Looking for a little financial advice, please

[tuglet]

Hi All

My mother has been saving for her retirement. She's amassed about 70K which has been sitting in a Nationwide account for many years, growing slowly as she makes deposits and gets a little interest each year. I can't help feeling that she could be making better interest on her savings, but I have no idea how.

If you had 70K saved, where would you put it at the moment? Minimal risk preferably.

Cheers
tuglet

[johnfm]

An Icelandic bank...

[Simpo Two]

Unfortunately minimal risk also means minimal returns - no doubt less than the rate of inflation.

[Exige77]

If She has a Nationwide account then get an e-savings account attached to it. She can transfer what she doesn't need into the e-savings a get a decent interest rate (relative !)

Maybe if you start suggesting to her a "new bank" it might put her off.

She obviously has confidence in Nationwide which is "safe"

Ex77

[tuglet]

Exige77 said:

If She has a Nationwide account then get an e-savings account attached to it. She can transfer what she doesn't need into the e-savings a get a decent interest rate (relative !)

Maybe if you start suggesting to her a "new bank" it might put her off.

She obviously has confidence in Nationwide which is "safe"

Ex77

She's stuck with Nationwide out of habit, and like a lot of "older" folk, she really doesn't like change. I will check out the e-savings account. Thanks.

[quotemehappy]

If she hasnt already tell her to open an ISA it is a tax free savings account, Nationwide offer a tax free cash ISA which offers circa 5% interest, she can also get a maxi cash ISA and invest in shares again tax free, I think you get £7k worth tax free each year. If she has done that then a high savings interest account or perhaps bonds are worth a go.

[Neil_H]

She should at least be filling her ISA quota each year as it's tax free (it's about 3k I think).

If she doesn't need to access it for a while I'd consider locking it into some government bonds.

Speak to an IFA.

[muley]

If she doesn't need the money in the short term she might put some in a term bond with an Irish Bank. They're underwritten by the Irish Government ...

If she fancies a little excitement she could purchase a stocks and shares ISA with some of the money - take a 5 year view on this though.

She should definitely use her cash ISA allowance; Nationwide has had pretty consistent rates for cash ISAs.


Usual disclaimers; don't blame me if it goes 'nipples north'.

Edited by muley on Tuesday 16th December 17:04

[Horse_Apple]

muley said:

If she doesn't need the money in the short term she might put some in a term bond with an Irish Bank. They're underwritten by the Irish Government ...

If she fancies a little excitement she could purchase a stocks and shares ISA with some of the money - take a 5 year view on this though.

She should definitely use her cash ISA allowance; Nationwide has had pretty consistent rates for cash ISAs.


Usual disclaimers; don't blame me if it goes 'nipples north'.

Edited by muley on Tuesday 16th December 17:04

Ireland is about as financially sound as Iceland. Avoid.

All this government guarantee nonence is just that. Absolute guff. If one of them fails the government doesn't have the money or future reciepts to honour their verbal obligation.

Ireland is an enormous mountain of debt, funded by the local banks, none of whom have made sufficient bad debt provisions to cope with what is hitting them already and only getting worse.

Stick to Blighty, spread it around and be prudent.

[DjSki]

Search www.moneysupermarket.com or the broadsheet press for the best rates....put £35k in two best UK offers and repeat every 6 months or so.....

[tuglet]

Thanks for all the advice. I've been telling her for years to get an ISA. I hate to think how much tax she's paid unncessarily over the years. If I hold her hand and fill in the forms for her, she might go for it this time. Can you have a cash ISA and a maxi cash ISA at the same time?

I've never heard of Government bonds. I will investigate further. Cheers.

[cymtriks]

tuglet said:

My mother has been saving for her retirement. She's amassed about 70K

Spend it.

She'll only live once and the absolutely stupidest thing that could happen is for this to end up being snaffled by inheritance tax or by an old folks home that will treat her exactlty the same as someone who arrives with no savings at all.

Holidays
Cars
Birthday blow outs
Treats for any grandchildren
Redecorate her home

Or failing the above convert it into something that you can easily carry away and call your own such as a work of art or a big telly. Just make sure that it is recorded somewhere as "your" thing which she can "borrow" for as long as she needs it.

[eldar]

tuglet said:

Thanks for all the advice. I've been telling her for years to get an ISA. I hate to think how much tax she's paid unncessarily over the years. If I hold her hand and fill in the forms for her, she might go for it this time. Can you have a cash ISA and a maxi cash ISA at the same time?

I've never heard of Government bonds. I will investigate further. Cheers.

Bonds can go up as well as down.... though they can for part of a maxi ISA.

[tuglet]

cymtriks said:

tuglet said:

My mother has been saving for her retirement. She's amassed about 70K

Spend it.

She'll only live once and the absolutely stupidest thing that could happen is for this to end up being snaffled by inheritance tax or by an old folks home that will treat her exactlty the same as someone who arrives with no savings at all.

Holidays
Cars
Birthday blow outs
Treats for any grandchildren
Redecorate her home

Or failing the above convert it into something that you can easily carry away and call your own such as a work of art or a big telly. Just make sure that it is recorded somewhere as "your" thing which she can "borrow" for as long as she needs it.

I keep telling her the same, but she's tight, or "prudent" as she prefers to be known.