My mum has 60K to invest - any suggestions?

[FREAKshow]

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.

30k is the max for bonds, but that is per person

I feel sure that you would like to invest in my new bathroom. The marble tiles are sure to appreciate. It's one of those tie-your-money-up for a long time jobbies.

i think you need to talk to not only independant financial advisers, but also perhaps a solicitor.

this could have complications with inheritence tax.

my pil have been told they have only a certain amount they can spend on their children per year, otherwise us kids get taxed on it!

apparently as long as they don't die within seven years, they can give us upto a certain amounts in 'gifts'.

i don't get it myself, so i would check on your individual cercumstances (and your mother's) otherwise you could end up giving the tax man a whole lotta money if/when she dies!!

Thanks speccieseccie, onlyjoking and casbie for all this advice - I think I should contact an ifo and a solicitor.

And thanks, hurlyburly, for an offer I can't refuse!

speccs, I'm curious about why you think we should avoid property?

With 60K to invest, you'll probably need to get a mortgage in order to buy anything and therefore get into debt even if it is a managable sort of debt. Unless you've got cash saved - but I'm guessing not if you haven't got a pension, I may have read things wrong, if so, apologies - then you, in theory, would not want to expose yourself to much risk with a sum this size. That means no borrowing against it, or putting it where you'll need to continually top-up the investment. In property terms 'topping up' would be upgrading and maintaining the building as well as servicing the mortgage. Instead you should be looking at safer and less demanding ways to make your money work, premium bonds being one.

I reckon the exceptions to this are borrowing if you want to start your own business and use some of the money as seed capital (go for it, if you do and you have an expertise) or investing in your own property to live in, though again I'd use the money to pay off any mortgage you already have rather than use it to increase the size of the house.

I realise that this is cautious advice but 60K is the sort of size of cash that could get swallowed by property. If it was me I'd be trying to play it pretty safe. But, then, I'm like that.

Thanks Speccie. That's good advice.

Northern Crock?

Get a good adviser and I'd seriously look at offshore banking with that sum of money!!! You can get a higher return. How about the banks in the Channel Islands - Royal Bank of Scotland and HSBC certainly have accounts over there. Just a thought. Get a few ISA's high yield ones and transfer the annual amount in every year for a while from your new piggybank.

But really get advice it's a lot of money. Congrats what a wonderful Mum .

In the current climate (Don't Panic???!!!), I would spread it around. The Financial Services Authority only guarantees 100% of first 2K and 90% on next 33k, so anything over this could be lost forever if a bank goes under. Of course Government bonds should be safe.

An ifa made a mess of my finances. I'm sure there are good ones around but you need a recommendation to find one.

Premium bonds have a lot rate of return (assuming you're averagely lucky - the fund pays out a lower amount than building societies).

One of my friends has a lump sum to invest and I suggested she split it (for safety) between Sainsburys bank and a local building society that offered a high interest rate. With 60k you can just split it into 2 and be reasonably secure.

As her estate doesn't look like being above the threshold you don't need to be fussing about IT.

yeah, aligpigiie, my mum's lervelee . Will look into offshore. Must look for an IFA and ask him/her.

tatts, what's an IT? (Interest Tracker?)

And if you don't mind me asking, how did an IFA mess up your finances? A friend of mine has one that has suggested she and her DH stretch themselves financially because they are in their 40s and don't have any pensions. So they have remortgated their old house to buy a new one, and are renting out the old one. I wasn't sure if this was good advice or bad.

I heard a couple barricaded the manager of a branch of Norther Crock in her office when she wouldn't let them take out their life savings of £1 million. The police were called. Given what sunshine and showers has said about the FSA's safety net, I really feel for them.

I'm well impressed at how savvy you lot are!

IT= inheritance tax. IFA suggested investments that were supposed to be low risk - and weren't. Fortunately we had not listened to him about everything he suggested.