Sold- how to invest?

pink_chilli

Hi,
I'm in over my head. :eek:
My Granda (71 years old, retired and reciently widowed) has just sold his flat ( he'll get C. £108,000 after fees) and is due to finalise in a couple of days/ a week, I have already done some research but frankly I'm only used to saving £30 or £50 here and there, not dealing with £100,000+ :think:



This is what the situation is,

• He has £1000 credit card, £1000 overdraft. (funeral debts)
• He is moving to our family house so won't need to keep anything by for rent, only to pay towards bills and food (about £150 a month)
• He wants to travel (about £5000 max. a year for the next 2-3 years, then I think he'll reduce it a bit).

I'm really worried because we have a very big family and unfortunatly his selflessness and generosity hasn't rubbed off on all of them and I fear the wolves will soon be at the door:mad:, BitterlySweetly he wouldn't turn them away. He's worked soo hard all his life and I just want to see him able to enjoy the fruits of his labour.

*It makes me soo mad, my paternal grandma has been left in poverty thanks to my delightful uncle- I just don't understand how people like that can sleep at night*:mad:

Also today he went into the bank to change his address and they tried to flog him everything under the sun, thankfully I've been through things with him and I think he wants me to advise him, I just need to feel a bit more confident. However he is the kind of person to grab the first appealing offer to be shown to him, despite there being better ones out there. :wall:



What I've come up with is;

• First pay off credit card and overdraft with a good amount of credit in current account, but not so much that he goes through it too fast.
• Put as much as possible into an ISA account asap. Am I right in thinking it's £12,000 total? (which ever has highest rate when sale is finalised) Would he be able to give some to trustworthy relatives and have then open an ISA or is that classed as laundering? :huh: He may well do that as a gift not expecting a return. We haven't discussed it all thoughroughly yet.
• Put some into saving accounts, I've told him Santander is good but he wants to avoid foriegn banks becuase of all the collapses over the recent past, even if he put £5 in there and put a few larger sums in the british banks. I will advise spliting it between a 5 year (this will be hard as he is funny about his own mortality since nan died a year ago- which is understandable) and shorter term savings accounts. The problem is the British banks aren't all that competitive (or have I read it wrong??) :huh:
• He also wants to get some premium bonds, I've explained the odds to him but he wants to so will probably put some in but I think I'll advise it's a small amount and a savings account gives a much better return. He's a gambler and loves the thrill. :wall:

That's all I can think to advise him of right now. Please I would really appreciate it if anyone who knows their onions could either directly advise me or point me in the direction of an organisation I could make an appointment with to ask some questions. :A

Many Many Thanks,
Claire.

missile

I assume your granda had asked for your help?

You seem to be on the right track. May I suggest LTSB Vantage. Be careful with Santander T&Cs and charges. I would avoid savings/investments in a.nother's names, unless he genuinely wants to gift the money? Premium bonds may not be such a bad idea, if the alternate is feeding the money grabbing relatives. You might want to consider an annuity.

poppysarah

Fixed term bonds that can't be cracked open stop the greedy piglets twisting arms.

tyllwyd

I think you might get a few more responses on the savings and investments board. You need to have a good think, because although your grandad is in good health now, things could change quite quickly, and he might need money to pay nursing home fees, or even if he is able to stay at home, you might need to pay for additional help looking after him or for adapting his accomodation to meet his needs. So if he spends too much now, that could mean a considerable extra burden for you further down the line. I think you should get him along to a financial adviser (but not to sign anything on the spot, and tell him to bring all the information away to think about!) He also needs to know about how different options might affect his entitlement to pension/his tax situation etc.

theartfullodger

a) Spread the money into 2 or 3 accounts.. that simply spreads the risks of problems/incompetence/stupidity-by-staff/loosing-account-details... I know someone who when asking for their £45k initally was very firmly told (C&G) that there was no record of the account at all (!!)
b) Grandpa to realise is he goes into a home within 7 years (current rules) then that nice Mr cameron will come after the house proceeds...
c) But I hope he decides to live a little and spend some money on himself & having a bit of fun .. (((Arrrrrrrrrrgggggggggghhhhhhhhhhhhhh that's heresy here on MSE, were all supposed to hold onto every penny ...)



Best of luck!

Artful

Nosht

National Savings & Investments are secure, either 3 or 5 year terms are available.
Premium Bonds, poor return but better than the lottery.

N.