OAP with more than £200K

elvis_bloggs

Fenlander....would you like a really nice friend. ??

sneekymum

Fenlander... I just can't believe you'd rather talk to the bank than an IFA - though if you're considering Premium Bonds...

My mother had the full £30K until I pointed out how stupid she'd feel if she invested it in something sensible and spent the difference in interest on Lottery Tickets...

sneekymum

Dunstonh - I looked at the NU Property Bond (with nationwide holdings) but its charges through Cavendish were 5% compared to 2% for New Star (all in London therefore a target of terrorism).

dunstonh

sneekymum wrote:

Dunstonh - I looked at the NU Property Bond (with nationwide holdings) but its charges through Cavendish were 5% compared to 2% for New Star (all in London therefore a target of terrorism).

That seems a bit high for Cavendish. Perhaps its because NU do not pay trail (fund based) commission on their fund but it is paid on the New Star fund. However, the initial commision can be waived if the IFA/Cavendish wanted to.

The Skandia, Cofunds, Selestia and Transact platforms seem ok with reducing the initial charge due to nil initial commission. Fidelity didnt make much difference though. I dont know if Cavendish have their own platform or use the generic offering of one of the supermarkets.

(this paragraph added after above typed) A quick check on Selestia had the Morley Property, Norwich Property and New Star Property all at 5% initial charge with full commission with a 1 for 1 reduction on commission. Their initial commission would be between 3 and 4% depending on the IFA. So, with zero initial commision, all of those should be available with 1% initial charge to you and 0.35% fund based paid to the IFA. They didnt have Britannic listed yet.

(second paragraph added) Cofunds have Britannic at 5.25% intial charge and they pay 3% initial commission and 0.5% fund based. So, with no initial commisison it would be 2.25% initial charge. They have NU at 5.00% initial with no trail and 1:1 commision reduction would be 2% initial charge. New Star was also 5% but has 0.5% trail.

Britannic have recently launched a property fund (since we last typed/chatted on this). No history and limited information at this stage but it may be worth a punt. I have also used the Morley property fund many times in the past. I am currently researching Close property funds for someone who wants to invest £100k into property funds but a variety. Their funds are available on the Transact platform (as are morley, NU, new star and britannic).

EdInvestor

People interested in commercial property funds and who already have a brokerage account or Sipp might like to look at the new offshore property trusts run by the big insurers like Scottish Widows, Std Life, FP/F&C. They are very similar to their pension/life property funds

You buy these in the form of a share: the comparison is a bit like a tracker fund and an ETF.

Brokers and Sipps will rebate commission in the normal way, and charge the usual flat rate buying and selling fees.

fenlander

Thanks to all who have continued to suggest and support . Yes Editor you have hit the nail on the head, SAFE is right word !! I am too old and this amount is a lifetimes work and must last me for the next 20 yrs ??? , so it must be safe. So what name for name `straight high interest deposits `? what `equity income fund` ? what `commercial trusts` ? what `gilts/NS index linked product ` ? Give me some names to throw at this bank manager on Monday please and thank you

EdInvestor

Hi fenlander,

If it must be "safe" ( ie no risk to your capital) then you're talking cash or index linked gilts, others will be better able to advise you on these products than me.

cheerfulcat

fenlander wrote:

Yes Editor you have hit the nail on the head, SAFE is right word !! I am too old and this amount is a lifetimes work and must last me for the next 20 yrs ??? , so it must be safe. So what name for name `straight high interest deposits `? what `equity income fund` ? what `commercial trusts` ? what `gilts/NS index linked product ` ? Give me some names to throw at this bank manager on Monday please and thank you

Hello, fenlander,

The bank manager/financial adviser will want to sell you the bank's own products. In any case, that's all they will be qualified to advise you on.

Please believe me, fenlander, I have been in this position. The bank manager is not looking out for you but for the bank. I have yet to see an investment product sold by a bank which was worth having.

There is absolutely no need to rush to get this money invested. Put it into deposit accounts for now, and stop and think what you want the money to do for you, then invest accordingly, either on your own - using the internet and the many excellent books available - or ( if that's too much trouble ) using a *fee-paid*, not commission based, IFA. Bear in mind that even if you do go to an IFA, it is a good idea to do some research first: if the IFA is giving you bad advice you'll find it easier to spot!

Whatever happens, why not come back and post the bank's suggestions?

HTH

Cheerfulcat

EDIT: Fenlander, just had a look at the Natwest website;out of interest, is it a bank manager or a " private banking manager " you are seeing?

dunstonh

- or ( if that's too much trouble ) using a *fee-paid*, not commission based, IFA. Bear in mind that even if you do go to an IFA, it is a good idea to do some research first: if the IFA is giving you bad advice you'll find it easier to spot!

As from 1st June 2005, all IFAs must offer the option to pay by fee if you choose to. Commission is still available but they cannot be called an IFA if they do not allow a fee option. A fee option can be a fixed fee or by the hour.

sneekymum

& that's good news.