Aside from coke and hookers, what else should a near 70 year old invest £150k in for best outcome.

My dad is thinking of selling his rental house as it’s starting to need maintenance and he just can’t be doing with the hassle. He’s relatively cash poor but asset rich. The house is worth £150k and is fully paid off, his main house is also pad off and he has a decent pension but had used the £500 odd a month rent to top it up.

He’s worked out that £150k in the bank, spending £500 per month will last about 30 years. Plus he fancies buying a new car but can’t afford it without saving up for a good while.

I can’t help but think that he could sell the house, keep some of the capital back to buy what he wants but then what to do with the rest, rather than just stick it in the bank and look at it.

What does the tame forum financial advisers think, ps. He will obviously seek professional financial advice also at some point.

A classic / not so classic car

Another house

Premium Bonds

Is the £150k after capital gains ?

House deeds passed on to family, reducing Inherit Tax if he lives a further 7 years, house then used or partially used (with him staying there) in exchange for monthly “rent”?

How much is his main, residential, house worth? If it’s worth more and he was prepared to sell that and move into the rental property then he wouldn’t pay CGT.

I realise that he may have emotional attachments to his current home or might wish to pass it on to you or siblings so this may not be an option.

He’s relatively cash poor but asset rich.

[quote]He’s worked out that £150k in the bank, spending £500 per month will last about 30 years.[/quote]

Erm, spend it on living for the next 20+ years?

Travel the world staying in the best hotels eating the finest cusine.

Aside from coke and hookers

You’ve lost me.

As a couple have suggested I would put it in the bank (well BS for me) and spend it as needed to make the next twenty years fun.

At 70; stick it in the bank, spend it as needed.

If he’s expecting to live another 30 years then maybe stick 15k per year for the next 3 years in a stocks and shares ISA and cash out in 10. Put another 15k into cash each year and that’s 100k accounted for.

The remaining 50k he can leech for 16 years. In the interim he can cash out some of the other investments and rinse and repeat as necessary I guess.

I am not a financial adviser, it’s just what I’d do at 70 if I expected to live that long.

He could buy the new Intense Tracer

I seem to remember reading about some “oldies” who’d worked out the costs and decided to basically live pretty much permanently on a cruise ship as it was cheaper than a residential home….

Thanks. So far you’ve reached the same conclusions as him/me, just spend the money living for 30 years (hopefully). I just wondered where to place the money he doesn’t spend straight away for best returns for him and pretty safely as he has no more time to gain some.

He won’t sell his main place, it’s worth a lot more than the rental but he built it himself, as in dug out, laid the brick, finished it off himself, when he was 23 and has never moved. That will be our (me and sister) inheritance as long as it’s not needed by him.

The passing the deeds and me ‘renting’ it back to him isnt gonna work I don’t think as I haven’t the lump sum he requires. Although will look more closely at this option too.

Aside from coke and hookers, what else should a near 70 year old invest £150k in for best outcome.

A shonky stepladder?

Either you or your sister can “steady” it.

Blazin-saddles – Member

Aside from coke and hookers, what else should a near 70 year old invest £150k in for best outcome

Shirley it depends on what he deems to be ‘the best outcome’.
Does he want an income from it? An inheritance for his kids? To have some fun?

At that age, I’d be sorely tempted to buy a second-hand Lamborghini Gallardo lp570-4 Superleggera (in bright yellow), stick a tow bar on it & use it to tow a caravan…..

After buying a car and other toys for nearest and dearest…
Open S&S Isa and Dealing account with Hargreaves Lansdowne or similar. There are several trusts which pay divis of 6-7% with relative safety. Assuming he invests £75k, leaving some in Premium bonds or high interest accounts, just in case, he should be getting an extra £5k a year tax free, without eating into or increasing his capital.

Bear in mind that the presumed 30 years of living costs will turn into 3 if/when he has to go into a home.

I think buy to let is still a good source of income. If he doesn’t want the hassle, he should do a deal with his son. Form a partnership, he gets a regular income and no hassle, the son maintains the property, in which he now has a stake.

Speak to an IFA, I would.

PP 🙂

Best outcome would be some to spend, some to pay a bit of living costs for the long term to top up his pension. Nothing to leave for kids as it’s his money and I want him to get to the end having done what he wants, not be afraid to spend anything just in case.

