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Original poster

My mum has 60K to invest - any suggestions?

37 replies

FREAKshow · 14/09/2007 14:56

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.

OP posts:
NotAnOtter · 14/09/2007 14:57

northern rock?

Pennies · 14/09/2007 14:57

I'll look after it for you.

mosschops30 · 14/09/2007 14:58

lol at notanotter

ledodgy · 14/09/2007 14:58

property?

Original poster
FREAKshow · 14/09/2007 14:59

Thanks for these studied responses!

So you're all as clueless as me!

OP posts:
Quootiepie · 14/09/2007 15:00

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 · 14/09/2007 15:00

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

Original poster
FREAKshow · 14/09/2007 15:00

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

OP posts:
ledodgy · 14/09/2007 15:00

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.]

jangly · 14/09/2007 15:01

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 · 14/09/2007 15:01

make the most of it for who (your mum or eventual recipients ), 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 · 14/09/2007 15:01

*By they I meant customers

jangly · 14/09/2007 15:03

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

Cammelia · 14/09/2007 15:04

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

Cammelia · 14/09/2007 15:05

ledodgy, your house would be repossessed by the receivers

Original poster
FREAKshow · 14/09/2007 15:05

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!

OP posts:
EmsMum · 14/09/2007 15:06

Index linked National savings is often a good bet.

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

Cammelia · 14/09/2007 15:06

no interest with premium bonds, capital return only

Cammelia · 14/09/2007 15:07

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

Original poster
FREAKshow · 14/09/2007 15:07

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

OP posts:
Cammelia · 14/09/2007 15:08

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

Original poster
FREAKshow · 14/09/2007 15:09

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

OP posts:
tatt · 14/09/2007 15:13

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 · 14/09/2007 15:15

you should be asking the professionals, imho!

Independent Financial Advisers

SpeccieSeccie · 14/09/2007 15:20

Avoid property. Look into premium bonds which she can give you and your LO in your name as a one off gift (you'll need to check what the max is). Consider starting a pension.

Lucky you!