Buy a nearly new car rather than new.

Stocks and shares isa and a bond.

Bikes, lots and lots of bikes.

Well you and your siblings renovate, let and provide him with an income and enough to pay the loan on his new car.

I have no desire to be a landlord, my sister hasn’t got 2 quid to rub together so that won’t happen. The rent would never cover a car loan as well as providing him the £5-600 a month he already gets from it. It’s a £150 grand 2 bed semi.

Buy a nearly new car rather than new.

Tha’s already a given.

Why not lease a car then? He could even chop it in after a couple of years if he doesn’t prang it.

Most accountants deal with tax and cannot provide financial advice on investments since it’s a criminal offence to give financial advice if you’re not qualified and do not have the appropriate authority from the FCA, punishable by jail term.

IFAs no longer get commissions for investment advice and have to disclose fees before any advice takes place. These can be negotiated.

ISAs are not the be all and end all for older people as they are not IHT exempt, therefore any value will be included in the estate for tax purposes on death.

There are plenty of investments, lower risk, which will pay out roughly 3-4% pa. A trust could be bolted around them for protection purposes. These are the types of things that a GOOD IFA will be able to provide advice on. Don’t go to a bank or a restricted adviser as that’s where you might pay higher fees for a lesser service. Unbiased.com will give you decent advisers in your area. You could also purchase a guaranteed income option.

BTW I am not a IFA but do deal with them daily

So he’s got a £150k house paid for and lives in one worth much more (also paid for )
But can’t afford a new car ?

And he’s 70?

Tell
Him to get an e bike (apparently you are allowed to buy them if you are old)

But can’t afford a new car ?

What has ‘afford’ got to do with it?

Maybe he’s smart enough not to line a dealers pocket just to fluff up his ego? A new car doesn’t do anything else that a used one does.

Why not lease a car then? He could even chop it in after a couple of years if he doesn’t prang it.

He’d never waste money like that! he’s a pay 10 grand for a car and keep until scrap kind of guy.

What I was really trying to ask, is probably ‘what’s the best way to handle his money’ As currently whilst he has plenty of money, it’s all tied up in the 2nd house. He has a comfortable pension but no lump sum in the bank in case he wants a new car or a fancy holiday or whatever the hell he wants to spend it on, it’s his money after all.

I think to be honest he’s just getting a bit jittery as he had savings when he retired but recently he has spent a fair bit maintaining his main house, and worrying he’s not got his cash crash net.

I don’t want him to get to 85-90 wishing he’d done/bought things but didn’t have the cash to do it when clearly he has got the cash. I don’t want him to save it for the kids, I want him to have what he wants.

What I don’t want however, is him to sell the house and keep it all in a current account not working for him.

I think we have the answer however. Sell, small lump goes in the bank to spend, lump goes into premium bonds or whatever as available funds and the rest into safe investments.

and thanks Julzm. You seem to have grasped what I was asking.

would it make sense to re-mortgage the second house? i don’t know – i’m just asking.
the thing i would be wary of as well, is that if he has a decent chunk of money in the bank and ends up going in to residential care the bulk of that money will disappear VERY quickly, and i hate to say it, but at that age, it doesn’t take much for someone who is fit and healthy to not be fit and healthy.

one way to solve the car thing is just go PCP. fully serviced new car every three years with some cash left over every month?

I remember taking my 95 year old Gran shopping for a new television and the chap was trying to sell her an extended warranty.

“and you think I’ll be able to take advantage of that!” she says, he didn’t know where to look 🙂

As we get older we spend less, seen it with my grandparents and now my folks. I’d second the either take out a loan against the property, and possible equity-release or look at gifting it to you two, and then the pair of you mortgaging it etc.

But, if it’s currently rented out, surely they’re already paying him a monthly rent?

IFAs no longer get commissions for investment advice and have to disclose fees before any advice takes place.

Completely coincidentally, the fees are calculated on exactly the same terms as the commission used to be, and still come out of the investment value.

🙄

Believe me, I was there in the IT department for a major financial services provider when we, to all intents and purposes, did a search for the word ‘commission’ in the code base, and did a replace-all with the word ‘fee’. The rest of the industry did the same.

I second julzm’s advice.

The assumption in your father’s calculation about his future income is that inflation doesn’t affect the value of his savings, which over 30 years is very unlikely to be the case.

There is a CGT relief for the period a house is the Principal Private Residence of the last 18 months, and any other periods, with the gain calculated on a pro-rata basis unless there’s been a formal valuation.

It would probably be worthwhile moving into the house before selling it.

If the property is jointly-owned then there will be two CGT allowances.

Best speak to a tax accountant.

If your father sells, on a 30-year view he should hold a significant proportion of equities to ensure growth and inflation protection.

Most managed funds underperform the markets because of fees. ETFs attempt to follow the indices, and have low costs. The UK market is dominated by a small number of sectors, so perhaps a global ETF. Talk to an IFA if you need help.

Be careful about bonds as inflation is more likely to rise in the next few years than in the past, and it’s a significant risk with bond yields so low. Especially with a 30-year view.

Possibly some gold for protection.

Bank account and short-term instruments are good for ready cash.

A shonky stepladder?

Either you or your sister can “steady” it.

Sometimes…

He could burn it in front of a Tory Cambridge university student?