300k and don’t know what to do for the best

woodyalfie

I have POA for my 89 year dad. We have sold his house so he now has £300k to invest and grow . Where is the best place for this?  . He does not need access to the cash. He also has £175k to add to the £300 next year . Suggestions welcome 

wmb194

woodyalfie said:

I have POA for my 89 year dad. We have sold his house so he now has £300k to invest and grow . Where is the best place for this?  . He does not need access to the cash. He also has £175k to add to the £300 next year . Suggestions welcome 

A savings account. As you're lending it to the Treasury, NS&I offers full deposit protection on the entire amount.

https://moneyfactscompare.co.uk/savings-accounts/

Enzo_L

woodyalfie said:

I have POA for my 89 year dad. We have sold his house so he now has £300k to invest and grow . Where is the best place for this?  . He does not need access to the cash. He also has £175k to add to the £300 next year . Suggestions welcome 

As an attorney your duty is to act in the best interests of the donor of the power, your dad.

According to the ONS Life Expectancy Calculator an 89 year old male has an average  life expectancy of 93, so he doesn't really have the timescale left to "invest and grow" the money - and it is his position, and not any priorities that you may have, that is paramount.

You really need to be looking at savings accounts not investments.

Hal17

woodyalfie said:

I have POA for my 89 year dad. We have sold his house so he now has £300k to invest and grow . Where is the best place for this?  . He does not need access to the cash. He also has £175k to add to the £300 next year . Suggestions welcome 

I had the same issue when my Dad was 92, split the money into savings, fixed cash ISA's and premium bonds. He's now 95 and the money pot is still looking good.

Sam_666

I would suggest putting £100K in easy acess high % paying savings account.
He would need this for initial care home costs for 1st 4y.
Rest, invest in S&P index.

This question is more about long term care plans and inheretance growth.

eskbanker

Sam_666 said:

I would suggest putting £100K in easy acess high % paying savings account.
He would need this for initial care home costs for 1st 4y.
Rest, invest in S&P index.

This question is more about long term care plans and inheretance growth.

Difficult to know where to start with all that!

What sort of care home do you think you'd get for £25K a year?

Even if investing, why S&P?

When you say the question is about inheritance growth, are you suggesting that's what should be considered or accusing OP of (wrongly) having that in mind?

And of course, 89 isn't normally a time for making long term plans....

Hal17

eskbanker said:

Sam_666 said:

I would suggest putting £100K in easy acess high % paying savings account.
He would need this for initial care home costs for 1st 4y.
Rest, invest in S&P index.

This question is more about long term care plans and inheretance growth.

Difficult to know where to start with all that!

What sort of care home do you think you'd get for £25K a year?

Even if investing, why S&P?

When you say the question is about inheritance growth, are you suggesting that's what should be considered or accusing OP of (wrongly) having that in mind?

And of course, 89 isn't normally a time for making long term plans....

We are paying £84,000 a year and that's just for standard care. You certainly cannot take any risks with your available funds.

MEM62

Sam_666 said:

Rest, invest in S&P index.

Life expectancy for the OP's father is not long enough to make investing the appropriate choice. 

Sam_666 said:

This question is more about long term care plans and inheretance growth.

No it is not.  The OP has to act solely in the interest of their father - not his potential beneficiaries.  
 

dunstonh

Rest, invest in S&P index.

What a completely bizarre recommendation.    Totally unsuitable.  It's the sort of recommendation that only an inexperienced investor could make.    It's a bad recommendation irrespective of age.  Its an awful recommendation for someone in their late 80s operating under a POA.

Eyeful

Sam_666 said:

I would suggest putting £100K in easy acess high % paying savings account.
He would need this for initial care home costs for 1st 4y.
Rest, invest in S&P index.

This question is more about long term care plans and inheretance growth.

1.  The POA of the OP is to act for the benefit of his father not himself.

2. Life Expectancy of an 89 year old male is 93.
This too short a period of time to consider Investments! 

3.  Suggest Cash ISA's and savings accounts & maybe Premium Bonds.
https://moneyfactscompare.co.uk/savings-accounts/

Heedtheadvice

Thank goodness several posters have refuted Sam_666's suggestions

Not only is it awful as a suggestion but the OP as Attorney ( if doing anything along the suggested lines) could well be acting illegally.

Even spending some of the money for the benefit of the father would be a better idea including some luxuries as  care. Doing what the father would like or do himself is part of the responsibility provided that is one of the intentions that he would have chosen prior to the POA  becoming active ( I assume that the conditions written in the POA now give the Attorney the authority to act....)