Dad refuses finance advise

uberjason

Alright guys, my Dad has £98k. Refuses financial advise and does nothing with his money. It's in a 0% account and has been since January!!!! He is 53 and really should sort it out but is stubborn like crazy.

I need to come up with a way to get him to shift the money, easily and start earning soon buck on this. I got him to use last years ISA allowance, had to open it for him though and the transfer went through at 11pm so hopefully it worked as he hasn't checked.

So my question is, is there something out there I can go to him with as something I found that will earn him interest that could plausibly be from me? (I have no knowledge of investments or shares but could have internet searched something).

Thanks, sorry if this makes you really frustrated like myself.

gadgetmind

I think you mean "advice" the noun, rather than "advise" the verb, but ...

You're on to a bit of a loser. What is best done with this sum depends on many factors such as other income, pensions, savings, debts, mortgages, etc. but he seems like a difficult case.

If he won't even switch from one risk free account to another that pays more interest, what hope do you have of him even contemplating an investment that carries any degree of risk?

bsms1147

Carrot or stick.

Tell him him can make a 'risk'-free £3,000 a year by following your advice. Heck, say you'll manage it all for him and take a cut. He has to do nothing and makes money in the process.

Or tell him that in ten years his money will be worth a quarter less than it is now.

masonic

If you're looking for someone to advise you of some investment you don't understand in order for you to then try to persuade your Dad to invest in it, then that sounds awfully like the blind leading the blind and you are setting yourself up for a lot of grief if it were to go wrong.

uberjason

masonic wrote: »

If you're looking for someone to advise you of some investment you don't understand in order for you to then try to persuade your Dad to invest in it, then that sounds awfully like the blind leading the blind and you are setting yourself up for a lot of grief if it were to go wrong.

Ok, I should clarify I would like to understand and would work out what to do with it if the suggestion was investments or something. But I have only had to deal with 10k max so I didn't know what happened when you get to that larger sums.

Thrugelmir

Sometimes when faced with a life changing sum people like to take their time and think things through. Start with the basics. Get the money into deposit account(s). There's no rush.

Does your father still owe money on a mortgage?

thegrind

He's probably worked very hard for that money he has and it would be a shame if he lost it all because he entrusted it to a knave in a suit.

masonic

uberjason wrote: »

Ok, I should clarify I would like to understand and would work out what to do with it if the suggestion was investments or something. But I have only had to deal with 10k max so I didn't know what happened when you get to that larger sums.

DIY investment is only worth considering if you have a genuine interest, and even then you'd want a few years experience with a small portfolio before taking on a large sum like that (and even with a lot of experience, doing it for someone else could still backfire). I'd suggest if it's possible he'd need the money within the next 5-10 years then most investment options would be off the table anyway. Medium-term fixed rate savings would probably be a more appropriate option if you can't convince him to get professional advice.

Hominu

bsms1147 wrote: »

Tell him him can make a 'risk'-free £3,000 a year by following your advice. Heck, say you'll manage it all for him and take a cut. He has to do nothing and makes money in the process.

And if anything happens to it however small (even something like the bank doing a fraud check), expect to be held fully responsible. Sorry, but I wouldn't dream of handling anyone's money for them, regardless of risk. Nor do I give out financial advice. If someone asks, I'll let them know what I've found, but I'll never offer advice as such.

I know my own dad has in excess of 50K in a current account getting 0% interest. I've told him he could get money from the bank by putting it elsewhere but he just says "I know where it is when I want it, an equivalent savings account is 0.75% and I have to go in and ask them to transfer cash if I want any of it. It's not worth the bother.". Never said anything again. It's his money, he can do what he likes with it.

xylophone

Would he be happy with NS&I?

Not a top interest rate but assuming that he has not used the 2014-15 allowance yet he could put £5940 into the ISA now and top it up to £15000 in July. http://www.hmrc.gov.uk/isa/new-isa-faq.pdf

In sum then, he could put £5940 into the ISA, say £10000 into the Direct Saver (use to top up ISA), and the balance into the Income Bonds?

Remember DS and IB pay gross, so he might need to advise HMRC of the income.

http://www.nsandi.com/

innovate

What is the advantage of using up your 2014-15 ISA allowance ASAP in a miserable Cash ISA, xylophone?