Investing an inheritance

bendix

That isnt what I meant, and you know it.

Sympathies for your less etc etc, but while you shouldn't be celebrating your inheritance, you shouldn't be stressed by it either.

Judging by your speed to take offence, I would advise you're in no fit mental state to even think about it right now. The money isn't going to disappear. Get your mourning done, get your head in order and then worry about it.

Sceptic001

Unlike dunstonh I am not an IFA, but I would agree with his advice. Don't take advice from a bank. Look for an IFA you feel confident about. You can always ask here if the advice sounds good before acting on it...

juicyjude

abloke I would totally reiterate what you have been told on here, dont take advice from a bank, especially Santander! Take your time, you are probably not in the right frame of mind at the moment to make many major decisions about money. I have been in a very similar position to you, and I understand where you are coming from. A mixture of cash ie building society fixed rate bonds, and ISAs if you havent used your allowance up this year in either investment bonds or saving bonds and then definately an IFA who you can build up a relationship with. It took me many months of thinking about investments and was scared stiff about investing, but I am now seeing that it is the only way forward with a reasonable amount of money. Spread your risks, I still have quite a bit of money in cash though, dont want to risk the lot. Hope this helps a little, and I am sorry about your loss. It is a difficult time!

Reaper

I'd second (or is it third) the IFA suggstion. And like Dunstonh says ask the IFA to be on a fees basis. Commission basis (as the bank advisor is probably on) is a hidden charge that can cost you dear.

Ignore the advice to avoid IFAs. The amount the advice costs you pales into insignificance compared to getting it wrong now. While you can DIY it takes a lot of effort and research which I sense you are not up to at the moment.

juicyjude

Also if you have an IFA and you have a problem or something you dont understand with your investments they can explain things to you. Mine is excellent and we have built up a good relationship, which I feel is essential when you are trusting someone elses judgement with regard to your money.

abloke36

Thanks everyone.
I really am scared about this investing lark and admit i HAVE NO REAL INTEREST in investing but do need to make a good decision. Money for me in the past has been for enjoying and spending and I have made plenty of mistakes.

Ironically the biggest I have ever made was listening to an Independant Financial Advisor in the 1980's: The man who sold me my endowment mortgage. I lost big time.

juicyjude

We did too, but moving on I too was scared silly about investing and had no real interest in investing either but my sister is an accountant and she had an IFA who was actually who my mum used as well and she persuaded me us to go and see her. I dont understand a lot, but keep looking on trustnet to see how my investments are doing and it all seems positive at the moment but am in no hurry to invest any more money at this moment in time. Perhaps next April I will invest in further ISAs, will have to wait and see. You may find once you start to invest and see some return you may want to go further.

dunstonh

Ironically the biggest I have ever made was listening to an Independant Financial Advisor in the 1980's: The man who sold me my endowment mortgage. I lost big time.

May not have been. Endowment mortgages were typically 10-15% cheaper than repayment mortgages. If you bought before 1985 you had LAPR tax relief making it even cheaper (you kept it even when it was abolished for new plans). You may also have benefited from full MIRAS when that was still around.

When you work out the monthly cost saivings of a typical endowment of that period, many could still come in with £6000 odd shortfalls and still end up better off than being on a repayment mortgage. (if you had LAPR then that could be more)

You also need to remember that at that time, the media were pro endowment as were the consumers Association (Which?). Something they conveniently ignore now. This site, had it existed then, would also have had a best buy on endowments article. Hindsight is great. Predicting the future is nearly always wrong.

Things change. Endowments didnt start failing until the millennium. The events that caused it would not have been things that were predictable in the 80s (IFAs also didnt exist until 1988 - they came into existence with polarisation, although most at the time had traded under a different regime prior to that).

Products of that era were low quality and expensive by todays standards. They were inflexible and couldnt adapt to the changing world. Modern plans are flexible and easy to change.

We dont all drive round in 1980s cars today. You wouldnt even bother comparing the quality of a 2010 car with a 1980s one. The same applies to financial products and the quality of advice.

abloke36

Trust me my endowment was a disaster !

ampersand

Just an impartial observation to abloke36 -
Over and again dunstonh's helpful, judicious, courteous and well-written advice shines through.. . .and you'll find it is consistently so wherever he/she posts.
Please take it on board.