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What would you do with a £100k!?!

14 replies

jollymum · 03/08/2006 15:14

My dad who's 80 has just got £100k from selling his flat. I need expert help to invest it for him, has to be easily accessible in case he needs care later in his life but with a decent rate in interest. Do IFA have to be totally honest or do they swing with the people they want to? Any ideas gratefully received..thanks

OP posts:
Norah · 03/08/2006 15:15

I'd buy a holiday flat and let it out - bloody good returns ! Plus you could have free hols in it for a few yrs !

SenoraPostrophe · 03/08/2006 15:35

IFAs are probably the worst-names professionals there are. they are not independednt because they are paid in comission, therefore are likely to recommend those with the best comission. I say that, it's possible there's an honest one. Look for a recommendation though.

holiday flat might work but the money isn't exactly easily accessible and it can be a gamble - there is a glut in some parts of spain for example. personally I'd go for several thou in a high interest savings account and the rest in some kind of fund. but I'm no expert!

frogs · 03/08/2006 15:55

If this is his life-savings, and he's 80 you want to take absolutely no risks with it. In this scenario (unless he has other substantial funds readily available to him) he may need the money at any time and he doesn't have a sufficiently long time-frame to ride out the ups and downs of the property market or the stock market.

Essentially that means a range of high-interest, no-risk cash accounts or possibly savings certificates with no more than a minimal tie-in period (3 months or so). Don't even think about share-based investments or property -- if the investment loses half its value at exactly the time your Dad needs the money then you're in real trouble.

Selecting a range of good cash accounts is not brain surgery if you read the Money section of a few of the weekend broadsheets, the best-buy tables will show you which accounts have the highest interest. Watch out for accounts with high headline rates that drop after 6 months, though some of the papers do tables that show you the most consistent accounts over the past 5 years. Some of the best deals are currently internet-based accounts, but given your father's age you and he need to decide whether he's happy to operate that kind of account himself or whether he's prepared to let you take charge of the investments on his behalf. Alternatively the remaining building societies often have better deals than the high street banks. But you do need to keep an eye out every 6 months or so to check that the interest rate hasn't taken a dive.

If you really feel you need an IFA, go for a fee-based one where you pay a fee for the appointment but the IFA doesn't get any commission. The kind of investments your Dad needs won't generate commission, so the risk with a commission-based adviser is that they either won't take the case on, or they'll steer him towards unsuitable but commission-generating investments.

I've just done a similar thing for my parents, which is why I'm up to speed on it.

nannyk · 03/08/2006 16:21

My Dad is an IFA, and a very honest, knowledgeable and down to earth one (and I'm not just saying that cos he's my Dad!!) He has built up his own business over the years and has a great reputation. He's based in Herts, but does nationwide work. If you'd like his details please let me know.

merrily · 03/08/2006 16:32

Try looking at Money Saving Expert for information and advice about investing money, using financial advisers, etc.

Millie1 · 04/08/2006 22:36

Good advice from Frogs ... look around local banks & societies. You should get fixed rates with terms of anything from 1 mth to 12 mths to 5 yrs. Would advise shorter terms. You could split the money up if you and your Dad wish - put some away for say 3-6 months and have some in an instant access savings account. Main thing is that it's accessible and he doesn't worry about it being tied up for prolonged periods.

With IFA's, you may find that many are reluctant to take on investments for the elderly simply because the best rates are on longer terms.

HTH

handlemecarefully · 04/08/2006 22:58

My dh is a financial adviser too - and is enormously professional. I take exception to that sweeping generalisation SenoraPostrophe - consider yourself chastised!

handlemecarefully · 04/08/2006 23:00

Oh and the money section of many of the broadsheets is best used for fish and chip paper according to dh (who prior to becoming a financial adviser had a successful career in banking)

MrsSpoon · 04/08/2006 23:05

I'm with Norah, you could even buy abroad.

handlemecarefully · 04/08/2006 23:07

Quite like the holiday apartment idea too

MrsSpoon · 04/08/2006 23:14

Can recommend this company if you fancy Spain, they also have connections/are part of a company in England.

crunchie · 04/08/2006 23:21

What I would do and what you should do are totally different. I would invest in property, your dad shouldn't. He will need a certain amount of accessible cash. Frogs advice is probably spot on

essbee · 04/08/2006 23:22

Message withdrawn

JanH · 04/08/2006 23:24

Where is he going to live if he's sold his flat?

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