£250.000 Pounds to put away!

FijiRacing

Hello all!
My father has sold his house and is going to live in Spain with his partner.
He is 70 years old and getting over major heart surgery,he has a small state pension but after fee,s will have 250 grand to put away.
He is understanderbly worried and is not sure what to do??
He just wants the best non risk return he can get.
He has no wish to access the money for at least 5 years.
Has anyone got any good suggestions??
Should he go to a independant financial advisor maybe??
Any advice is very much appreciated!!
Cheers...

IT_nerd

50K in 5 different bank accounts. Really research the banks you choose to make sure they're not grouped together.
Could probably make 50K in those 5 years before the tax man toutches it..

This is all so your money is protecected under the fscs..

Safest bet, if not the most profitable.

amcluesent

>He is 70 years old and getting over major heart surgery<

Not being morbid, but shouldn't you being thinking about mechanisms to minimise IHT rather than go for a basic savings account?

That said, if he's off to Spain you need to think about maintaining his income interest even when the GBP/Euro exchange rate is oscillating. You could take a punt and stay in GBP on the basis that the Euro zone is collapsing.

GiusCo

amcluesent wrote: »

You could take a punt and stay in GBP on the basis that the Euro zone is collapsing.

Very debatable... Sterling zone (us) appears much more vulnerable than deflating Euro zone

soulsaver

Difficult one, depends on his attitude to risk, how bad he needs access to cash etc. Lots of aspects to consider, I think this is one for a good IFA. Deffo needs to make a will...
His partner you say? Is ... she... much younger? Do tell....

FijiRacing

soulsaver wrote: »

Difficult one, depends on his attitude to risk, how bad he needs access to cash etc. Lots of aspects to consider, I think this is one for a good IFA. Deffo needs to make a will...
His partner you say? Is ... she... much younger? Do tell....

No she's roughly the same age!!
The will is made out to me and my half brother! 30% his and 70% mine.
He has a house in Spain but it has no equity as there housing market is in a slump as we all know!!
At his age he doesn't want risk just the best interest rate and the safest place to put it really!!
We do not need access to the capital until he dies really as then the any money will go to my brother and I!!

bjorn_again

FijiRacing wrote: »

No she's roughly the same age!!
The will is made out to me and my half brother! 30% his and 70% mine.
He has a house in Spain but it has no equity as there housing market is in a slump as we all know!!
At his age he doesn't want risk just the best interest rate and the safest place to put it really!!
We do not need access to the capital until he dies really as then the any money will go to my brother and I!!

Without wishing to appear rude. I am several years under the 70 mark with a heart condition. With £250k I would realistically look at what I want from my remaining years. Rates would be of secondary consideration. I look at how many years I realisticaly have left, divide that into the £250k and consider how I wish to be remembered and use the £250k accordingly. If you are genuinely concerned that you should "leave" something to children or grandchildren give it to the now.
I already figure that in my own circumstances I shall not need a lot of savings in my seventies.

FijiRacing

bjorn_again wrote: »

Without wishing to appear rude. I am several years under the 70 mark with a heart condition. With £250k I would realistically look at what I want from my remaining years. Rates would be of secondary consideration. I look at how many years I realisticaly have left, divide that into the £250k and consider how I wish to be remembered and use the £250k accordingly. If you are genuinely concerned that you should "leave" something to children or grandchildren give it to the now.
I already figure that in my own circumstances I shall not need a lot of savings in my seventies.

I appritiate whay you have said but surely if he can live off the interest and then that capital remains intact for me and my brother when he dies thats better is it not???

ginvzt

You say he has small state pension, wouldn't he appreciate the monthly interest to top-up his pension? It could add £800 per month for him. That is a big help!!!!
You could think of putting part of the money in monthly interest account, so he can use it to enjoy his life more, and the rest in annual/on completion interest account, if he doesn't want £800...

Jonbvn

OP it sounds very much like you are asking what is best for you rather your father?

Given that your father is going to be living outside the UK, tax will be an issue. Professional advice would be a good idea.