His main house (after taxes) will be our inheritance if she rs not had to be used, if it has then so be it.

I think buy to let is still a good source of income. If he doesn’t want the hassle, he should do a deal with his son. Form a partnership, he gets a regular income and no hassle, the son maintains the property, in which he now has a stake.

I am the son in question, I can’t afford a btl and haven’t got a lump sum to give him as is the reason for selling the house.

Please can you furnishes me with your fahter’s email address?

I am a Nigerian prince who needs to transfer some of my very rich fortune to The United Kingdum. If he gives me his bank account deetsils I can make him a very riches man.

Yours regally and in anticpationtion of your kindest actions,

HRH Prince Loadsa Wonga

Bear in mind that if he sells the house for £150k he may get much less than that after CGT. Talk to an accountant. They’ll give you the tax implications of your options, and they’ll charge less than you think. An IFA will want a hefty wack, and if on commission won’t suggest keeping the house as there’s nothing in it for him.

Maybe he should try and learn new skills and experiences?

You could suggest an intensive residential whistling course followed by a week’s work experience with Harry the Spider?

He should go off on holiday somewhere hot and cheap – Thailand for example. Live like a king for the remainder of his life.

Bear in mind that if he sells the house for £150k he may get much less than that after CGT. Talk to an accountant. They’ll give you the tax implications of your options, and they’ll charge less than you think. An IFA will want a hefty wack, and if on commission won’t suggest keeping the house as there’s nothing in it for him.

Best advice so far.

Spend a bit on something nice and useful then the rest on something that will (complete nuclear holocaust aside) retain its value or better. Ideally something he sees a pleasure in and something that can be physically kept. When the time comes for it to be sold it can be turned into really cash so that he gets its all back and a bit more.

defo get a couple of scratchers…. and not them quid ones either, splash out on a couple of them fiver ones!

Sounds like an accountant or IFA is the way forward.

He doesn’t want to buy something as an asset, he already has that in the form of a house. He’s not an owning things man, he doesn’t care for (classic) cars and pretty much has everything he wants already. He wants some money to spend on a new car (we’re talking Focus not 911) and holidays then some to stick away, but be available as and when required.

At that age, I’d be sorely tempted to buy a second-hand Lamborghini Gallardo lp570-4 Superleggera (in bright yellow), stick a tow bar on it & use it to tow a caravan…..

I like your style, sir. 🙂

Sounds like an accountant or IFA is the way forward.

An Accountant! Not an IFA. They give estate agents a good name!

A 10 year bond will pay 4% which is £500 a month without depleting the capital.

An Accountant! Not an IFA. They give estate agents a good name!

Second best advice so far 🙂

OP – sounds like he’s pretty well sorted financially so best thing is to release the house back onto the market and let someone else have it who needs a secure home to live in… the housing crisis is very real and very painful for those on the wrong side of it.

He may have to pay tax but surely that’s fair enough given that it’ll be on capital gains only, so he’ll simply be giving a proportion of a load of unearned wealth back to government to spend on health, roads, schools etc when the country badly needs it…

Worth looking at either a stock market investment focussed on income rather than growth or just a simple fixed term bond for lower risk…

Anyone who thinks BTL is worth it simply isn’t paying attention… the law changes in April…

OP – sounds like he’s pretty well sorted financially so best thing is to release the house back onto the market and let someone else have it who needs a secure home to live in… the housing crisis is very real and very painful for those on the wrong side of it.

He may have to pay tax but surely that’s fair enough given that it’ll be on capital gains only, so he’ll simply be giving a proportion of a load of unearned wealth back to government to spend on health, roads, schools etc when the country badly needs it…

Worth looking at either a stock market investment focussed on income rather than growth or just a simple fixed term bond for lower risk…

Anyone who thinks BTL is worth it simply isn’t paying attention… the law changes in April…

This is the most likely outcome, no problem with paying tax.

This is the most likely outcome, no problem with paying tax.

Good man. You’re the first person in a number of years who’s responded with any level of understanding to my argument that unaffordable housing is a crisis for all of us which needs sorting and that hoarding of a scarce essential resource in a time of crisis is a pretty unpleasant thing to do to other people..

Buy brant’s airfix collection?

Give the house to you and your siblings.

Give the house to you and your siblings.

As much as I’d like his money, How does this provide him with income or readily available cash and a lump sum to buy his new car?

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