My mum got a large divorce settlement 2 years ago. She is 66 so this is in lieu of a private pension, and needs to last for the rest of her life. SHe does get state pension but otherwise has no income.
She is pretty overwhelmed by the whole thing, and after years of never having access to her own money (DF was a control freak, abusive, etc, a whole other thread there...) doesn't really have a clue how to manage it.
To say she is risk averse is an understatement: she currently has it all spread across about 7 different cash savings accounts (some ISAs, some not) and it is just languishing. She is scared of it running out and so is living like a pauper, which is heart breaking to watch as a quick mental calculation tells me it would last her about 60 yrs at her current rate of spend. (I have told her that but it hasn't really helped)
I have been trying to nudge her in the direction of investing perhaps just a small proportion of it, but she is very scared of it and i am worried she just thinks I'm being a bit of a bully.
I have suggested she buys an annuity with half of it, as a last resort really, they are about as safe as she can get, but it is kind of gut-wrenching because they such atrocious value for money. My hope is that, if she sees a monthly income that covers her bills and food, she might be less worried and more able to enjoy her retirement.
The other problem is that she won't go and see an IFA, as she doesn't trust them (long back story) and the IFAs I have spoken to won't give me any advice without her present (understandable)
Does anyone have any ideas, for investments/income products or just advice on how to talk to my mum about it without stressing her out?
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Please help me sort out my mum's finances: all assets and no income
11 replies
sleeplessbunny · 11/06/2013 14:08
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VanessaWarwick ·
15/06/2013 10:12
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HotheadPaisan ·
15/06/2013 10:22
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