Where to put £250,000 life savings?

Options
2

Comments

  • IceTry
    IceTry Posts: 27 Forumite
    First Anniversary First Post
    edited 18 June 2017 at 9:01PM
    Options
    Thanks everyone, sounds some good stuff to mull over.

    I hear what your saying Altarf : "Would you like to describe a scenario where a big name UK bank fails and the UK government actually allowed it to fail and to default on its retail customers so the £75k protection kicks in".

    However, my mother's money was all in Santander which of course is a Spanish bank, so that may or may not make a difference. I can't remember what happened with the Icelandic bank, but I don't think everyone got their money back when it went under.

    "Stocks of tinned goods, water, and ammunition would be the bigger issue" made me laugh though:D!
  • Carrieanne
    Carrieanne Posts: 122 Forumite
    Options
    antrobus wrote: »
    The OP stated that;

    Her aim is to minimise her risk but create some return as well.

    There is no return on gold. Gold involves risk; the price fluctuates.

    I would suggest a 0% allocation to gold myself. :)

    That's your opinion and you're entitled to it. Mine is the original poster and his/her mother ought to invest more thought about the return of her money rather than a return on it. The government guarantees to return up to a maximum sum. That requires faith in politicians, and of course there's no backstopping with regard to its purchasing power. You won't be surprised to learn that I fully expect expect the debt bubble to pop by year's end.
  • Zanderman
    Zanderman Posts: 4,690 Forumite
    First Anniversary Name Dropper Photogenic First Post
    Options
    Carrieanne wrote: »
    That's your opinion and you're entitled to it. Mine is the original poster and his/her mother ought to invest more thought about the return of her money rather than a return on it. The government guarantees to return up to a maximum sum. That requires faith in politicians, and of course there's no backstopping with regard to its purchasing power. You won't be surprised to learn that I fully expect expect the debt bubble to pop by year's end.

    The government guarantees it all in NS&I. And that has been the case for decades. The OP's mother is 80 - so probably not in it for the longterm (but could be around for another 30 years or so if lucky I guess!) and specifically wants minimal risk.
  • eskbanker
    eskbanker Posts: 31,211 Forumite
    First Anniversary Name Dropper Photogenic First Post
    Options
    IceTry wrote: »
    However, my mother's money was all in Santander which of course is a Spanish bank, so that may or may not make a difference.
    Unless she actually went to Spain, her money will be with Santander UK plc and thereby fully protected under FSCS (up to £85K) as with any other UK bank - the location of their corporate parent doesn't come into it.
    IceTry wrote: »
    I can't remember what happened with the Icelandic bank, but I don't think everyone got their money back when it went under.
    All UK savers did.
  • greenglide
    greenglide Posts: 3,301 Forumite
    First Anniversary Combo Breaker Hung up my suit!
    Options
    All UK savers did.
    We did, indeed!

    If (when?) it should happen again I suspect that the government would not be as generous. We have been warned and I would imagine that the number of people who have over the guaranteed amounts is less than there was.

    If Barclays, Nationwide, Coop, ...... failed spectacularly would taxpayers who didnt have money in it want savers to be bailed out? The bail out of the savers and of the banks wasnt entirely popular last thim!
  • Linton
    Linton Posts: 17,205 Forumite
    Name Dropper First Post First Anniversary Hung up my suit!
    Options
    greenglide wrote: »
    We did, indeed!

    If (when?) it should happen again I suspect that the government would not be as generous. We have been warned and I would imagine that the number of people who have over the guaranteed amounts is less than there was.

    If Barclays, Nationwide, Coop, ...... failed spectacularly would taxpayers who didnt have money in it want savers to be bailed out? The bail out of the savers and of the banks wasnt entirely popular last thim!

    The money is guaranteed, it's not something the government has to decide on the fly. If it wasnt guaranteed any whisper of bank being in difficulty could lead to a run on the bank which would ensure it did fail. And once one bank failed there is a danger of a domino effect endangering other banks.
  • greenglide
    greenglide Posts: 3,301 Forumite
    First Anniversary Combo Breaker Hung up my suit!
    Options
    I was talking about amounts in excess of £85,000 which the government paid out in the Iceland mess.

    I have no reason to believe they would not meet the £85,000 guarantee in a future mess but not go above that.
  • dunstonh
    dunstonh Posts: 116,463 Forumite
    Name Dropper First Anniversary First Post Combo Breaker
    Options
    Carrieanne wrote: »
    That's your opinion and you're entitled to it. Mine is the original poster and his/her mother ought to invest more thought about the return of her money rather than a return on it. The government guarantees to return up to a maximum sum. That requires faith in politicians, and of course there's no backstopping with regard to its purchasing power. You won't be surprised to learn that I fully expect expect the debt bubble to pop by year's end.

    It isnt about opinion. it is about facts. You are recommending a risk based option that requires a volatile pricing to show a profit or a loss.

    That is not at all consistent with what the OP is asking for.

    Also, the FSCS is not funded by the Govt. it is funded by a levy on financial institutions. The Govt can lend money to the FSCS but this is a loan that has to be repaid by the financial institutions.
    I am an Independent Financial Adviser (IFA). The comments I make are just my opinion and are for discussion purposes only. They are not financial advice and you should not treat them as such. If you feel an area discussed may be relevant to you, then please seek advice from an Independent Financial Adviser local to you.
  • IceTry
    IceTry Posts: 27 Forumite
    First Anniversary First Post
    Options
    "You won't be surprised to learn that I fully expect expect the debt bubble to pop by year's end"

    What do you mean by that CarrieAnne?. Could you explain - I am genuinely interested how you come to this conclusion and what it might mean for savings and the market.
  • eskbanker
    eskbanker Posts: 31,211 Forumite
    First Anniversary Name Dropper Photogenic First Post
    Options
    xunil wrote: »
    I always recommend Dolphin Trust as a good investment, they renovate Grade II listed buildings and convert them into apartments to sell off.

    You get 10% returns per annum and you get your original money back after the chosen term (2 or 5 years)

    The only problem is you can't invest directly with them, you need to use an agent.
    That's not the only problem of course - there is also the small matter of how completely inappropriate the recommendation of an unregulated investment would be to the 80-year old looking for safety and security....
    The Dolphin Trust GmbH investment opportunity is an unregulated investment. This means that when clients choose to avail of this opportunity, they are investing in a scheme that is not authorised or approved within the United Kingdom by the Financial Conduct Authority (FCA). Clients do not have the protection of the FCA’s Financial Services Compensation Scheme or access to the Financial Ombudsman.
This discussion has been closed.
★ ★ ★ Meet your Ambassadors

Categories

  • All Categories
  • 343.4K Banking & Borrowing
  • 250.1K Reduce Debt & Boost Income
  • 449.8K Spending & Discounts
  • 235.5K Work, Benefits & Business
  • 608.4K Mortgages, Homes & Bills
  • 173.2K Life & Family
  • 248.1K Travel & Transport
  • 1.5M Hobbies & Leisure
  • 15.9K Discuss & Feedback
  • 15.1K Coronavirus Support Boards