Dad refuses finance advise

Glen_Clark

bsms1147 wrote: »

Carrot or stick.

Tell him him can make a 'risk'-free £3,000 a year by following your advice.

What advice is that where they can make a 'risk-free' 3.06% Net on £98k?

margaretclare

You say *you* need to...

It's your Dad's money! Leave him alone!

Or - dare one whisper it - you have the word 'inheritance' in mind?

bsms1147

Glen_Clark wrote: »

What advice is that where they can make a 'risk-free' 3.06% Net on £98k?

For a basic-rate taxpayer using single-person current accounts, regular savers and ISAs he could get that on over £56,000. Add in some joint accounts and there's the potential to get it to the magical £98,000. It's 'risk'-free in the sense that you're only competing with inflation.

Mirno

You should also point out that as the amount is over £85k some of it is at risk if the bank fails.
Moving it to two deposit accounts with different unrelated banks would be the first step. Worrying about more complicated investments can be left for when your father is more agreeable to the idea.

pearl123

Mirno wrote: »

You should also point out that as the amount is over £85k some of it is at risk if the bank fails.
Moving it to two deposit accounts with different unrelated banks would be the first step. Worrying about more complicated investments can be left for when your father is more agreeable to the idea.

Glad that someone put this up!


Look on this site for savings accounts with good rates or alternatively the This is money site.


Put in your figures in the calculate savings and tell him how much easy money he could earn a year!
http://www.moneymatterstome.co.uk/interactive-tools/generalinterestcalculator.htm

dano17439

I have roughly the same scenario albeit on a smaller scale. My parents have around 25k in a 0.5% savings account and an outstanding personal loan of about 4k paying 9.9%.

I have told them to pay off the loan ASAP, open a cash ISA put 5k in now and 10k in July. The struggle I had to get them to agree it was the best thing to do even though I explained how they were losing money in their current situation.

I wanted to give them advice but without belittling them which was hard (dad 80, mum 69) but I guess the older generation don't keep up to speed with what products are out there

trailingspouse

It's his money, and if he is otherwise of sound mind then there's not a lot you can do about it. With that much in a current account, I'm surprised the bank haven't made contact with him themselves.

You say the money has been in a 0% account since January. He may be just wanting to think about it for a bit. Where was it before then? Is it his life savings, or a recent inheritance for example? He may not be wanting to tie it up as he may be thinking of using it for something in the near future (eg house purchase, that Lambo he's always fancied, early retirement).

He may not think it's any of your business (how would you feel if he turned round and told you that you were making the wrong decisions with your own money?). And I would be inclined to agree with him.

innovate

dano17439 wrote: »

I have told them to pay off the loan ASAP, open a cash ISA put 5k in now and 10k in July. The struggle I had to get them to agree it was the best thing to do even though I explained how they were losing money in their current situation.

Sounds like they are now losing a bit less, so that is positive. But the suggestion to put any money into a cash ISA before late March 2015 is way from the best suggestion anyone could make.

gadgetmind

dano17439 wrote: »

I guess the older generation don't keep up to speed with what products are out there

My father is in his late 70s and is still a very informed active investor who rarely misses a trick regards money saying, tax saving, and generally managing savings and investments during retirement..

Doshwaster

My parents are like that. Their "life savings" are in a 0.1% ISA at their bank, they've never changed energy supplier and my dad has had the same car insurer since Jehovah was a lad.

I've offered to find them better deals but they just aren't interested. It's either "too complicated", "too much bother" or they just don't trust anything to do with computers.