large lump sum

Louisa_Jane_2

Hi, my parents have just downsized their house and now have £300,000 in the bank. They have asked me to ask on here what suggestions or recommendations people might have to invest/save the money (I can think of plenty, but probably not what they're after!!) Many thanks

dunstonh

About 10,000 or so options possible based on what you have said.

You are going to have to help narrow down the options a bit. Things like taxation, aims, timescale, risk etc all need to be considered.

Deemy

Louisa_Jane wrote:

Hi, my parents have just downsized their house and now have £300,000 in the bank. They have asked me to ask on here what suggestions or recommendations people might have to invest/save the money (I can think of plenty, but probably not what they're after!!) Many thanks

Wow thats a nice stack .... fancy a poker game ?

seriously, though they need to provide more information on what they intend to do ? live off it or not ?

But given the level of info thus far, the following asset allocation -
15% stocks / investment trusts portfolio - Long-term
40% in fixed interest bonds - none floating
15% in index linked goverment stock. - good inflation proofing.
30% in instant access accounts. - May need the cash

Sofa_Sogood

Deemy wrote:

Wow thats a nice stack .... fancy a poker game ?

seriously, though they need to provide more information on what they intend to do ? live off it or not ?

But given the level of info thus far, the following asset allocation -
15% stocks / investment trusts portfolio - Long-term
40% in fixed interest bonds - none floating
15% in index linked goverment stock. - good inflation proofing.
30% in instant access accounts. - May need the cash

If Louisa Jane was my daughter, which she isn't Deemy, (but I had to look twice and only realised it wasn't when she mentioned the 300K that's already in place, what would be the answer in reverse?

If that makes sense?

Or is that another question for another topic?

Deemy

Sofa_Sogood wrote:

If Louisa Jane was my daughter, which she isn't Deemy, (but I had to look twice and only realised it wasn't when she mentioned the 300K that's already in place, what would be the answer in reverse?

If that makes sense?

Or is that another question for another topic?

Oooh, your asking me one of those trick questions arn't you

My advice - write a will !

dunstonh

Deemy. How have you built an asset spread without knowing their attitute to investment risk, timescales involved and aims/goals?

cheerfulcat

Hi, Louisa Jane,

What do your parents need from this money? Will they require an income? Is there a large known liability in the offing ( school fees, weddings,retirement, elderly parents of their own to look after )? Is inheritance tax an issue? Are they looking for growth, or just security of capital? Will they need access to the capital, or would they be happy taking interest/dividends, with the capital tied up? Do they already have investments? Do they have pensions and ISAs? Are they relaxed about taking a risk, or are they risk-averse? Would they be happy actively managing their own investments? Are they prepared to pay someone else to do it? There's quite a lot to think about. If you come back with some information along those lines, you'll get some pointers.

whiteflag_3

Deemy wrote:

But given the level of info thus far, the following asset allocation -
15% stocks / investment trusts portfolio - Long-term
40% in fixed interest bonds - none floating
15% in index linked goverment stock. - good inflation proofing.
30% in instant access accounts. - May need the cash

Unbelievable, :eek: what info....all we know is they have £300 k in the bank.

What about

income/expenditure details,
tax situation,
other assets/investments,
health,
age
inheritance tax position,
gifts,
attitude to investment risk
timescales etc etc

Louisa Jane , this site is not the place for advice of this nature as all of the above need to be considered.

I would suggest you find a good IFA who will lead your parents through the maze. Ask friends / relatives if they know an IFA who they have dealt with for a long time and trust.

True IFAS will offer a fee or commission payment option. IF they start talking commission in the 5% range walk away. Hope this helps

EdInvestor

Try playing around with this asset allocation calulator

It will adjust for age, attitude to risk, amount of funds etc.

In the UK, you can often subsitute commercial property funds for corporate bond funds, they have around the same level of risk.

If the money is meant for living costs over their retirment, IMHO Deemy's suggestion is too conservative for the long term.They need to have more in the stockmarket so as to beat inflation and enable the money to grow.

whiteflag_3

[

If the money is meant for living costs over their retirment, IMHO Deemy's suggestion is too conservative for the long term.They need to have more in the stockmarket so as to beat inflation and enable the money to grow.

[/QUOTE]


EDINVESTOR With respect, how, if you know nothing about any circumstances can you say deemy's suggestion it too conservative?.

I thought after Pals post on the other board last week we might see a bit more common sense in posting generally.

EdInvestor

What did I say WF?

If the money is meant for living costs over their retirement....

OK?

If the money isn't for this, then one might recommend an upmarket cruise on the new Queen Mary...

Or a buy to let flat on the south coast they could retire to later...