Investing a 40k inheritance trust fund

WindChim

hi

Please can someone point me in the right direction for investing a 40k inheritance trust fund.... it will be paid to my husband and sister in law when my mother in law dies, and in the meantime, she is entitled to earn any interest on the money.

We need to get a happy medium between earning her some interest, but also protecting the sum for the future, and really have no idea where to start - please can anyone give us some advice?

thanks
Windy

isofa

Do you want to invest or save - two very different avenues?

WindChim

hee hee... that shows how little we know about this

I would guess save, as we want to safeguard it for the future... investing could mean we could lose it.

thanks
Windy

dunstonh

I would guess save, as we want to safeguard it for the future... investing could mean we could lose it.

Although the payment of interest out of the savings would see the money guaranteed to lose value in real terms. Currently at a rate of around 5% a year. Hence why investment options are often considered.

When you draw the money as interest out of the capital, then every option has an element of risk. There is no risk free option (unless you start holding some interest back to increase the capital value).