Best Investment Deals for Elderly Mother

dizco

Hi All

25 years ago, my father and mother invested around £60k in bonds spread across two policies. One with Friends Provident and the other, Clerical Medical. Each policy invests the money in stocks and shares, and currently pays a monthly dividend to my mother (my father died 11 years ago).

In the event of my mother's death there would be no return of investment, and as a result she is now considering alternative (less risky) ways to invest the remaining money, to live on, and secure some inheritance for myself and my sister. She is 85 and (thankfully) in reasonably good health.

Does anybody have any tips / advice on where to go for financial advice, details of the best forms of investments etc?

missile

Out of curiosity only, what return is she receiving on these investments?

At 85 is she really interested in maximising her returns?

If it were me, I would avoid risk and spread the money into interest paying current & savings accounts. There are no pockets in a shroud.

Pollycat

I think this would be better asked on the Savings and Investment board.
Also, have you looked at the Banking and Savings section on the main website?

margaretclare

missile wrote: »

Out of curiosity only, what return is she receiving on these investments?

At 85 is she really interested in maximising her returns?

If it were me, I would avoid risk and spread the money into interest paying current & savings accounts. There are no pockets in a shroud.

I think this remark about 'no pockets in a shroud' is incredibly patronising.

This lady is 85, I became interested in investing in - ahem - later life. I'd been taught to save - by my very poor family - in my school days but got diverted during adulthood, as you do.

I gave up on savings accounts when interest rates dipped so low, but since retirement, 15 or so years ago, I've saved more than I did in my entire lifetime. I've done it through investments. It's a fun thing to do.

But for this lady, it all depends on what you/she wants to do, if she's interested in doing something with this money, or if it's just a nuisance to her.

I would agree - Savings/Investments board is the place to be.

dizco

Thank you all for your advice.

badmemory

Are you sure there is no payout on this bond. My mother had one which did pay out. Surely it depends on whether she is receiving a dividend or something else. A dividend was what my mother received which left the (for want of a better word) principle to be paid at the end on her death.

Keep_pedalling

badmemory wrote: »

Are you sure there is no payout on this bond. My mother had one which did pay out. Surely it depends on whether she is receiving a dividend or something else. A dividend was what my mother received which left the (for want of a better word) principle to be paid at the end on her death.

This sound more like a annuity rather than a bond. If that is the case, then she has a guarantied income for life from them, so there is unlikely to a better option for her, even if she could cash out, which she cant.

If it is a bond paying dividends, then I cant see moving into cash being a good option, and as the underlying investments will still be there and should form part of her estate. Cashing in theses bonds may also have financial penalties attached.

The OP needs to provide more info, particularly the exact products she is holding and the level of income she is getting from them.

She really should taking, paid for, independent advice before doing anything rash with this.

missile

margaretclare wrote: »

I think this remark about 'no pockets in a shroud' is incredibly patronising.

Not in the least patronising.

Sound investment strategy, should be based on risk v reward. Some may live to age 90+ but actuarial tables prove this is unlikely for most of us.

Short-term <5 years; The general rule is to save into cash deposits, like bank accounts.
The stock market might go up or down in the short-term and if you invest for less than five years you might make a loss.
Medium-term 5-10 years. Cash deposits might sometimes be the best answer, but it depends on how much risk you’re willing to take with your money to achieve a greater return on your investment.
Longer-term >10 years; It’s often best to invest because inflation can seriously affect the value of cash savings over the medium and long-term.
The stock market tends to do better than cash over the long-term providing an opportunity for greater returns on any money invested over time..

margaretclare

missile wrote: »

margaretclare wrote: »

I think this remark about 'no pockets in a shroud' is incredibly patronising.

Not in the least patronising.

Sound investment strategy, should be based on risk v reward. Some may live to age 90+ but actuarial tables prove this is unlikely for most of us.

So why didn't you say that in the first place? Making a factual statement is one thing. Snide remarks about 'no pockets in shrouds' can be considered offensive.

The last 10+ years have been unique in that most bank or BS accounts would gain you little, although you don't lose your money except in terms of inflation. Investment rather than savings has been, for me at least, the way to go. But in this case, the lady must decide for herself what she wants to do with her money.

margaretclare

Keep_pedalling wrote: »

This sound more like a annuity rather than a bond. If that is the case, then she has a guarantied income for life from them, so there is unlikely to a better option for her, even if she could cash out, which she cant.

If it is a bond paying dividends, then I cant see moving into cash being a good option, and as the underlying investments will still be there and should form part of her estate. Cashing in theses bonds may also have financial penalties attached.

The OP needs to provide more info, particularly the exact products she is holding and the level of income she is getting from them.

She really should taking, paid for, independent advice before doing anything rash with this.

I couldn't agree more with all of this.

DH and I were talking about our annuities this morning, at the breakfast table (don't know how it came up). He has one from a 'golden goodbye', I have one from my NHS pension which was put into the private sector in 1989. Both of us, individually, have received more in total over the years than the amount that was put in.

Nowadays that wouldn't apply to any annuity, but for us, it worked out well. Neither of us can inherit an annuity from the other, but we're not too worried about that.

missile

margaretclare wrote: »

missile wrote: »

margaretclare wrote: »

I think this remark about 'no pockets in a shroud' is incredibly patronising.


So why didn't you say that in the first place? Making a factual statement is one thing. Snide remarks about 'no pockets in shrouds' can be considered offensive.

The last 10+ years have been unique in that most bank or BS accounts would gain you little, although you don't lose your money except in terms of inflation. Investment rather than savings has been, for me at least, the way to go. But in this case, the lady must decide for herself what she wants to do with her money.

It seems you are very easily offended.
It is in no way patronising or a "snide" remark.
It is a well known saying

This saying refers to the fact that no matter how rich someone is on earth, when they are dead, they can't 'take it with them' and so there are no pockets in a shroud. This reflects the Biblical quote that 'the love of money is the root of all evil'.

margaretclare wrote: »

So why didn't you say that in the first place? ......

I did >>>

If it were me, I would avoid risk and spread the money into interest paying current & savings accounts.

You may have successful investments, but most aged 85+ would be ill advised to follow your example.

As others have said OPs mother most likely has an endowment policy or an annuity. Even if it were possible, it is ill advised to trade security for investment.