175k investment strategy

investdirect

My 87 year old father in law has moved in with myself and wife. He sold his house for £175000 which is to be invested. My wife has moved from full time to part time employment to care for him. Her annual gross salary will now be £7500. It is intended to use the interest/income from the investment to compensate my wife for loss of salary.I would be interested to know from the many experts that post replies on this site how best to invest the £175000 for the best monthly income, some capital growth and in the most tax efficient way. Medium to low risk investments.

dunstonh

Way too many variables to give any simple or accurate answer. The UK has a number of tax wrappers to suit different individuals tax situation. The best tax wrapper for one can be the worst for another.

Typically though the strategies would will either be sector allocation or high yield or a combination of the two.

How much income are you looking for. Remember, the higher the income, the lower the potential for growth.

Depending on tax position, withdrawal of capital with income reinvested may be more tax efficient. Natural yield may be better.

Who is going to be the owner of the investments? What will happen to the money on your FIL death?

What do you mean be medium to low risk investments? It needs to be placed in context as one persons low risk is another persons medium risk or high risk.

investdirect

dunstonh wrote: »

Way too many variables to give any simple or accurate answer. The UK has a number of tax wrappers to suit different individuals tax situation. The best tax wrapper for one can be the worst for another.

Typically though the strategies would will either be sector allocation or high yield or a combination of the two.

How much income are you looking for. Remember, the higher the income, the lower the potential for growth.

Depending on tax position, withdrawal of capital with income reinvested may be more tax efficient. Natural yield may be better.

Who is going to be the owner of the investments? What will happen to the money on your FIL death?

What do you mean be medium to low risk investments? It needs to be placed in context as one persons low risk is another persons medium risk or high risk.

Many thanks for taking the time to reply. My wife is looking for 5% plus income. Income is the more important but a bit of growth would be useful. Father in law and wife are standard rate tax payers. The only other income FIL has is £150 private pension and £500 state pension per month. The owner of the investment will be FIL. His will leaves his money to his 3 children and 4 grand children. It is worth pointing out that my wife and her sister has power of attorney over his affairs as he is no longer capable of making his own decisions. Regarding risk factors my wife would see low risk say 50k in high interest monthly income account and medium risk in something like an investment trust. The idea of not touching the capital is based on the time he is living with us. In the event of his condition worsening and the need arises for him to go into a residential care home then the capital would be used for this. I am sorry for my ignorance but could you explain in a little more detail what you mean by "sector allocation or high yield", "withdrawal of capital with income invested" and "natural yield may be better"