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My mum has 60K to invest - any suggestions?

(38 Posts)
FREAKshow Fri 14-Sep-07 14:56:52

Due to downsizing her property, my mum has released 60K of equity which she would like to invest to pass on to me and my LO. She's leaving what to do with it up to me, and I'm crap at this. What on earth should I do to make the most of this money? I'm clueless.

NotAnOtter Fri 14-Sep-07 14:57:34

northern rock?

Pennies Fri 14-Sep-07 14:57:46

I'll look after it for you.

mosschops30 Fri 14-Sep-07 14:58:24

lol at notanotter grin

ledodgy Fri 14-Sep-07 14:58:55

property?

FREAKshow Fri 14-Sep-07 14:59:43

Thanks for these studied responses!

So you're all as clueless as me!

Quootiepie Fri 14-Sep-07 15:00:05

Property or NS&I bonds (but they have a limit). Can she pass it onto you nbow to invest in your name to avoid tax?

CristinaTheAstonishing Fri 14-Sep-07 15:00:20

Put some in Premium Bonds and you get the thrill of potentially being a millionaire every month.

FREAKshow Fri 14-Sep-07 15:00:33

ledodgy, I reckon property prices might go down quite a bit soon.

ledodgy Fri 14-Sep-07 15:00:38

Pmsl at northern rock and why are they taking their money out have they not heard of the Wall Street crash....BTW does anyone know if they do go bust if we have a mortgage with them will it mean we don't have to pay it back? [selfish and hopeful emoticon.] grin

jangly Fri 14-Sep-07 15:01:15

Go on Moneysavingexpert.com and find several savings accounts with high interest. Or if you want to be more adventurous with it, get yourself a good independent financial advisor

tatt Fri 14-Sep-07 15:01:27

make the most of it for who (your mum or eventual recipients grin), how old are they, what other savings/ income do they have? It depends on things like your attitude to risk. Have a look at Sainsburys bank as they are offering a good interest rate. There are also some good building society accounts if she'd like security. She should look at an ISA if she hasn't got one.

ledodgy Fri 14-Sep-07 15:01:37

*By they I meant customers

jangly Fri 14-Sep-07 15:03:55

ledodgy - I think they would sell it all on, so you would still have to pay!

Cammelia Fri 14-Sep-07 15:04:37

Is the investment going to be in your name so that you avoid inheritance tax?

Cammelia Fri 14-Sep-07 15:05:28

ledodgy, your house would be repossessed by the receivers

FREAKshow Fri 14-Sep-07 15:05:54

Thanks everyone.

I've had a look at long term savings accounts and have found one that gives 6.4% gross interest. Have got an appointment to improve her ISA - currently it's a cash ISA, but have been told to mix it with a stocks and shares ISA for a bigger return.

Will look into NS&I. Premium bonds - like the lottery! Do you get interest with premium bonds? (Don't think so but not sure.)

regarding eventual recipients, thank god for my mum - i've got no pension to speak of!

EmsMum Fri 14-Sep-07 15:06:37

Index linked National savings is often a good bet.

Index tracker stock market type things for long-term investments maybe.

Cammelia Fri 14-Sep-07 15:06:49

no interest with premium bonds, capital return only

Cammelia Fri 14-Sep-07 15:07:54

But if its not in your name you may have to pay inheritance tax (40%)

FREAKshow Fri 14-Sep-07 15:07:57

Cammelia, no, in her name. That 60K and her property are not worth over £250k, which is the threshold for inheritance tax, innit?

Cammelia Fri 14-Sep-07 15:08:46

It will depend what her estate is worth at the time of her demise (sorry to put it so bluntly)

FREAKshow Fri 14-Sep-07 15:09:49

true. and the way property prices have been rising.... but I still think they will fall substantially.

tatt Fri 14-Sep-07 15:13:08

also if in her name and she needs long term care the state could take most of it.

Stock market investment is risky - even with a tracker. Fine if you are all happy with risk but you need to be prepared to lose money before investing in the market.

bossykate Fri 14-Sep-07 15:15:21

you should be asking the professionals, imho!

Independent Financial Advisers

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