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Rob B
Posted: 14 July 2024 14:30:34(UTC)
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Joined: 07/10/2018(UTC)
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Mrs B's parents are not in the best of health. Mentally sharp, physically not so good. My sister-in-law has a largish pad so the plan is for Mrs B's parents to sell their house and move into a purpose built scandi-style cabin at the bottom of the garden. Seen the brochure. Looks spot on for what they need.

Once fees for house sale and scandi build costs have been paid, there will about £175K left over. For my in-laws this is a monstrous amount of money. They're decent people who have worked hard. Question now is what to do with it. Due to life expectancy (both being over 75) investing is not an option they want to consider. This money will allow them to live comfortably going forward so the solution must be low risk.

I'm thinking NS&I products; maybe a gilt ladder; possibly HL active savings. Any other ideas? I want to present a well thought through options plan.

EDIT in bold for clarity.
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Tony Peterson
Posted: 14 July 2024 14:49:01(UTC)
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I find the statement that "investing is not an option" for the over 75's ill-informed, ageist, patronising, and offensive.

Being over 85 ourselves , investing is still the only option we consider. We've reached a stage where we need to pay for help with cleaning and gardening, but may one day need more expensive end-of-life care.

Securing, by investing, the best income stream from a sensible investment strategy is proving itself, so far, to be totally worthwhile.
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11 users thanked Tony Peterson for this post.
You have to change your life on 14/07/2024(UTC), John Bran on 14/07/2024(UTC), Julianw on 14/07/2024(UTC), Johan De Silva on 14/07/2024(UTC), J Thomas on 14/07/2024(UTC), Guest on 14/07/2024(UTC), alan thompson on 14/07/2024(UTC), Carl blue nose on 14/07/2024(UTC), Guest on 15/07/2024(UTC), Jasper40 on 02/08/2024(UTC), The Penguin on 07/09/2024(UTC)
ANDREW FOSTER
Posted: 14 July 2024 14:56:16(UTC)
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High street bond ladder maybe.

6 months, 1, 3, 5, 7 year amounts

Easy to understand, protected and safe.
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2 users thanked ANDREW FOSTER for this post.
Rob B on 14/07/2024(UTC), Historyman on 15/07/2024(UTC)
Rob B
Posted: 14 July 2024 15:04:26(UTC)
#3

Joined: 07/10/2018(UTC)
Posts: 1,705
Tony Peterson;311944 wrote:
I find the statement that "investing is not an option" for the over 75's ill-informed, ageist, patronising, and offensive.

Being over 85 ourselves , investing is still the only option we consider. We've reached a stage where we need to pay for help with cleaning and gardening, but may one day need more expensive end-of-life care.

Securing, by investing, the best income stream from a sensible investment strategy is proving itself, so far, to be totally worthwhile.

You probably need to get over it Tony. This is their specific position. They do not want to invest. Any other advice or just a kick in the knackers?
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5 users thanked Rob B for this post.
You have to change your life on 14/07/2024(UTC), Peanuts on 14/07/2024(UTC), Carl blue nose on 14/07/2024(UTC), Chris1986 on 15/07/2024(UTC), Historyman on 15/07/2024(UTC)
Sara G
Posted: 14 July 2024 15:15:49(UTC)
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Generally I would agree with Tony P, but you say they aren't in the best of health, so, without wanting to be morbid, the upside to investing may be limited in their case.

Given that they are not used to having access to this much cash, I think Fixed term savings or a Gilt Ladder are reasonable options so that they are not tempted to draw out large amounts too quickly. I would be thinking about the tax implications of each option. If their income is low, then they will benefit from the starting savings allowance of £5K in addition to the £1K, but they are likely to exceed that if everything goes into savings accounts. Having some Gilts and Active Savings with Hargreaves Lansdown might work well. They may also want to consider premium bonds, where returns are tax free.

NB I would keep some in an easy access account, unless it's likely that any emergency that arises could be covered by the family.

Will you be managing it for them? They might need help with coordinating what happens to the proceeds of maturing accounts and Gilts.
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3 users thanked Sara G for this post.
Taltunes on 14/07/2024(UTC), Rob B on 14/07/2024(UTC), Tony Peterson on 14/07/2024(UTC)
Tony Peterson
Posted: 14 July 2024 15:17:18(UTC)
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Rob B

I see you've edited your post to blame them for your own earlier assertion which I criticised..

Sensible investment is their only rational strategy as I see it.. But people are entitled to their own prejudices. Good luck to them.






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Julianw on 14/07/2024(UTC)
Rob B
Posted: 14 July 2024 15:25:04(UTC)
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Tony Peterson;311955 wrote:
Rob B

I see you've edited your post to blame them for your own earlier assertion which I criticised..

Sensible investment is their only rational strategy as I see it.. But people are entitled to their own prejudices. Good luck to them.

Great help again. Appreciate that, Tony. FFS. They have no interest in investing. Never have. Never will. They specifically stated they don't want to invest. No blaming going on.
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Historyman on 15/07/2024(UTC)
Rob B
Posted: 14 July 2024 15:34:41(UTC)
#8

Joined: 07/10/2018(UTC)
Posts: 1,705
Thanks Sara and Andrew. Appreciate your thinking and advice.

I won't be managing the money for them so I think a simple mix of NS&I products and high street banking options might be the best way ahead. I'm only trying to help with options.
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Sara G on 14/07/2024(UTC)
Tony Peterson
Posted: 14 July 2024 15:38:55(UTC)
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Rob

Putting money into NS&I products is investing. Don't you understand that?

Abusing me for criticising your original post (which you then edited) doesn't cover the fact that neither they nor you seem to understand the meaning of the word "investment".

They could secure an annual income of around £15K+ from a selection of FTSE 100 stocks- tax free for as much as is held in ISAs. Or a lesser income from an investment in NS&I products. The older you get the more important income becomes. That's our experience.

Or they could splash it on cruises. As I said, good luck to them. And stop being so bloody offensive yourself.
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Busy doing nothing
Posted: 14 July 2024 15:42:51(UTC)
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What about a Guaranteed Annuity over a fixed term. Provides them with a guaranteed income for a set number of years with an option to get their money back at the end of the term, or re-invest again depending on their circumstances at that time.
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Rob B on 14/07/2024(UTC), Tim D on 14/07/2024(UTC), Jay P on 14/07/2024(UTC), Peanuts on 14/07/2024(UTC), Balvenie on 14/07/2024(UTC)
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