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Rob B
Posted: 14 July 2024 20:03:52(UTC)
#22

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Molly M;312002 wrote:
My two pennies worth, from my own experience with my Mum.

Just a broad brush stroke suggestion….I would try not to over complicate things by diversifying too much.

A few years ago, my Mum paid no attention to money at all (Dad managed it all). Since Dad died she has naturally become very interested in understanding how much money she has and where it’s invested. She has also developed a high degree of anxiety about ‘not having enough’ which she didn’t have a few years ago.

So looking to the future, if you sadly only have one in law left and their anxiety increases and they feel more vulnerable, I find it’s really nice to be able to simply explain how much money they’ve got and where it is invested.

It’s upsetting to see them be overwhelmed with doubts or fears, or not understanding their own money and it feels important to be able to be reassuring,

I appreciate your in laws might not develop anxiety in the same way, or may not be interested in the detail, but I guess it’s always possible in the future and can happen as we age and our life changes significantly.

Thanks, Molly. This is more accurate that you may realise.

My m-in-law is very anxious. My-f-in-law is a shadow of his former self due to recent events. He's gone from wanting to move to a standard bricks and mortar home to a ready made new modular home with absolutely nothing to do.

As much as I would love to suggest CTY, FCIT, PNL, CGT, JGGI, and similar, it would all be too much for them get their heads around together as a team; unthinkable if only one was left.

Each of us on here manage our own investments fairly competently. But what about our loved ones that have either taken no interest or get freaked out by numbers or decision making? That's when it gets tough.
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Tony Peterson
Posted: 14 July 2024 21:52:45(UTC)
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Rob

Thank you for explaining a bit more of the context of your concerns.

Our solidarity with your in-laws - both my wife and self have seen off life-threatening cancers through the amazing skills of those in the NHS and the pharmaceutical industry (an industry in which we are invested).

But I find British attitudes to investment almost incomprehensible - and that attitude is shared by many posters on these forums. How is it that in Britain almost everybody can see the sense in owning their own home, and at the same time so many (like your in-laws) refuse to contemplate owning a share in any of the astoundingly efficient corporations which provide, at a cost (profitable to the owners) of the goods and services they consume?

Owning your own home is a very sound investment, as your in-laws have discovered. Owning, in addition, a swathe of income producing shares is the icing on the cake of prosperity. A secure and adequate income is vital for those facing the challenges of age - and that is best provided by equity investment. Not letting your savings sleep.

My wife and I, in our working lives did not earn in total anything near the "life changing £175k" your in-laws may have available. Yet, if we both conked out tomorrow, our estate would be over £3M. Simply through investments. As well as losing at soccer and rugby, this has to be the national home of losing at finance.
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eain
Posted: 15 July 2024 06:20:37(UTC)
#24

Joined: 29/10/2012(UTC)
Posts: 321
[quote=Tony Peterson;312008]Rob


£175k is not much to earn over a lifetime!!!

Thank you for explaining a bit more of the context of your concerns.

Our solidarity with your in-laws - both my wife and self have seen off life-threatening cancers through the amazing skills of those in the NHS and the pharmaceutical industry (an industry in which we are invested).

But I find British attitudes to investment almost incomprehensible - and that attitude is shared by many posters on these forums. How is it that in Britain almost everybody can see the sense in owning their own home, and at the same time so many (like your in-laws) refuse to contemplate owning a share in any of the astoundingly efficient corporations which provide, at a cost (profitable to the owners) of the goods and services they consume?

Owning your own home is a very sound investment, as your in-laws have discovered. Owning, in addition, a swathe of income producing shares is the icing on the cake of prosperity. A secure and adequate income is vital for those facing the challenges of age - and that is best provided by equity investment. Not letting your savings sleep.

My wife and I, in our working lives did not earn in total anything near the "life changing £175k" your in-laws may have available. Yet, if we both conked out tomorrow, our estate would be over £3M. Simply through investments. As well as losing at soccer and rugby, this has to be the national home of losing at finance.











[/quote]
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Tony Peterson
Posted: 15 July 2024 07:15:44(UTC)
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eain

No, it wouldn't be now. But it didn't seem so tiny when I stopped working in 1996 or my wife in 1980.

That's what inflation does. For my first full year teaching in the UK (1971) I was paid a little over £1K.

And inflation is yet another reason why keeping your savings idle will see them drain away. Whatever age you are.
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Tug Boat
Posted: 15 July 2024 08:52:14(UTC)
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£18 a week in 1976. Thought that was a good wage.

Would buy you three pints today.
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Molly M
Posted: 15 July 2024 18:16:12(UTC)
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[quote=Rob B;311983]

I was unaware of means testing for Pension Credit. I will add that to the discussion list.



Hi Rob, one more thought, it’s not investing as such, but relevant to securing a regular income for your in-laws, which might allow their savings to be untouched for longer.

When the time is right, it might be worth checking whether your in-laws are claiming Attendance Allowance, in addition to their state pensions.

They won’t be eligible if someone in the family is claiming Carers Allowance to look after them, but otherwise it’s a useful benefit to help people over state pension age, who are in poor health. It’s under claimed, as people either don’t know about it or tend to assume they won’t be eligible. In fact, there’s no means testing involved.

It’s paid every month, along with the state pension and so it’s a very handy boost when regular, reliable income is needed. It’s also not taxed.

https://www.gov.uk/atten...e-allowance/eligibility

Better explanation of how it works in practice here:
https://www.ageuk.org.uk...s/attendance-allowance/
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