In need of advice

Hooloovoo

Jegersmart wrote: »

I am pretty sure that many spend at least 10% of that on coffees every month?

Well I think that pretty much sums up the difference between you and I

I completely agree with McKneff in post #5.

£300 plus extra for food should be more than plenty, even including council tax, electricity and gas, car etc. I'll be generous and call it £450 per month. That's a massive budget for someone that doesn't have to pay rent or a mortgage (or soon wont have to once the house is sorted).

And I'm not even talking living like a hermit.

grey_gym_sock

Hooloovoo wrote: »

I am pretty sure that many spend at least 10% of that on coffees every month?

Well I think that pretty much sums up the difference between you and I

what are you saying? are you 1 of those .......... tea-drinkers?

Rollinghome

There's something of a conundrum for lots people in your mother's position of approaching retirement age and having a limited sum to rely on for an income.

The best returns demand a level of risk but the older you are and the more dependent on the sum you have for income then the less risk you are able to take. It's much easier to take risk when you are young with plenty of working years ahead to financially recover from the unexpected.

I'd suggest the best starting point is to read a book such as "Save and Invest" which is published by Which? (the Consumer Association). From libraries or from Amazon for £8.25 here .

It should help you understand all the options and is easy to read. You could find most of the advice on the internet but by using the book you'll know that the content can be relied upon. You'll then be in a better position to judge the quality of any subsequent advice you get.

Hooloovoo

grey_gym_sock wrote: »

what are you saying? are you 1 of those .......... tea-drinkers?

[:rotfl:]

Yes

But I take my own tea bags and milk to work ... the same as I would if I were one of you smelly coffee drinkers. Who seriously pays a fiver for a cup of coffee? Even if it does come in a two litre bucket.

gadgetmind

Hooloovoo wrote: »

But I take my own tea bags and milk to work ...

We have free tea and coffee at work and free cakes once a week.

Anyway, the OP first needs get that pension statement, and to do a cash flow forecast and this will establish what degree of risk they need to take. They may not need to go any further than cash and bonds, but a smattering of equities can both increase return *and* reduce volatility in such a portfolio.

atush

You will find she has more state pension years than you think. If she worked at all, and then you can add home responsibilities protection when years are added for when she stayed home to look after you.

Not to mention any pension she may have earned in her working years?

The crack about spousal maintenance is just silly. If you have been out of work a decade or more, not easy to get a job as employers won't choose you.

Glen_Clark

Jegersmart wrote: »

I'll never understand spousal support, people should be responsible for themselves ........

J

So whats the point of getting married?

Hooloovoo

gadgetmind wrote: »

We have free tea and coffee at work and free cakes once a week.

I work in academia where we almost have to pay to flush the toilet. Free tea and coffee? Such luxury!

Glen_Clark wrote: »

So whats the point of getting married?

There is none.

Anyway, back on topic - £1100 per month. That's presumably the desired amount after any relevant taxes, so equivalent to approximately £18k gross salary. A lot of people don't even get that when they are working and have a mortgage to pay, never mind retired.

With only £100k left in the pot for producing income you need a 13% return after any tax to get the desired income.

This is just not realistic. Either she needs to find another source of income, or she needs to accept that the lifestyle she has become accustomed to is one she can no longer afford to maintain.

gadgetmind

Glen_Clark wrote: »

So whats the point of getting married?

For me it was the tax advantages.

grey_gym_sock

gadgetmind wrote: »

For me it was the tax advantages.

i thought we'd drifted completely off the topic of money saving there ... good recovery!