The best place to put £50,000.00

EdInvestor

dunstonh wrote: »

Investment bonds are not included in the pension credit means test.

The capital may not be, but any withdrawals of "income" are taken into account for pension credit.

http://www.metafaq.com/resources/standard_life/pensions/pb_statebc_05.pdf

Most investment bonds have high charges and levy taxes she does not need to pay.

National Savings and Investments index linked certificates are worth looking at - the interest is paid tax free and the rate is good at the moment as inflation is quite high. She can invest a max of 30k in these, 15k in each of two issues per year

She should also open a maxi ISA (7k now, 7.2k next year from April) and invest that money is some commercial property, possibly bonds and equity funds which pay an income but also give the possibility of long term growth at fairly low risk. Capital gains and income will be tax free from her ISA.

Go through a discount broker such as https://www.h-l.co.uk to get charges rebated.

dunstonh

Most investment bonds have high charges and levy taxes she does not need to pay.

Lets not go down this route again. Many investment bonds have lower charges than unit trusts. Also, you can purchase investment bonds on exactly the same basis as unit trusts if you wish. Therefore you have a choice.

Go through a discount broker such as www.h-l.co.uk to get charges rebated.

Only for their execution only service. Their advice side is very expensive.

TomsMom

sparkles wrote: »

THanks for your replies. She doedsn't work as she is long term sick, and doesn't pay tax.

Sparkles, I can't help with the investment advice but just wanted to mention something about the fact that you say she is 63 and long term sick. Is she on Incapacity Benefit or retirement pension?

I am 59 and long term sick on incapacity benefit. I applied for a pension forecast and have been told that my benefit will cease when I reach 60 and I will have to start drawing my retirement pension. Your mum and I are in the age group that can still retire at 60 (women) so I would have thought that as your mum is 63 she should be receiving retirement pension by now.