Financial Adviser vs DIY

MaxiRobriguez

pip895 said:

I think before we get too hung up on investment not being a good idea we should consider how little we know of the circumstances.  It could be that the OP has good reason to think that his Mum will not need this cash in the short to medium term and that the circumstances of both the OP and his sister could mean that they would be likely to invest rather than spend any inheritance.   Perhaps we should give the FA the benefit of the doubt in not having mis advised the OP - he has undoubtedly had the benefit of a great deal more information regarding this ladies circumstances. 

I'd go the other way. To me it sounds like the £85k has been settled on arbitrarily and that actually the Mum might end up needing more than that if she has to pay for private care for the next three years say. That could easily gobble up all of the £85k if not more.

Without wishing to sound crass, or uncaring, if the OPs mother lives for another 10+ years then she'll probably want to use all the money for her own needs. If she only lives a couple years then the OP will be in receipt of the money via inheritance anyway at which point this could be invested  and the only thing that has been lost is two years of opportunity cost.

I think if it was me in that scenario I'd be telling my Mum she needs to keep hold of her money, just in case.

nodough_2

nodough_2 said:

Alexland said:

pip895 said:

dunstonh said:

MaxiRobriguez said:

Albermarle said:

Linton said:

Grenage said:

Thrugelmir said

Thank you all so much for your thoughts, incredibly helpful. She isn't in care as such, Attended Living for the independent elderly (Abbeyfield) but she had a stroke 3 days after she moved in. She's made a good recovery although it's left it's mark and she is just about independent still, with my sister visiting most days
Yes we do hold an LPA, and our main concern is that should she need more intensive care she will have sufficient funds to ensure her maximum comfort and you've confirmed my concerns that investing is not guaranteed to do that with it's inherent fees as an additional factor, especially in the time frame that her age and health could well determine. My sister and I are unlikely to invest any inheritance. All things considered, especially with inflation currently being low, I think the best option is to put as much of it as possible in fixed rate savings accounts and the bit of value it will lose in real terms will be a price worth paying for peace of mind. Thanks so much again

Sailtheworld

I'm willing to own my own mistakes with my own money and go DIY.

Different with a family member where I'd be more cautious about taking responsibility. In this case I'd hold my nose and get my mum to take some proper advice from an IFA.

Average life expectancy for an 89 year old female is 100 so there's something to be said for investments but I'm surprised that only £85k is being kept as cash. That could soon disappear in care costs.

Scrub that - average life expectancy is 94 with a 1 in 10 chance of reaching 99. Unless my mother was investing for the next generation rather than just her own needs I'd suggest saving the IFA fees and sitting on the cash