After some investment advice

Baldytyke88

Lord_beerman said:

I'll get her an easy access saver setup to start with that way she doesn't have to worry about "not being able to touch her own money".
She is still working. I'm not sure of her salary as I don't want to be too nosey, but she is a lower tax bracket I'd estimate 25k not including state pension.

Better than not paying tax, put the money back in a pension(SIPP) and get the 20% tax relief back on the money.

People can pay into a pension up to the age of 75, you need to be nosey and advise her.

LHW99

Baldytyke88 said:

Lord_beerman said:

I'll get her an easy access saver setup to start with that way she doesn't have to worry about "not being able to touch her own money".
She is still working. I'm not sure of her salary as I don't want to be too nosey, but she is a lower tax bracket I'd estimate 25k not including state pension.

Better than not paying tax, put the money back in a pension(SIPP) and get the 20% tax relief back on the money.

People can pay into a pension up to the age of 75, you need to be nosey and advise her.

Hopefully if she still has some work income there is an autoenrollment pension she could join? The money that goes into it will have tax relief added, and some employer contribution hopefully.

Albermarle

LHW99 said:

Baldytyke88 said:

Lord_beerman said:

I'll get her an easy access saver setup to start with that way she doesn't have to worry about "not being able to touch her own money".
She is still working. I'm not sure of her salary as I don't want to be too nosey, but she is a lower tax bracket I'd estimate 25k not including state pension.

Better than not paying tax, put the money back in a pension(SIPP) and get the 20% tax relief back on the money.

People can pay into a pension up to the age of 75, you need to be nosey and advise her.

Hopefully if she still has some work income there is an autoenrollment pension she could join? The money that goes into it will have tax relief added, and some employer contribution hopefully.

The lady does not seem to be very keen on pensions, so I guess she will not be keen to contribute to a new one, having just cashed one in.

Uriziel

Once you stop working you can cash out your pension without paying tax as long you only take out the tax free allowance of around £13k. It was silly of her to take it all out in one go presumably while she is still working. She must have seen some news about how they are taxing pensions.

Just put her money in an interest savings account. I would not invest her money considering her age.

Albermarle

Uriziel said:

Once you stop working you can cash out your pension without paying tax as long you only take out the tax free allowance of around £13k. It was silly of her to take it all out in one go presumably while she is still working. She must have seen some news about how they are taxing pensions.

Just put her money in an interest savings account. I would not invest her money considering her age.

There is a lot of 65+ people on this forum who are still very much invested !

Uriziel

Albermarle said:

Uriziel said:

Once you stop working you can cash out your pension without paying tax as long you only take out the tax free allowance of around £13k. It was silly of her to take it all out in one go presumably while she is still working. She must have seen some news about how they are taxing pensions.

Just put her money in an interest savings account. I would not invest her money considering her age.

There is a lot of 65+ people on this forum who are still very much invested !

I don't think it is that straightforward. It does not sound like she has too much money and she clearly needs someone to do it for her so maybe she'll blame OP if she loses any money but it is up to them regardless.

If you want a suggestion on where to invest I would put it in an ISA and put the money on the FTSE100. It is still growing consistently despite the doomsayers simply because a lot of people are trying to get away from the US market and are choosing the UK. On top of that in April a lot of newbies will open a S&S ISA for the first time in their life and just put £20k in one go in and they will naturally pick the UK market. I reckon we'll see quite a nice bump in the first few days of April.

Albermarle

Uriziel said:

Albermarle said:

Uriziel said:

Once you stop working you can cash out your pension without paying tax as long you only take out the tax free allowance of around £13k. It was silly of her to take it all out in one go presumably while she is still working. She must have seen some news about how they are taxing pensions.

Just put her money in an interest savings account. I would not invest her money considering her age.

There is a lot of 65+ people on this forum who are still very much invested !

I don't think it is that straightforward. It does not sound like she has too much money and she clearly needs someone to do it for her so maybe she'll blame OP if she loses any money but it is up to them regardless.

If you want a suggestion on where to invest I would put it in an ISA and put the money on the FTSE100. It is still growing consistently despite the doomsayers simply because a lot of people are trying to get away from the US market and are choosing the UK. On top of that in April a lot of newbies will open a S&S ISA for the first time in their life and just put £20k in one go in and they will naturally pick the UK market. I reckon we'll see quite a nice bump in the first few days of April.

This has been discussed before. I can not remember the figures but the amount of money going into S&S ISA's/FTSE 100 is very small, compared to the amount of money washing around the markets every day.

MEM62

Lord_beerman said:

MEM62 said:

Lord_beerman said:

No judgement but my dear old mum has taken all of her workplace pension and stuck it in her current account. 

What sum are we talking about here?

Lord_beerman said:

She didn't want the government to tax her again on her hard earned money. 

What made her think that?  If it is sitting in a pension it is not going to be taxed.  In fact, it would have been taxed in the first place let alone taxed 'again'.  

It would be useful to know what you mother is trying to achieve.  (Also, wherever / whoever she got her advice from - it would be prudent for you to persuade her to ignore this source in future)  

I'm pretty sure she didn't get advice, hence why I'm here. I'll double check though.

She must have been getting advice or information from somewhere or she would not have removed the money from her pension based on a misunderstanding (The belief that it would be taxed.)   

I did manage to get her to come around to the idea of moving at least some of it and managed to survive so that's a positive.

As to what she's trying to achieve, I think just being able to make it last as long as possible on top of state pension. She is still working, though now on reduced hours and reduced salary. Lower tax bracket.

Moving it will not work to that end so she must have some other train of thought in her head that does not align with that and prompted her actions. Maybe you can have a chat to her to understand her actions and the rationale behind them.  

Good that you are supporting mum.  Sounds like she really does need some guidance.