Advising a Relative on Their Finances

AnotherJoe

eskbanker wrote: »

I disagree with this....

Investing is generally only recommended for timescales of at least five years and preferably 7-10, taking into account what historical data tells us about economic cycles.

And wind power doesn't offer any dividends as such, but perhaps some specific companies in that industry (within the UK?) do. However, investing solely in individual companies, or even in very narrow sector funds, is poor practice compared with having a properly diversified portfolio that has the best chance of riding out peaks and troughs and minimising the potential for total loss by spreading eggs across many baskets. Many thought that banking shares were solid and relatively safe until 12 years ago, and investors in the likes of Enron, Carillion, etc, also no doubt felt that they were backing horses with good prospects!

I agree with your disagreement !
Investing over 2 years for someone what wants to save and only has £12k seems wholly inadvisable.

AnotherJoe

Christhesparky wrote: »

How about 4000 in a 1 year fix, 4000 in a 2 year fix and the final 4000 in a 3 year fix. When each matures reinvest into a 3 year fixed rate, so you have one account maturing every year and being reinvested

Good idea as long as mum isn't likely to need some of that money within first year Maybe OP can sub her if so? Although there isn't actually that much difference between 2 or 3 year fixed terms so perhaps 50/50 in a 1 and 2 year would work out almost the same?

Or equal amounts between Marcus, and 1 & 2 year initially moving to equal in M, and two, 2 year staggered across years ?

eskbanker

AnotherJoe wrote: »

I agree with your disagreement !
Investing over 2 years for someone what wants to save and only has £12k seems wholly inadvisable.

To be fair, OP's mother "has other money in various accounts" and "would prefer to tie up the £12000" so investing may be appropriate for this chunk, but only for a minimum of five years and in an adequately diversified portfolio, plus of course only if compatible with her attitude to risk....