Investment advice ideas please

kidmugsy

The answer is so obviously that she should spend a little of her capital each month that I can't see why other options are even being canvassed.

This is just the sort of purpose for which one keeps cash reserves.

bostonerimus

The critical thing here is to safeguard the income of theOP's mother and with 150k and a need for 3.6k/year that's easy. Just stick the 150k into a saving bond ladder. With just 2% interest you can drawdown 3.6k/year for 88 years. There is no need to take any risk at all with this money so while your mum is alive don't even consider equities rental property etc.

A_T

kidmugsy wrote: »

The answer is so obviously that she should spend a little of her capital each month that I can't see why other options are even being canvassed.

This is just the sort of purpose for which one keeps cash reserves.

Yes it's obvious. Sorry but I often suspect when we get these kind of posts it's really about adult children looking to protect their inheritance.

Audaxer

BLB53 wrote: »

It should be fairly easy to generate an income return of 3% by investing the money in a conservative mix of globally diverse equities/bonds.

It should be fairly easy to get at least a 3% average return long term if you know what you are doing. However that would be average return and there will be years where there is a negative return like last year for example. Accordingly in this case I think the best and safest option would be a savings bond ladder.

djparkie

A_T wrote: »

Yes it's obvious. Sorry but I often suspect when we get these kind of posts it's really about adult children looking to protect their inheritance.

This is actually a request from my mother; my Dad was a Bank Manager and my mum, and us as kids, had investment (rather than spending) drilled into us. As a grown adult I've learned to strike a more even balance. In this particular case my mum is comfortable and struggles to spend the money, and yet is not comfortable just burning through it - therefore us seeking advice.

She'd love to spent it on a cruise around the world and take family with her, but her health will not permit that anymore.

bostonerimus

Your mum is at an situation where risk is not needed or appropriate. Use National Savings or a savings bond ladder and spend a bit of capital if the interest isn't enough to generate 3.6k

AnotherJoe

djparkie wrote: »

Many thanks to all for taking time to respond. I hear advice against investing in another rental property; she has her marble's so I don't have Power of Attorney and she seems keen on another small rental - the difference is it's me and my brother who actually do all of the work on her behalf.

I'm not overly old and we've been lucky with property before but it's sounding like I need to understand equities and bonds more - perhaps specialised one's that even pay a monthly or quarterly return.

Find a few horror stories of rentals gone bad (they wont be difficult to find, perhaps also a few episodes of "dont pay we'll take it away" half of which is non paying tenants being evicted) and tell her its too much risk for her and too much work for you and brother to manage a rental so you wont be doing that.

You dont need to restrict yourself to schemes that pay a monthly or quarterly return, just get enough savings accounts or bonds so that the income is roughly spread out over the year with a cash buffer to level out inconsistencies.


And as others have said, if she's got all her marbles then now is the time to take out a POA, not once shes lost them. I was too late with my dad learn from my mistake. After all if your mum wantsyou to manage a BTL for her she shoudlnt have issues with a POA

AnotherJoe

Here we go, print this out and show to mum. A year or so without rent, chances of damage and theft, yet tenant still in place and requiring high court to evict.
https://forums.moneysavingexpert.com/discussion/5943696/evicting-a-tenant