Where to Invest - £1600 pcm
Discussion
My wife is set to receive £1600 pcm over the next 7-8 years a part of her deceased fathers estate (made up of 2 x protected pensions). It cannot be converted to a cash lump sum, it has to be paid to a beneficiary (sp?) ie.my wife who is executor of his will.
At the end of the 7-8 years the money will be split 5 ways.
How can this money be best invested for this length of time?
It will not be necessary to access the money before the 7-8 years is up.
Thanks for reading.
At the end of the 7-8 years the money will be split 5 ways.
How can this money be best invested for this length of time?
It will not be necessary to access the money before the 7-8 years is up.
Thanks for reading.
GreatGranny said:
My wife is set to receive £1600 pcm over the next 7-8 years a part of her deceased fathers estate (made up of 2 x protected pensions). It cannot be converted to a cash lump sum, it has to be paid to a beneficiary (sp?) ie.my wife who is executor of his will.
At the end of the 7-8 years the money will be split 5 ways.
How can this money be best invested for this length of time?
It will not be necessary to access the money before the 7-8 years is up.
Thanks for reading.
I would suggest you speak with an independent financial adviser, you can find one on unbiaised.co.uk.At the end of the 7-8 years the money will be split 5 ways.
How can this money be best invested for this length of time?
It will not be necessary to access the money before the 7-8 years is up.
Thanks for reading.
There are a number of options for your wife, and the IFA will assess your wife's attitude to risk and then recommend an appropriate product. I'd expect this to have an appropriately varied asset allocation, which means the money will be invested in a variety of sectors and geographical locations.
There will be a small fee for the advice which will be disclosed, but I'd recommend that over letting your bank sell you the highest commisison paying product on their shelf with little concern about your wife's needs.
If she has an income at present paying it into a SIPP should work well.
She will get a tax credit up to her marginal rate for doing so.
(ie) She could get 50% tax rebate etc.
She can dump the funds in the SIPP into something super safe, of course its locked in till 55 but with the possibility of the tax rebate its a pretty good deal IMO.
DYOR YMMV ETC
She will get a tax credit up to her marginal rate for doing so.
(ie) She could get 50% tax rebate etc.
She can dump the funds in the SIPP into something super safe, of course its locked in till 55 but with the possibility of the tax rebate its a pretty good deal IMO.
DYOR YMMV ETC
Edinburger said:
I would suggest you speak with an independent financial adviser, you can find one on unbiaised.co.uk.
There are a number of options for your wife, and the IFA will assess your wife's attitude to risk and then recommend an appropriate product. I'd expect this to have an appropriately varied asset allocation, which means the money will be invested in a variety of sectors and geographical locations.
There will be a small fee for the advice which will be disclosed, but I'd recommend that over letting your bank sell you the highest commisison paying product on their shelf with little concern about your wife's needs.
Because of course IFAs don't ever recommend on the basis of commission....There are a number of options for your wife, and the IFA will assess your wife's attitude to risk and then recommend an appropriate product. I'd expect this to have an appropriately varied asset allocation, which means the money will be invested in a variety of sectors and geographical locations.
There will be a small fee for the advice which will be disclosed, but I'd recommend that over letting your bank sell you the highest commisison paying product on their shelf with little concern about your wife's needs.
By all means look speak to an IFA, fee paying certainly the best, but do get some recomendations as to who to use from friends and family.
If (big word if) she's thinking about market based investment have a glance at ETFs, nice and cheap way of investing and availble via online brokers, can also be bought in ISAs for a little added tax advantage.
So your wife has a sole fiduciary duty to the other four people to maintain the investments ? If so you are probably just looking at the highest paying 90-day savings account, and potentially switching the accumulated funds once a year or so. Or do the other people have a view on investment direction ? If so you are probably best opening an account with a low cost provider like Hargreaves, and buying something each month like an index ETF which represents the group's investment wishes (eg general UK market, US wider market, Euro blue chips, etc etc).
ellroy said:
Edinburger said:
I would suggest you speak with an independent financial adviser, you can find one on unbiaised.co.uk.
There are a number of options for your wife, and the IFA will assess your wife's attitude to risk and then recommend an appropriate product. I'd expect this to have an appropriately varied asset allocation, which means the money will be invested in a variety of sectors and geographical locations.
