100K to save

Options
marymaryquite
marymaryquite Posts: 1 Newbie
in Savings & investments
I have 100K to save. I am retired and can live on my pension, with no mortgage or debts and 30K in ISAs. I would like to be able to give tidy house-deposits to my 2 children (mid 20's and financially independent ) when they are ready to buy, but that could be another decade. I am financially risk averse. what do you suggest??

Comments

  • bowlhead99
    bowlhead99 Posts: 12,295 Forumite
    Name Dropper First Post First Anniversary Post of the Month
    Options
    If you

    Don't need the money, but

    Would not be willing to invest it in something that generates a probable real return by taking investment risk which could deliver a negative result if the investment period is not long enough, and

    You want the money to go to your children who are both mid 20s and financially independent, and

    You do not know exactly how long it will be before one or both of them is ready to buy a property.

    Then the sensible solution seems to be to give the money to your financially independent mid 20s children and let them save and/or invest it in accordance with their needs. Which will not necessarily be the same as your needs or level of risk aversion, but ultimately it is they who are going to use the money on their own needs because you don't want or need it for yourself.
  • westy22
    westy22 Posts: 1,105 Forumite
    First Anniversary First Post Combo Breaker
    Options
    ^^ as above.

    And giving it to them now starts the 7-year Inheritance Tax Potentially-Exempt Transfer clock ticking as well which means if you survive for 7 years after making the gift it becomes IHT exempt.

    In your position that is what I would do.
    Old dog but always delighted to learn new tricks!
  • Mogley
    Mogley Posts: 250 Forumite
    Options
    In my mid 20s my parents were kind enough to gift me some money to be used only as a deposit for a home or to pay off my student loan. I was financially independent and used this gift as soon as I could to buy my first house due to the ever increasing house prices. This worked out very well for me.
    So in my experience, the sooner you tell them and gift them the money, the quicker they can make their own decision about how the money would be best used for them. Maybe encourage them down your preferred path in doing so.
    In the meantime I think National Savings and Investments would be the best place to put £100k until the time arises.
    You should pay attention to the needs of the moment - otherwise there is no future. But to ignore the future is foolish - living solely for the moment leaves nothing for when the next moment arrives.
  • xylophone
    xylophone Posts: 44,412 Forumite
    Name Dropper First Anniversary First Post
    Options
    Each of them has opened a HTB ISA/will open a LISA?

    Gifting the money now will enable each to save/invest in the above and in the mean time take advantage of Personal Savings Allowance.
  • bobobski
    bobobski Posts: 771 Forumite
    First Anniversary Name Dropper First Post Chutzpah Haggler
    Options
    In waiting for the queen of 6-figure savings (Tara) to come along and chip in :)
This discussion has been closed.
★ ★ ★ Meet your Ambassadors

Categories

  • All Categories
  • 343.2K Banking & Borrowing
  • 250.1K Reduce Debt & Boost Income
  • 449.7K Spending & Discounts
  • 235.3K Work, Benefits & Business
  • 608K Mortgages, Homes & Bills
  • 173.1K Life & Family
  • 247.9K Travel & Transport
  • 1.5M Hobbies & Leisure
  • 15.9K Discuss & Feedback
  • 15.1K Coronavirus Support Boards