Investing money from sale of mum's house to pay for her care?

AnotherJoe

jdw2000 wrote: »

You'll still be sitting next to ppl who aren't paying a penny for it.

Possibly, especially for cheaper care homes. But some of those may be in a location their relatives don't want them to be because they didn't have any choice. For example, friend of mine is right this moment moving his mother into a care home near him, which is 100miles away from where mother currently lives. This will be funded by either selling or letting her house.

If he had no choice, mother would be put into a care home near where she lives now,since his council certainly doesn't want the expense of a person from out of their area. And he'd have a 100 mile each way round trip to see her rather than the choice of care home near him, the one she's going into now over xmas as a trial is 5 minutes drive away. And he wouldn't get to choose the home in her council area either.

So yes there may be people in his home of choice who aren't paying a penny, though given the price of this one, frankly I doubt it, I think it's about £1200 a week , but even if there are, the choice and abilty to move her close to him makes a huge difference.

jamesd

One option might b to use peer to peer investing. I'd expect to be able to invest the sort of amount that you're considering over about six months and get around 12% before bad debt that might be around 2%, so net of bad debt about 38k a year. At least four different P2P platforms with the money fairly evenly spread between them for safety in the event of conceivable but unlikely trouble with a platform.

It's also worth investigating the purchase of an "immediate needs annuity" to cover part of the care cost. This is to provide some protection to the capital in the case that she lives a long time. It'll cost a fair bit of capital up front, how much depends on the annuity vendor's assessment of her life expectancy and the amount of income to be provided.