Are pensions capital?

atush

The aloowance is per year, so you will get a further allowance next april if 15K isn't enough for this year.

There are also regular savers paying up to 6%

xylophone

You cannot inherit ISA status on your mother's accounts.

You can open a stocks and shares ISA for yourself.

As you are not earning, your contributions to a private pension would be limited to £2880 net and your pension provider would claim tax relief of £720.

There is nothing to prevent your investing in stocks and shares outside an ISA.

There are various interest paying current accounts.

You can consider your situation with regard to new state pension as previously indicated.

r_i_c

Thanks, this is giving me something to focus on. So, £2880 net can go straight into my SIPP (which consists of shares btw). Next I can open an ISA in my name and invest the maximum in it for this year, which I think was around the 15K mark. Then there is the Santander account. I already have a NatWest current account but it does not earn interest, I suppose there is the option of opening a parallel NatWest savings account?

The stocks & shares idea sounds interesting but I have next to no knowledge of the stock market. I wonder if there are stocks & shares 'packages' available, if that makes sense?

Mum and dad had joint accounts with the Chelsea building society and the Post Office, so with dad's eye for figures (which i did not inherit) I would guess these might be worthwhile in terms of interest on savings? But their mainstay was Hargreaves Lansdown and to a lesser extent M&G.

Am vague on the state pension other than I have paid all my NICs and the pension doesn't start for me until I am 66. Oh! I did ask them about increasing that pension by voluntary contributions but they said to contact them again in a year (=new tax year?) when they would be able to advise me in more detail.

Thanks again.

xylophone

Hargreaves Lansdown offers a stocks and shares ISA and an unwrapped fund and share account.

Rather than investing in single shares you could consider funds.

You need to consider whether you are investing for growth or income or both and whether you would wish to consider investment trusts, unit trusts, ETFs, etc.

http://www.thisismoney.co.uk/money/diyinvesting/article-1616089/ISA-INVESTING-TIPS-Fund-trust-ideas-income-investors.html

http://monevator.com/the-investing-basics/

If the capital you are about to inherit is substantial and you are unsure about investments you could consult an IFA.

https://www.unbiased.co.uk/

For up to around £50.000, a selection of high interest paying current accounts would pay more interest, even after tax than most savings accounts.

http://www.moneysavingexpert.com/savings/savings-loophole

I do not think that either Natwest or the Chelsea offer anything particularly attractive?

http://mailonlinecreative.co.uk/tim/cash_isas.html

r_i_c

Now that really gives me some food for thought I'd prefer not to discuss amounts until the grant becomes a reality, I have received incorrect paperwork in the past from both the probate registry and the IHT office, it was cleared up in both cases but has left me slightly wary. I will believe the grant when I see it on the door mat.

xylophone wrote: »

Hargreaves Lansdown offers a stocks and shares ISA and an unwrapped fund and share account.

Rather than investing in single shares you could consider funds.

How does that affect the cap please - would it apply to both ISA and the fund? Is the fund and share account all the same thing please, or separate concerns?

You need to consider whether you are investing for growth or income or both and whether you would wish to consider investment trusts, unit trusts, ETFs, etc.

http://www.thisismoney.co.uk/money/diyinvesting/article-1616089/ISA-INVESTING-TIPS-Fund-trust-ideas-income-investors.html

http://monevator.com/the-investing-basics/

Need to look at this - with thanks.

If the capital you are about to inherit is substantial and you are unsure about investments you could consult an IFA.

https://www.unbiased.co.uk/

Excellent

For up to around £50.000, a selection of high interest paying current accounts would pay more interest, even after tax than most savings accounts.

http://www.moneysavingexpert.com/savings/savings-loophole

So numerous bank accounts / current accounts? Will check out the url

I do not think that either Natwest or the Chelsea offer anything particularly attractive?

http://mailonlinecreative.co.uk/tim/cash_isas.html

Oh dear, have been with NatWest for donkeys' years - possibly though I should keep that account for basics, DDs & so forth, but place majority of estate capital elsewhere? My parents used HSBC.

xylophone

The ISA allowance is £15,240 for this tax year.

You can invest as much as you wish into the stocks and shares trading account.

There is nothing to prevent your keeping your Natwest account and opening other current accounts.

The DDs relating to utilities, CT etc might be better in the 123.

http://www.santander-products.co.uk/banking/media/123.html?gclid=CKed5ICOgccCFSQXwwod95ACPg

r_i_c

xylophone wrote: »

The ISA allowance is £15,240 for this tax year.

You can invest as much as you wish into the stocks and shares trading account.

There is nothing to prevent your keeping your Natwest account and opening other current accounts.

The DDs relating to utilities, CT etc might be better in the 123.

http://www.santander-products.co.uk/banking/media/123.html?gclid=CKed5ICOgccCFSQXwwod95ACPg

All to the good but I couldn't face swapping from NatWest just now, too many balls in the air. I'd rather open or upgrade to the 123 then see how things go.

Need advice on stocks & shares, I'd be a fool to jump right in, I was planning on following what mum had invested in - guided by dad - since the interest that generated was good, I mean it kept coming in. But maybe that's my starter? Maybe those would be the companies I could begin to invest in?

Early days - but I haven't got long to get things sorted out: when the grant is certified I need income, I am 6 months short of the TPS.

Many thanks again.

atush

A said, you should look at funds instead of single shares. They are less risky as they consist of holdings in 20- 100s of comoanies so any one company getting in trouble or even going bust will limit your losses.

As to doing it yourself, you could start off with a lifestyle fund, say something int he vanguard series. As these are funds that hold shares globally, and can even hold bonds. Mixing bonds with equities tends to give you less volatility in general. So have a look at the Vanguard thread here in the forums.

But yes, if the money will be substantial you do need to think about getting an IFA. See a couple for an initial appt and get back to us. unbiased.co.uk

r_i_c

Thanks, the grant has now arrived so I am wondering what to do first. :eek: Need to write mum's bank and get that estate balance transferred so I can settle the legacies in the will. Guess I should do that first. Have already phoned the solicitor about transferring household deeds into my name - they are to phone back.

Anything else I should do at this precise moment in time please?

Also guess I should open that 123 account as soon as possible?

Yes, the IFA is going to be a brilliant source of advice - thanks again!

r_i_c

Have just noticed that the bulk of mum's shares - about 3/5ths - were in a Hargreaves Lansdown fund called a "Vantage Fund & Share Account". So would the ISA cap also extend to this vantage fund, or could I open one in my own name please, parallel to a new ISA?

The fund was broken down into the following 'trusts':-

14% Accumulation
13% Growth/Income
38% Equity Bond/Income
35% Strategic Bond/Income

Thanks.