There will be a small fee for the advice which will be disclosed, but I'd recommend that over letting your bank sell you the highest commisison paying product on their shelf with little concern about your wife's needs.
Because of course IFAs don't ever recommend on the basis of commission....There are a number of options for your wife, and the IFA will assess your wife's attitude to risk and then recommend an appropriate product. I'd expect this to have an appropriately varied asset allocation, which means the money will be invested in a variety of sectors and geographical locations.
There will be a small fee for the advice which will be disclosed, but I'd recommend that over letting your bank sell you the highest commisison paying product on their shelf with little concern about your wife's needs.
By all means look speak to an IFA, fee paying certainly the best, but do get some recomendations as to who to use from friends and family.
If (big word if) she's thinking about market based investment have a glance at ETFs, nice and cheap way of investing and availble via online brokers, can also be bought in ISAs for a little added tax advantage.
Not sure I'd use ETFs or any listed security for this sort of investment, but I'm not an IFA.
Carefully....
I would ask an IFA for a list of funds used when money is put into trust.
These funds typically do not invest in Tabacco, Alcohol, gun runners and drug dealers.
This will protect her from any problems re the other four persons.
Object should be to beat inflation. (maintain value)
I would ask an IFA for a list of funds used when money is put into trust.
These funds typically do not invest in Tabacco, Alcohol, gun runners and drug dealers.
This will protect her from any problems re the other four persons.
Object should be to beat inflation. (maintain value)
ringram said:
If she has an income at present paying it into a SIPP should work well.
She will get a tax credit up to her marginal rate for doing so.
(ie) She could get 50% tax rebate etc.
She can dump the funds in the SIPP into something super safe, of course its locked in till 55 but with the possibility of the tax rebate its a pretty good deal IMO.
DYOR YMMV ETC
Thanks for all replies.She will get a tax credit up to her marginal rate for doing so.
(ie) She could get 50% tax rebate etc.
She can dump the funds in the SIPP into something super safe, of course its locked in till 55 but with the possibility of the tax rebate its a pretty good deal IMO.
DYOR YMMV ETC
ringham - the money has to be available to divide at the end of the 7-8 years equally between my wife and her 4 brothers and sisters when the payments end.
She needs to be VERY careful.
As an executor she has a number of duties. She fall foul by being overly risky with the investment (hence losing it) and by being overly prudent and not getting a return.
If I was her, I wouldn't do it at all.
If she has to, she will need to pay a decent lawyer for some advice before she sees an IFA.
As an executor she has a number of duties. She fall foul by being overly risky with the investment (hence losing it) and by being overly prudent and not getting a return.
If I was her, I wouldn't do it at all.
If she has to, she will need to pay a decent lawyer for some advice before she sees an IFA.
She has been working with a solicitor on her Dad's will and estate who seem to be very good (acted for her dad for over 30 years) so she may be able to ask them for advice. We also socially know a guy who is a IFA so I might just ask him for advice informally.
The alternative is to divey out the money 5 ways each month when its received but then it gets complicated with tax issues. I know it will just get gobbled up in our monthly income and we won't see the benefit unlike putting it away and getting a lump sum after 7/8 years.
The alternative is to divey out the money 5 ways each month when its received but then it gets complicated with tax issues. I know it will just get gobbled up in our monthly income and we won't see the benefit unlike putting it away and getting a lump sum after 7/8 years.
GreatGranny said:
Wouldn't it be classed as income therefore taxable?
You need a financial advisor IMO. The answer to the above and many others will only become apparent once they can understand the whole position.e.g. had her father reached retirement and began drawing on it, or was it still in accumulation?
GreatGranny said:
raptor600 said:
What tax issues?
Wouldn't it be classed as income therefore taxable?http://www.hmrc.gov.uk/inheritancetax/tax-when-you...
That's pretty straightforward ?
I wouldn't get invoolved in investing it.....just distribute it monthly and let people worry about it themselves.
It could get very messy....for example you could have to pay CGT on whatever is saved....you will have to pay income tax etc etc. Certainly don't put it in a SIPP that's just nonsense!!!
And god forbid something happens to your wife in the meantime if it's in her name.
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