What to do with £50k??

MinMoz

Posting on behalf of my Dad.

He has £50k and is looking to use the money to supplement his pension. Barclays have recommended a product that guarantees him 7.5% over 5/10 years and his capital will be safe provided the stock market doesnt drop a further 40% (I am of the opinon that anything could happen so cant rule this out).

His ISAs are maxed out so that is not a consideration. Neither of us have experience here so where else would you kind and knowledgeable people recommend we look for other options??

Many thanks.

dunstonh

Barclays have recommended a product that guarantees him 7.5% over 5/10 years and his capital will be safe provided the stock market doesnt drop a further 40% (I am of the opinon that anything could happen so cant rule this out).

strutured products are generally rubbish. Bank salesforces love selling them as they are easy to sell by low skilled sales reps to low knowledge consumers.

where else would you kind and knowledgeable people recommend we look for other options??

Dont see a bank sales rep would be the first thing. See a proper financial adviser.

Apart from that, there is no real way to narrow it down any more as we dont have the facts available.

Primrose

I would seriously recommend not getting your Dad tied up with ANY deal offered by one of the banks for its own products. They are almost always a poorer deal than could be found on the open market. I don't know your Dad's age, but any product which requires him to tie up your cash for between 5 - 10 years is very inflexible, especially if his circumstances change.

gozomark

can he afford to lose 40% plus of his capital ?

jem16

gozomark wrote: »

can he afford to lose 40% plus of his capital ?

How exactly will that happen when the capital is guaranteed?

Not that I'm advocating taking this product as previous posters have said it's rubbish.

gozomark

his capital will be safe provided the stock market doesnt drop a further 40%

jem16

gozomark wrote: »

his capital will be safe provided the stock market doesnt drop a further 40%

I may be wrong but these products usually guarantee your initial deposit back. What varies is the amount you will get over and above the initial deposit provided the stockmarket does not fall by 40%.

See here;

http://www.barclays.com/international/ps_structured_deposits_our_offer.html

gozomark

the product you link to doesn't guarantee 7.5%, but either 10% (1.92% AER) or 30% (5.39% AER) - its also offshore (which may or may not be relevant in this case, but the fact he's mentioned ISAs suggests its not this product)

without knowing the exact product the OP is talking about, its difficult to go on anything other than his statement

his capital will be safe provided the stock market doesnt drop a further 40%

opinions4u

I'd see an IFA if I needed an income from that sort of money.

A lot will be determined by his attitude to risk, but retirement is also a stage of life where an individual's tax situation can become more complex and the wrong decisions can waste a lot of £££s.

jem16

gozomark wrote: »

the product you link to doesn't guarantee 7.5%, but either 10% (1.92% AER) or 30% (5.39% AER) - its also offshore (which may or may not be relevant in this case, but the fact he's mentioned ISAs suggests its not this product)

No I realise it's not the same investment - only used it as an example.

without knowing the exact product the OP is talking about, its difficult to go on anything other than his statement

his capital will be safe provided the stock market doesnt drop a further 40%

That's true.

However I took it to be not exactly as he wrote it but more;

"Barclays have recommended a product that guarantees him 7.5% over 5/10 years and his capital will be safe provided the stock market doesnt drop a further 40%"

It sounds like the typical guaranteed equity bond and something to avoid.

Aegis

Spam by leonle reported.