MegaSack DRAW - This year's winner is user - rgwb
We will be in touch
My mum is looking for advice on how to invest some cash. She has a reasonable amount to invest and needs about 1/10 of that each year to pay for her care home costs.
I know **** all about this stufdf, is there an ideal investment vehicle for her?
Does she want it to just pay out over ten years (until the cash has gone), or longer?
dunno, whatever gets her the best deal. She's got other investments.
ISA is normally first port of call each year.
I'd invest it in setting up a new and exciting bike shop in Edinburgh. Gotta be a 10% year on year return on that?
Ask the same question on moneysavingexpert forum.. there are loads of old FAs on there willing to help.. they'll need a lot more specific info than you've given there though.
OK - she has around £100K to invest so way over the ISA limit.
I was just wondering about maximising the earning potential by locking in as much money as possible.
Well, she's looking for an income of 10%, so I'd imagine she'd be lucky to get much capital growth on top of that.
Honestly, if it's money to pay for care (i.e. money that can't be put at risk), I'd be sticking the stuff to cover the first few years care payments it in the highest earning savings account(s) and rest into fixed term fixed interest bonds to draw down in later years.
She might want to consider an immediate needs annuity to pay for her care costs. Pays a one off fixed price and care costs paid for life. One of fee is normally 4x annual care costs.
You need an independent financial adviser really though as they will take you through all of the options.
Have a look at http://www.partnership.co.uk/care/
Call Hayley Tnk of Almary Green.
I lucked out in choosing her - excellent advisor!
She has recently been awarded accolade of UK's No.1 independent Chartered Financial Planner!
[url= http://www.almarygreen.com/Downloads/InThePress/AlmaryGreenFullPageAdHayleyTink15Jan2013.pdf ]UK Chartered Financial Planner[/url]
Use a service such as Hargreaves Lansdowne Vantage, read up about the various income funds they recommend and put it into those which suit a low risk profile - you are only diversifying if their investment philosphy is different so two different funds could have the same investments.
Thanks all, I'd not heard of annuities.
Sounds like she needs an IFA.
10% return without depleting capital would mean a fairly high risk investment in shares eg an Asia fund, which could go tits up at any time....
A low risk UK based fund won't return much more than 2-3% per annum at best, with interest rates as they are.
I'm not looking for the lump sum to cover the outgoings, I know it will get depleted.