3 years ago and the long and short of it is she will come out of the deal with a house and about £100k.
She is 58 years old, house is paid for, she does not work and has a small pension.
Where is the best place for her to put her £100k bearing in mind that this will have to do her for the rest of her life.
She is 58 years old, house is paid for, she does not work and has a small pension.
Where is the best place for her to put her £100k bearing in mind that this will have to do her for the rest of her life.
Investing is truly carp at the present time. If you see this as her money and not your inheritance you should advise that she raise her standard of living and spend some of this. That way she gets to enjoy it and if she spends some money on improving her home she could be enjoying that for many years. Putting some away for a rainy day is a sound thing to do but the return from £100k is peanuts these days so the only reason to do it is to cover the uncertainty of the future. Remember that this money will be accounted for and used to pay for your mother if she ever needed to live in secure accommodation. If on the other hand she spends and enjoy it now, the council will pick up the cost of any such secure accommodation.
I had investments like this but pulled the vast majority out a few years ago because the return was becoming so poor. I chose to spend and improve how I live. I still conceder this was the right choice for me.
I had investments like this but pulled the vast majority out a few years ago because the return was becoming so poor. I chose to spend and improve how I live. I still conceder this was the right choice for me.
Is she working?
If so how much does she earn and how long does she want to stay working. Does she have any other income?
What pension arrangements does she have?
Has she made a will? and Inheritance tax planning.
What are her outgoings?
The list goes on.......
She will need to find an appropriate financial advisor, one who can ask these questions and many others in order to advise properly.
She will need to find one who has her interests at heart and is willing to give advice on things that he doesn't earn commission on, as well as those that do. There is one on PH IIRC, can't remember his name though.
If so how much does she earn and how long does she want to stay working. Does she have any other income?
What pension arrangements does she have?
Has she made a will? and Inheritance tax planning.
What are her outgoings?
The list goes on.......
She will need to find an appropriate financial advisor, one who can ask these questions and many others in order to advise properly.
She will need to find one who has her interests at heart and is willing to give advice on things that he doesn't earn commission on, as well as those that do. There is one on PH IIRC, can't remember his name though.
she doesnt work (stopped after the split - it affected her very badly at the time but all good now)
not sure about her pension but I know it wont be that big.
she will need to use some of this money to live on so the amount will obviously decrease as she gets older.
And no I don't see this money as my inheritance
not sure about her pension but I know it wont be that big.
she will need to use some of this money to live on so the amount will obviously decrease as she gets older.
And no I don't see this money as my inheritance
I concur with what Leosayer states above.
BTW, from the limited info. you provided above, your mother has minimum/no debts with 100k cash. I am "guessing" she needs an income to survice/ meet her every day needs. If this 100k is her only source, she needs to protect the capital and ensure she receives an annual income. Also, when she offically becomes a "pensioner", such income is tax free i.e. inform the Bank so they don't deduct income tax from the interset etc..
BTW, from the limited info. you provided above, your mother has minimum/no debts with 100k cash. I am "guessing" she needs an income to survice/ meet her every day needs. If this 100k is her only source, she needs to protect the capital and ensure she receives an annual income. Also, when she offically becomes a "pensioner", such income is tax free i.e. inform the Bank so they don't deduct income tax from the interset etc..
Tomt said:
your mother has minimum/no debts with 100k cash.
correct
Tomt said:
I am "guessing" she needs an income to survice/ meet her every day needs.
correct
Not a nice thing to discuss but assuming she lasts another 20 years that only gives her £5k pa to live on even less if the old bugger carries on longer.
What do you think about using a percentage of the money to buy an investment property.
By our local uni there are lots of houses which sell for around £60k and give returns of £500pcm in rent.
That way a portion of the money would always be there (equity in the house which she could liquidate if neccesary) and still have a reasonable income.
Good idea or not?
It's not a fruitfull as used to be but 30k of premium bonds is worth a try as there is an outside chance of winning a tidy sum, you can expect an average return of 3-4% and can also access your money at 1 months notice.
I am resisting the temptation to write down every rude word I know, just to see which get censored and which don't :-)
I am resisting the temptation to write down every rude word I know, just to see which get censored and which don't :-)
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