Help! 200k to Invest!

xylophone

Condolences on your loss - my own father died before he was 60 and very unexpectedly and the shock to us all was severe.

https://www.moneyadviceservice.org.uk/en/articles/choosing-a-financial-adviser#how-to-find-a-financial-adviser

Try above for The IFA Directory and SOLLA.

Instant Access Cash ISA (Issue 5) from the Coventry for the moment?

https://www.coventrybuildingsociety.co.uk/consumer/product/savings/cash_isa/easy-access-isa-5.html

She could add the £20000 2017-18 Allowance on April 6.


She could hold the balance in NS&I Income Bonds until she has had a meeting with an IFA to sort out the future.

https://www.nsandi.com/income-bonds

Sunday_Girl_2

And thank you - yet again for your input...
Am beginning to get a better picture of things now... BTW, thank you for the Coventry ISA information - MUCH better than Barclays! Appreciate your 'Top Tips'...
Have managed to get an initial telephone appointment with an IFA on Tuesday morning, so at least the ball is rolling in a safe way. So grateful to everyone out there - thanks...

indian_summer

Theres a bereavement payment of £2000 due to widows from the dwp.

Also a weekly pension for a year (dependent on your mums age and your dads ni contributions)

She could be entitled to just over £100 per week.

Iv just recently lost my dad so Im feeling your pain, I hope you and your mum find brighter times soon xx

john2054

No one yet on here has talked about asset management, which is what your mum needs to look at asap. My money is with Irwin Mitchell Asset management, you can call them up and explain the situation. My money is from a personal injury payout, and i get about 4% a year back. I know these guys may not be the cheapest advisors around, but they are solid as houses, and i really do rate them. They do charge fees, all trust fund managers do, but then, they will pay her more than a bank. Even though the returns may fluctuate, they are normally at least reliant on the stock market, but then isn't everything these days.

Give them a ring on monday would be my advice 08004561912 tell them i recommended them to you. (John Robinson, i have a trust fund with irwin mitchell asset management Sheffield office).

bigadaj

john2054 wrote: »

No one yet on here has talked about asset management, which is what your mum needs to look at asap. My money is with Irwin Mitchell Asset management, you can call them up and explain the situation. My money is from a personal injury payout, and i get about 4% a year back. I know these guys may not be the cheapest advisors around, but they are solid as houses, and i really do rate them. They do charge fees, all trust fund managers do, but then, they will pay her more than a bank. Even though the returns may fluctuate, they are normally at least reliant on the stock market, but then isn't everything these days.

Give them a ring on monday would be my advice 08004561912 tell them i recommended them to you. (John Robinson, i have a trust fund with irwin mitchell asset management Sheffield office).

Ignore this post and speak to a few ifas.

Bazofts_Revenge

Hi Sunday Girl as others have said don't be cut up about the NI payments as they covered much more than the state pension. Had your dad just been incapacitated for years it would have provided basic income in DLA, Incapacity and possible Carers allowance etc. Neither outcome would have been great. However your Mum is probably entitled to some of your dads NI record. My Mum paid a reduced NI contribution for years known as married womans stamp and was really worried it would affect her Pension. However they took my dads contributions into account and gave Mum her whole pension.

You haven't stated what interest rate your Mum is paying on the mortgage. Some have said it could be as much as 4% but it could be as low as 0.75% depending when it was taken out. This will be a strong factor in what you should do.

Assuming it is an interest only mortgage for peace of mind divide the £90k by the number of months to when it is due and put that (£1071) into the linked savings account each month. Get the rest of the money working for her. A nice mix of income bearing products earning a modest 4% would be close to paying it off. There would be some risk involved but their could be a nice capital gain too (The companies held by the investments could grow). See the IFA. Good luck.

traineepensioner

TCA wrote: »

As your mum has an offset mortgage, does she have any existing savings offsetting the mortgage balance? If minimal or not at all, you could always use some of the £200k to completely offset the mortgage. The interest rate on her mortgage may be as much as 4%, so you could move £90k (if that's the mortgage balance) into an account within the offset arrangement. This has the effect of nullifying any mortgage interest, i.e. no further interest would be added, therefore she'd pay off her mortgage quicker and effectively be earning the mortgage rate of interest (by not having to pay it). She would however still have access to that £90k and could in fact just use that to the pay the monthly mortgage payments. It gives the security that the home is paid for but the funds can be accessed at any time because they're just sitting in a savings account. Obviously depleting the funds means interest starts being added back to the mortgage.

This is excellent advice! .... The £90K would be effectively earning a tax free interest rate equivalent to her current mortgage rate and would rise if/when the mortgage rates rise. Just make sure that she reduces the £90K in the offset account each year to match the current mortgage arrears. (not required if interest only mortgage)

john2054

i still think she should consider professional financial advice. rather than listening to every tom !!!! and harry on the internet!

bowlhead99

john2054 wrote: »

i still think she should consider professional financial advice. rather than listening to every tom !!!! and harry on the internet!

Yes, plenty of people have recommended she sees local IFAs - which is quite sensible for someone who has just come into a pile of money and doesn't have experience in financial planning or investment management. There is no harm in knowing ahead of those meetings what some of the useful choices might be (such as using the features of the offset mortgage etc).

There is a wealth of information on savings and investments here which can be useful for those who are a little lost at sea or generally inexperienced, and has helped many thousands of people over the years. But when the person with the money is not here anyway - only her child making enquiries and looking for suggestions - then recommending she directly engage with a professional (after seeing a few first to decide who she can work with) is sound advice.

The traditional IFA would make perfect sense, whereas the asset management wing of a law firm that helped you with your personal injury / disability trust is not an obvious choice because she doesn't need a solicitor or legal trust structures.