Investing after berievement

atush

thick_mike wrote: »

I know this is good advice, but I am naturally wary of paying someone to do something I could sort out my self (this probably explains the state of the plumbing in my house!).

that is a good analogy- you can't sort it out yourself as you don't know what you are doing.

I'd be really wary of putting the money into stocks and shares due to the chance of losing it.

Tha above is a perfect example. Over time (and we re talking 5-10 years or more) at least some if not the majority of your money should be in equities (incl andy money you put aside to the children) as over longer time periods equities outperform cash, property and gold. And Cash carries risk too- which you don't seem to be aware of. Where is your money right now? In your current acct? Or in a savings acct at 1%?

Basically, even at 3%, it is losing ground to inflation. So your money is losing value like water dripping from a tap.

While you could educate yourself and 'sort it', that takes time. So paying a professional and then learning so you can carry on yourself would be wise.

So, pay off debt (if you have any apart from the mtg you paid off).

Then, see to your pension. If you don't have one, open one. If you do have one, consider paying in a lump sum or increasing your contributions monthly.

Make any repairs and replacements to the house and any cars.

Open Junior Isas for your boys, and contibute to them yearly until they have a university fund. Or open fixed rate bonds for the same purpose.

Do you fill your cash ISA each year? If not, start now. And invest in a S&S isa as well. This 5K+ can be your 'learning fund' where you can practice investing. Chosing funds etc. You learn by education, but also doing. When the boys are 16, they can have a cash ISA as well as a Jisa.

Then, put the rest, 85K per account into savings accts getting 3% or more. So at least you are treading water while you decide what to do with the money.

But I strongly urge you to take yourself and the boys on a nice holiday as well. To maybe put some smiles on your faces, and start making new memories. I am sure your wife would approve ;-)

Linton

thick_mike wrote: »

I know this is good advice, but I am naturally wary of paying someone to do something I could sort out my self (this probably explains the state of the plumbing in my house!).

The simplest thing to do to provide as good a return as reasonably possible without share investments could be to set up 5 year fixed rate deposit accounts, one maturing each year. You could get perhaps 4.5% interest which would of course be subject to tax. Assume you are a standard rate tax payer now and would continue to be after the £13.5K interest you would be earning each year gives a tax charge of £2700 per year.

Spending the same amount of money that tax could cost you in a year as a one-off payment to an IFA could enable you to reduce the tax significantly, possibly to zero, indefinitely with a better underlying return.

Any share investment would be spread broadly across a very wide range of industries and countries. So the chance of losing it all is infinitesimal - your friend who lost his trust funds in one bad investment was clearly very poorly advised, assuming he was advised at all. If the world economy collapsed in that way what do you think your £300K would actually be worth in real terms??

And of course only a portion of your moneys would be invested in shares - one could envisage a substantial amount being held in government and corporate bonds.

Newbie2saving

atush wrote: »

Then, see to your pension. If you don't have one, open one. If you do have one, consider paying in a lump sum or increasing your contributions monthly.

Do you fill your cash ISA each year? If not, start now. And invest in a S&S isa as well. This 5K+ can be your 'learning fund' where you can practice investing. Chosing funds etc. You learn by education, but also doing. When the boys are 16, they can have a cash ISA as well as a Jisa.

But I strongly urge you to take yourself and the boys on a nice holiday as well. To maybe put some smiles on your faces, and start making new memories. I am sure your wife would approve ;-)

Atush, good advice, I did exactly that, putting in a small pot into a S&S ISA to learn the ropes, with the idea I one day could do it all myself, however it is a lot harder than it looks, thankfully I only put in what I felt I could risk within my ISA.

I also topped up my company pension (as I had time off) with the 'free money the company matched this was well worth it.

Sometimes a holiday seems like a good idea, but often it is so, so difficult to do without your loved one, even a weekend away at Centrparcs so the boys can do all the activities (& you, great bonding), then build up to a 'big' holiday, well that has been my plan of attack!

