Some advice for my mum's inheritence.

Shay_2

Hi - Some basic investment advice would be much appreciated.

Background

My mother (aged 58) is about to inherit approx £180k. She has a small mortgage with her second husband (about £22k) but they have an endowment currently worth £15k taken out to mature in 2011. She has no detb to speak of. She (and hubby) is a lower rate tax payer.

Questions

What would posters recommend as to the best way to invest her inheritence to safe guard her future? I would probably...

1 - Pay off mortgage
2 - Use my ISA allowance
3 - Keep say £15k (ish) in an instant access savings account (for holidays etc)
4 - Invest the remainder in long term savings/bonds

Are my points 1-4 sensible? Does anyone have any more suggestions? Are bonds a good idea? If so which products?

She may take independant financial advice. She is also making a will with her second hubby so there are no grey areas when either passes away.

Thanks in advance - Steve

chesky369

1 Pay off mortgage - yes, but put the equivalent sum should would have paid monthly to pay the mortgage into a savings account.
2 Max ISA allowance - but do £7k stocks and shares ISAs not £3k cash (with hubby that's £14k per annum)
3 Yes, keep an easily accessible amount handy but make sure it's in a high interest account like ICEsave or Sainsburys.
4 Not so sure about bonds - I suspect she needs an IFA to advise her about long-term equity-based investments.

Aegis

With that much money, just talk to a professional. Anything you read here could come from anyone, and you have no guarantee whatsoever that the advice is going to be suitable to your mother's financial situation. A professional IFA will be able to tailor a solution to her needs and you mother will be much better protected against any bad advice (not to say that you'll get any here, but just in case!)