£40k - What do with it?

Progress

Hey guys and gals,

Just after a few ideas.

My grandfather has has £40k in savings (ISA's) pretty much doing nothing at the moment. Think he has it in Lloyds TSB ISA earning 2% or something.

Just wondering if you have any ideas of how he can best benefit from this cash.

In all honesty he doesn't need it for anything at the moment as he is mid 70's with a good pension so it's just sitting there.

Ideally he wants to have access to it (just in case of whatever)

Any ideas would be appreciated..

(I will also be speaking to an FA also, however some opinions and ideas would be well received)

Thanks in advance

missile

Spend it, there are no pockets in a shroud

Progress

Well I would like a new car and a property (hehe)

In all seriousness though any ideas would be good.

Rollinghome

Mid seventies and he's got it all in a cash ISA. Sounds good to me. What did you you have in mind apart from finding an ISA with a slightly better interest rate?

ed123_2

...wine, women & song.....and he could waste the rest of it........<:-)

Progress

Well,

Lets say he wasn't averse to taking a risk. What would be your opinion?

I think I may just need to have a word with him about it all. I guess if he doesn't have any use for £40k then he won't have any use for more cash either way.

All opinions welcomed.

Jake'sGran

My position is similar to your Grandad's but more so and as I have a problem with my heart (can't get insurance) I have been giving more away to my grandsons etc. Not for frittering but to help with Uni and buying a car.

It's surprising when travelling is almost out of the question and we don't fancy having builders in changing the house around, don't need more clothes etc., that money is nothing to get excited about. If he enjoys travelling there are some lovely places to visit and he could take you. First class to Oz would be great. Pto Pollensa in Majorca is quicker and considered the most pleasant resort on the island.

Your Grandad might be interested is buying some shares. This has become an interest for me, something to check every day. If he is not interested in the Stock Market what does he want to speak to a FA for? (There is an excellent one who posts on here but he is not allowed to give advice) One thing I would do is take it out of Lloyds immediately as there are much better rates elsewhere. Even Tesco are offering a better rate than the one he is getting and with instant access. Egg is even better if he wants access but maybe he does not want to have an Internet account. If none of this is of interest I'd put it in a fixed rate bond (he can get 5%) and then leave it to you.;)

Progress

Thanks Jake'sGran,

Indeed in the exact same situation as you.

I think i'll just move it out of Lloyds for him and ask him what he wants to do with it.

I'd feel bad asking for or having any of it in all honesty.

Thanks for the advice folks..

Rollinghome

Progress wrote: »

I think i'll just move it out of Lloyds for him and ask him what he wants to do with it.

If you just move it out of a Lloyds ISA you'll lose the entire tax-free protection on his nest egg. To retain the tax-free status you need to first find the ISA account you want then ask the provider to ask Lloyds to transfer his ISA to them.

Jake'sGran

Rollinghome wrote: »

If you just move it out of a Lloyds ISA you'll lose the entire tax-free protection on his nest egg. To retain the tax-free status you need to first find the ISA account you want then ask the provider to ask Lloyds to transfer his ISA to them.

Yes, sorry, I forgot to mention that but if his income is well below his tax free allowance cash ISAs may not be worth having. He and I are about the same age and we can have over £9000 per annum tax free. Depends how much his pension is really.

Rollinghome

Jake'sGran wrote: »

He and I are about the same age

Jake's Gran, you're very on the ball for your age. Good for you. There might even be hope for me in a few years time.