Declare savings?

EdInvestor

Better watch it JamesD. Joe K will be along any minute to chastise you for not investigating Phuddles's risk profile. :rolleyes:

jamesd

EdInvestor, Joe K could have good reason to do so if I had made to Phuddles specific suggestions for Phuddles. Discussing them with you is a bit different, though. Worth noting that I was non-specific with Phuddles and more specific with you.

EdInvestor

Only joking jamesd

Phuddles

Thanks jamesd and EdInvestor, I'm aware that I need to do something more than just shove money into savings accounts! I've done my cash ISA for this year and am looking at a couple of options for Investment/Bonds over a longer term - the financial advisor at my bank was as much use as a chocolate teapot so I'm looking elsewhere. My mortgage runs until I am 66 and as there's a potential shortfall on my endowment of £12k (I complained to the Ombudsman but he found in favour of the financial advisor) - I've changed to part repayment and paid off 10% this year which will help. Unfortunately the company which looked after my company pension was the one that I complained to the Ombudsman about, though in fairness they were very helpful, but I don't want to go back to them for investment advice!!

EdInvestor

Hi Phuddles

Post some info about the endowment, sounds like it needs a review. There is now a huge variation in quality of endowments, some are still worth keeping to maturity, but with others, you would be better off to surrender and reduce the mortgage loan amount immediately.Size of shortfall is not necessarily an indicator.

Provider
Guaranteed sum assured
Declared bonuses
Surrender value
Monthly payment
Maturity date
Maturity forecasts
Interest rate payable on mortgage

margaretclare

Phuddles wrote: »

I turned 60 & took my State and private pensions in May but have kept working full time, so not quite the same circumstances. I asked the DWP whether I needed to declare the tax free lumps sums and was told no, I just had to let them know about the amount of pension I would be receiving so they could work out my tax code - this is still ongoing due to procrastination on the part of one of the pension companies! I do have to declare the interest on savings & investments. My main purpose at the moment is to stash my pension into a high interest account (7% on regular savings up to £500 a month at Yorkshire BS and 6.25% on Sainsburys Internet - any other suggestions welcome) so I don't fritter it!! I've also paid 10% off the capital on my mortgage & am making small overpayments every month. Personally I would not want to hand over any of my capital for someone else to invest in their name on my account, no matter how close a relative!!

Absolutely. Neither would I. If I was this lady I would be finding out as much as possible myself and not leaving it to someone else to do. I would also be thinking of investing for my future needs, not proposing giving some of it away. After all, aged 60 she can easily live another few decades - 10, 20, 30 or even 40 years! She may need every penny she can get.

I am a bit concerned about the OP's statement 'We are considering her giving my wife and I a lump sum....' It's HER money, not yours and your wife's! As I've already said, she's the one who's going to need it.

I am still saving in retirement, and I'm not about to give anything away to anybody while I'm still on the surface of the planet and not below it.

Margaret

margaretclare

jamesd wrote: »

Better IMO to be using both the cash and stocks and shares ISA allowances so the money in the ISAs can provide an ongoing source of tax free growth and then income.

Yes, that's what I do.

Margaret

Dithering_Dad

margaretclare wrote: »

I am a bit concerned about the OP's statement 'We are considering her giving my wife and I a lump sum....' It's HER money, not yours and your wife's! As I've already said, she's the one who's going to need it.

Steady on Margaret! I'm sure the OP has the best of intentions with them offering to help their Mum with her pension planning. They might not be going the right way about it, but then that's exactly why they are here asking for advice.

A lot of women, especially if they are the OP's mother's generation always left the finances to their husbands to deal with and so if they're widowed or divorced struggle when they're plunged in at the deep end. You can understand why she has turned to her Son in Law for support. For his part, he's simply "sounding out" the lump sum idea to see if it was necessary or would work. Nothing wrong with either of them doing this.

Let's not go jumping to the conclusion that the OP is simply trying to rip off his dotty mother-in-law!! :rolleyes:

EdInvestor

Dithering_Dad wrote: »

A lot of women, especially if they are the OP's mother's generation always left the finances to their husbands to deal with and so if they're widowed or divorced struggle when they're plunged in at the deep end. You can understand why she has turned to her Son in Law for support.

While this is understandable and no doubt very common, it can easily lead to " the blind leading the blind".

It would be better if the two of them made a joint appointment at the CAB, so that they could get proper authoritative information.The s-i-l is then much better equipped to help the m-i-l with later supplementary questions having received a CAB "briefing" and being able to bring up questions of his own with the advisor.

Particularly where there is a possibility of eligibility for benefits, it's really not wise to rely on informal sources like websites.

Phuddles

Hi EdInvestor

Provider Norwich Union
Guaranteed sum assured £17245
Declared bonuses £5823 (last year)
Surrender value £18363
Monthly payment £104
Maturity date February 2013
Maturity forecasts £12k shortfall
Interest rate payable on mortgage 6.25% at last rate rise

The surrender value of £18323 was given to my financial adviser last year, but he was told that the 'true value' at that date was £29000. Hence I didn't surrender the policy - between the lump sum I have just paid off & the part repayment arranged about 4 years ago that shortfall should be £2k at the moment. I'm trying to knock the capital down so that the endowment will pay off the balance in 2013 & anything over will be a bonus.