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AIBU?

Share your dilemmas and get honest opinions from other Mumsnetters.

Original poster

To ask for help with financial pickle

880 replies

ShoebillStork · 19/06/2021 18:11

In 2009 FIL had a win on the Premium Bonds. He gave us £10,000 to invest for DS (at low risk) and the money to be given to DS when he's 18.

I put the money towards a loft conversion. DS is 18 soon and I'm due to remortgage for a better rate. How much do I need to release for him so he gets the £10k plus what it might have gained in interest since 2009.

And should I encourage DS to get a Help to Buy ISA with it?

OP posts:
Redcart21 · 20/06/2021 00:00

In 12 years, it’s been a pretty rubbish investment if it’s now only £14k OP. It’s actually worth less now than when FIL gave it to you in real terms

SofiaMichelle · 20/06/2021 00:01

This fund has averaged 24.6% p/a over the last 10 years and is available as a junior ISA too.

£10k initial investment works out at around £140k over 12 years.

To ask for help with financial pickle
WeBuiltThisBuffetOnSausageRoll · 20/06/2021 00:04

he seems to have been very happy over the years with her choice of purchase with the money that she borrowed from him when he had no need for it and is now repaying with interest ready for when he does.

Nothing the OP has said shows the son having any knowledge of this investment, so nothing to be happy about. He had no choice.

Of course he had no knowledge of the financial investment itself - because he was 6. What he did have knowledge of was the fact that he now had his own "cool" new bedroom, all to himself, which OP confirms he has really enjoyed having. I think saying he had no 'choice' is harsh - I would use the word 'agency'.

As an adult, his DM did have agency - and the choice that she made on his behalf has proven to be one with which he has been very happy. And he will be very happy once again when he gets his £10K plus interest.

smallgoon · 20/06/2021 00:08

@pink1173

Dear god... I simply do not get Mumsnet today! Who are you people? I don’t know anyone like you in real life? OP you did what was best for your family ad your son has a great room to himself and will now get his lump sum. How anyone thinks there is an issue with this isn’t beyond me. Go with the average interest and put it in an ISA for your son. Job done and don’t think any more about it.
This. So many self-righteous weirdos in this thread.
WeBuiltThisBuffetOnSausageRoll · 20/06/2021 00:12

This fund has averaged 24.6% p/a over the last 10 years and is available as a junior ISA too.

£10k initial investment works out at around £140k over 12 years.

The details underneath make it explicitly clear that this was not a low-risk investment - that you could get back less than you originally invested. Of course you can gain massively on any investment if you're willing to risk (gamble on, even) the real likelihood that you could lose the whole lot.

What if OP had invested the money in this fund (in direct contravention of the giver's instructions) and it had plummeted. She'd be torn into now for losing her DS money by disobeying the 'terms' of the gift. I really don't think OP can win here.

sweeneytoddsrazor · 20/06/2021 00:14

There may or may not be an issue with how the OP invested the money which I guess is what this thread is about, but there should be a huge issue with a man who has allowed his father to gift one of his sons a huge amount of money whilst ignoring the other one.

caringcarer · 20/06/2021 00:17

If you had invested his money in a stocks and shares ISA over the years it would probably be worth upwards of £15k.

caringcarer · 20/06/2021 00:19

How much has your house added to value over time due to your son's money being spent on it? Does fil.know what you did?

SofiaMichelle · 20/06/2021 00:25

The details underneath make it explicitly clear that this was not a low-risk investment - that you could get back less than you originally invested. Of course you can gain massively on any investment if you're willing to risk (gamble on, even) the real likelihood that you could lose the whole lot.

The details make nothing of the sort explicitly clear. The same disclaimer accompanies all investment funds - the FCA insists on it.

That fund is not high risk at all - I'm invested in it and can tell you the underlying stocks are Apple, Nike, Coke, Amazon, Netflix, Diageo, Colgate and a couple more. Hardly the equivalent of roulette.

caringcarer · 20/06/2021 00:26

A huge pity the fool did not invest the money for child himself. He would have got a huge payout from s stocks and shares ISA.

caringcarer · 20/06/2021 00:28

I can't think the child's hands are grubby when you took the money meant for child and spent it on your home. If anyone's hands are grubby I would have to say yours were OP.

SofiaMichelle · 20/06/2021 00:31

By the way, I'm not for a minute suggesting that OP needs to pay her DS £140k. Just pointing out that well invested it would be worth a lot of money today, not just a couple of grand more.

caringcarer · 20/06/2021 00:36

I have read your updated and am appauled at your lack of shame for what you did without consent from giver. if I was your child I would take you to court for stealing.

Whattodoffs · 20/06/2021 00:50

@0None0.-.oh please, shut up!

Kisskiss · 20/06/2021 00:57

@caringcarer

A huge pity the fool did not invest the money for child himself. He would have got a huge payout from s stocks and shares ISA.
ThAts not a very nice thing to say Hmm

Anyway the ftse 100 TR index has actually only returned 100 pct since 2009, so actually the 10k is now 20k, not squillions. Most financial advisors would not class equities as a low risk investment though…

CalamityJaneDoe · 20/06/2021 01:11

I wonder if FIL had passed and DS knew nothing of it, would you have given it back at all?

CandyLeBonBon · 20/06/2021 01:14

Should've invested in GameStop shares! Grin

Hawkins001 · 20/06/2021 01:16

On the mortgage, just don't over leverage the property,

Hawkins001 · 20/06/2021 01:18

@CandyLeBonBon

Should've invested in GameStop shares! Grin
I think there was a lot more to it, although if you want a good film, check out margin call.
Geauxtigers · 20/06/2021 01:19

I invested 8k in Disney shares in April 2020 and they're now worth 11k.... So it depends what you would have invested your DSs money in.

bp300 · 20/06/2021 01:30

@ShoebillStork

if you invested in a cas ISA it would be worth over £16k and if invested in a stocks and shares ISA over £33k. If you want to be really fair you should either aim to give him the higher amount or at least something in the middle as an average of the 2 so £24 - £25,000

Stocks & shares would not - in FIL's opinion - be the low risk investment that he specified. No way is he getting £20k plus. I'm going to be supporting him through uni!

Stocks and s shares were very low risk in 2009 as the price to earning ratio was at a record low.
CandyLeBonBon · 20/06/2021 01:30

@Hawkins001 I've got a mate who actually did invest in GameStop shares. Just bought a house outright with the proceeds! Shock

Hawkins001 · 20/06/2021 01:34

[quote CandyLeBonBon]@Hawkins001 I've got a mate who actually did invest in GameStop shares. Just bought a house outright with the proceeds! Shock[/quote]
I must admit those that did invest at the time, did quite well, I still not sure why robin hood restricted who could buy shares ect, I suspect there may be more to the whole story than just public vs big corporations and wall street, although that could just me being cynical after watching the film margin call.

MissConductUS · 20/06/2021 01:38

We bought Amazon in 2009 for about $90 per share. It closed on Friday at over $3,400.

ilovesooty · 20/06/2021 01:54

@WiddlinDiddlin

Honestly OP.. you should clearly have stuffed it into a tin and kept it under your bed until your DS is 18.

ANY other option would be labelled grabby, thieving, selfish etc etc by some of this lot...

I was just thinking it sounded a bit like the parable of the talents...