Advice

Audaxer

Davethepioneer wrote: »

HSBC fees for investing it in prudential is £5000 he told me that the money I would receive is what I would keep, as in all fees and taxes are paid. He mentioned prudential because I said I wanted low risk.

Did the bank say with their recommendation that they could net you £20k per year income rising with inflation, and be sure that such annual withdrawals will not deplete your capital, which ideally you also want to rise with inflation? I would doubt that you would get these returns with a low risk investment without risk to depletion of capital.

badger09

I've just skim read your previous thread.

1) Get that bulk of that money into NS&I NOW.
Looks like you've been sitting on it for about 6 months. Don't delay further

2) Avoid HSBC - and any other bank - for investment advice. They cannot give you independent advice and can only sell you a limited range of, probably expensive, investments.

See 2 or 3 IFAs. Go with the one who takes the time & trouble to answer your questions. It will be money well spent.

kidmugsy

I realise that seeking advice at HSBC or ending up with an investment at the Pru is not the way to get the best deal possible. But it is one way of avoiding scams and, possibly, avoiding unduly risky investments.

Certainly the HSBC/Pru route worked out well for a family member who retired with a large personal pension. I raised my eyebrows at the time but she insisted she wanted to deal with the large, well known companies that she was used to dealing with. So far it seems to have worked out well for her. She's achieved the comfort and security that she sought.

DennisTenus

Is ANY amount of money 100% protected with NS&I then?

I mean even if you have millions?

MallyGirl

2 m limit for some, 1m for others

Davethepioneer

Ok can you point me in the right direction to do this Ns&I

JimmyTheWig

DennisTenus wrote: »

Is ANY amount of money 100% protected with NS&I then?

I mean even if you have millions?

It's owned by the UK treasury.
So it's as safe as any government backed scheme.

bowlhead99

Davethepioneer wrote: »

Ok can you point me in the right direction to do this Ns&I

https://www.nsandi.com/our-products

Some of the higher paying options like guaranteed income bonds and guaranteed growth bonds are for fixed terms with maximum allowable amounts. However the normal 'income bonds' pay 1% on up to £1million, without a long lock-in, and the direct saver is 0.95% up to £2 million.

enthusiasticsaver

Firstly to get rid of the numbers on your iPhone go to settings, general, keyboards and turn off smart punctuation.

Don't keep £500k+ in HSBC. N and I for now until you have decided what to do with it. For that amount of money and as you don't have any knowledge or experience in investing I would suggest an IFA and definitely not a bank.

There is risk in everything. Keeping £500k in low interest accounts erodes its value over the years due to inflation. Diversity is the key to minimising risk so you are correct there. We personally went for multi asset funds which are diverse both in terms of geography and types of asset so they include equities and bonds. The bonds make the funds we invest in less volatile but on average the return is much better than bank savings accounts. You also need to look at the charging structure.

Davethepioneer

Can i ask what advice would an IFA give me that the bank won!!!8217;t? So with the £500,000 that I have to invest would it be a good idea to put £20,000 in an isa for myself and my wife £10,000 in something else and £450,000 in the Pru. I will be honest I don!!!8217;t want much money, what I do want and what I told the bank was that if in ten years time I want my £500,000 back it will be there and not turned into £350,000 hence low risk.