Reviewing elderly mum's investments

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Hi. I'm helping my recently widowed mum review her investments. She is 86, lives in her own home owned outright and has a DB pension plus full state pension which together amount to three times her monthly outgoings so, she is very comfortably off and has an excess income of over £1000 per month. Her home is in good repair. The most likely use for her savings and investments is for future care either help at home or residential, though she is currently in good health. The house could also be sold to fund residential care if required and would cover around 10 years of care at current value/cost.
She has:
S&S ISA Janus Henderson Multi-Manager Diversified Fund A Acc
- valued at around £95k
- she has contributed £5k this tax year
- charges are: initial charge 5%, annual charge 0.75%, ongoing charge 1.18%
Shares in a single UK company valued at around £75k (they were advised by IFA's to diversify but Dad didn't want to)
Cash savings of around £40k
My initial thoughts are to
- transfer the ISA to one with lower charges, possibly Vanguard or AJ Bell, standard portfolio with a low to moderate risk profile
- look into selling the shares and putting the money into a GIA with the same provider and same portfolio (I know we need to consider CGT which is something I've never had to deal with before)
- use her annual ISA allowance each year by paying in from spare cash and/or transferring from the GIA
We're looking for simplicity, value for money, appropriate level of risk. Are we on the right track? What do you think?
Thanks
She has:
S&S ISA Janus Henderson Multi-Manager Diversified Fund A Acc
- valued at around £95k
- she has contributed £5k this tax year
- charges are: initial charge 5%, annual charge 0.75%, ongoing charge 1.18%
Shares in a single UK company valued at around £75k (they were advised by IFA's to diversify but Dad didn't want to)
Cash savings of around £40k
My initial thoughts are to
- transfer the ISA to one with lower charges, possibly Vanguard or AJ Bell, standard portfolio with a low to moderate risk profile
- look into selling the shares and putting the money into a GIA with the same provider and same portfolio (I know we need to consider CGT which is something I've never had to deal with before)
- use her annual ISA allowance each year by paying in from spare cash and/or transferring from the GIA
We're looking for simplicity, value for money, appropriate level of risk. Are we on the right track? What do you think?
Thanks
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Is you mother in a good mental state and able to understand investing and its risks? If so I think you should be careful to ensure that it is all her decision. If the market falls and your mother's investments suffer relationships could suffer if it could be seen as your fault. If your mother does have mental difficulties caution is even more important and I think cash should be seriously considered.
Has your mother set up Power of Attorney?. If not it should be arranged as otherwise it could be very difficult to access her money should she be unable to do it herself. It would be a good idea to confirm that the chosen ISA provider has well established procedures for dealing with an Attorney.
Mum is in a good mental state, but is intimidated by this sort of thing as Dad always dealt with it and made all the decisions.
Of course the future is unpredictable and although she seems in good health, one bad fall and it can go rapidly downhill from there. Hopefully not of course.
So I would follow some if the helpful comments above, such as transferring out of the old ISA and not having so much money in one companies shares, but at the same time build up more cash reserves rather than keep investing more.
Savings interest rates are at a better level than they have been for some time.
In similar circumstances, a relative of mine had inherited money following the passing of a spouse. A pension fund, specifically, was under the "management" of a wealth management company.
They have effectively done exactly what you are suggesting above and continue to do so:
I'm aware of Vanguard and AJ Bell. Vanguard ISA transfer functionality isn't working for me at the moment (they're going to call me back tomorrow) so it's given me pause for thought about whether to go with them if something that should be so straight forward isn't working. I've used AJ Bell before but didn't think their website was great from a user experience perspective, though I guess it might have improved.