Saving lump sum of pension

moneypenny007

Hi all,

I am asking a question of behalf of my dad.

He has retired and has a lump sum of 75K to invest but has no idea where to start.

His financial advisor who dealt with his pension through his work has advised a lump sum of 50K in a 5 year lock in account, he was talking about 11% but that seems high!!, and 25K in a "WRAP" savings plan which will give him access to the money within 7 days if it is needed.

He has asked me for advise but savings not being my thing I was wondering if the more knowledgable members of the forum could offer there tuppence worth.

Thanks

Andy

ukmike

Did anyone advise NOT to take the lump sum?

Jake'sGran

The £50,000 is the amount covered by the guarantee if anything goes wrong with the bank but there are some banks not included in the scheme. I believe National Savings is one. The money needs to be spread around as £50k all in one place may suffer if interest rates start to rise. He can get between 4/5% as a fixed rate at the moment.

Many people are now buying shares with good yields but you need to do some
research to find those regarded as "quality".

Lloyds TSB have an account called Classic +
Vantage there is a long thread about this a few pages back. You can open three of these accounts. They require £1000 to be deposited every month but you can do this by doing standing orders between the three every month. You must have £5k to £7k in each account. The account pays 4%. It will be easier to understand if you have a look at the many posts in the thread.

Also, have a look at Fidelity as they have some good funds and are a most reputable company.

Jake'sGran

The thread I mentioned in about 10 below this.