PS. I also watch this board frequently, it has been really helpful on my slow learning curve.

atush

It isn't hard to go on holiday with boys (or children) aged 10-14. I do it all the time (although as a woman perhaps I have genetic holiday skills lol). You certainly can expect them to roll thir own suitcase. Centerparks is a good start- but why not Alton towers or somewhere that Tweens like? they even have a waterpark now.

Am taking my 2x 17 yr olds to Jersey next week, and Florida in June after their exams. Where apparently parasailing and Major league baseball are in my future lol. Not my idea of a holiday, but it is their holiday so I am going with the flow.

xylophone

At this very sad and disorientating time, it is important (as another poster has said) to do nothing in haste.
Why not do as you have suggested yourself and split the money (after having filled your cash ISA for the year) into four accounts at the best rates you can find, and leaving it to look after itself for a few months while you and your children start to make your life together without Mother.

I tend to feel that ordinary life (home, school, a meal out at the weekend) might be better than rushing off on holiday where, as you say, you face feeling even more bereaved when you are overcome by the "if only Mum were here" misery.

Give yourselves until after Christmas, then look at your situation again?

Newbie2saving

atush wrote: »

It isn't hard to go on holiday with boys (or children) aged 10-14. I do it all the time (although as a woman perhaps I have genetic holiday skills lol). You certainly can expect them to roll thir own suitcase. Centerparks is a good start- but why not Alton towers or somewhere that Tweens like? they even have a waterpark now.

Am taking my 2x 17 yr olds to Jersey next week, and Florida in June after their exams. Where apparently parasailing and Major league baseball are in my future lol. Not my idea of a holiday, but it is their holiday so I am going with the flow.

I meant when you are in the middle of grief it is so hard to even function, nevermind planning something that is supposed to be a family event (and seeing lots of happy people), all the firsts are really hard, not always from a practical perspective, but emotionally.

Good idea re Alton Towers! Sure your boys would enjoy a treat like that. You are right atush, you roll with their holiday wants & needs which maybe different to our own!

Sorry Mike, digressing slightly from money issues, hope you don't mind.

thick_mike

Linton wrote: »

The simplest thing to do to provide as good a return as reasonably possible without share investments could be to set up 5 year fixed rate deposit accounts, one maturing each year. You could get perhaps 4.5% interest which would of course be subject to tax. Assume you are a standard rate tax payer now and would continue to be after the £13.5K interest you would be earning each year gives a tax charge of £2700 per year.

Spending the same amount of money that tax could cost you in a year as a one-off payment to an IFA could enable you to reduce the tax significantly, possibly to zero, indefinitely with a better underlying return.

Fair point.

thick_mike

Newbie2saving wrote: »

Sometimes a holiday seems like a good idea, but often it is so, so difficult to do without your loved one, even a weekend away at Centrparcs so the boys can do all the activities (& you, great bonding), then build up to a 'big' holiday, well that has been my plan of attack!

PS. I also watch this board frequently, it has been really helpful on my slow learning curve.

Yes, I think a big holiday would be too much for me at the moment. I'm struggling to keep the fridge full, let alone organising a holiday!

thick_mike

Newbie2saving wrote: »

I meant when you are in the middle of grief it is so hard to even function, nevermind planning something that is supposed to be a family event (and seeing lots of happy people), all the firsts are really hard, not always from a practical perspective, but emotionally.

Good idea re Alton Towers! Sure your boys would enjoy a treat like that. You are right atush, you roll with their holiday wants & needs which maybe different to our own!

Sorry Mike, digressing slightly from money issues, hope you don't mind.

I think you know exactly where I am.

thick_mike

xylophone wrote: »

At this very sad and disorientating time, it is important (as another poster has said) to do nothing in haste.
Why not do as you have suggested yourself and split the money (after having filled your cash ISA for the year) into four accounts at the best rates you can find, and leaving it to look after itself for a few months while you and your children start to make your life together without Mother.

I tend to feel that ordinary life (home, school, a meal out at the weekend) might be better than rushing off on holiday where, as you say, you face feeling even more bereaved when you are overcome by the "if only Mum were here" misery.

Give yourselves until after Christmas, then look at your situation again?

Yes, I think I've got more important things to do this year. It's probably more important to get birthdays and Christmas right rather than perfecting tax efficiency.