My suggestion: no matter how good your intentions, stay away from it if you don't know what you're doing.Any suggestions appreciated
She also owns her home, with no mortgage, and has sufficient day to day income, from the state pension and from renting a flat attached to the house.
Might be a better idea to make sure she has a will madeI’m trying to help my 76yo mother-in-law get her messy finances in order. Big thanks in advance for any advice.
She was badly burned by overexposure to Irish banking shares a decade ago, and is understandably nervous about making the right decisions.
Long story short: she has a handful of investments, some quite ill-advised, worth about €850k. I’m guessing these should be consolidated into an ARF, or a similar type of retirement vehicle. I’m wondering:
She also owns her home, with no mortgage, and has sufficient day to day income, from the state pension and from renting a flat attached to the house.
- Is this the right approach?
- What considerations should she keep in mind?
- How should she go about it? Especially keen to minimise tax liability along the way
The investments include €150k in two (very poorly) managed funds with one of the big firms; €325k in a dozen shareholdings in UK and Irish bluechips; €300k in State Savings Certificates and Bonds; and €90k in a fixed deposit account.
At her age I think it’s crazy to hold on to these. I just don’t want to screw up while selling them and moving the proceeds, and find out that she’s hit with avoidable CGT or other costs.
Any suggestions appreciated.
I agree that this is a big concentration risk.That €150k is in two Aviva funds that have barely held their value over five years, when she would have seen healthy returns from a vanilla market strategy. The vast majority of that is in an Irish property fund. And among the individual shareholdings, €260k is in two companies (Diageo and CRH). This also seems way too concentrated, possibly risky.
I agree that this is a big concentration risk.
This is more of a personal question than a financial one.
Every family has its own dynamics and there are presumably other siblings. I guess you have to balance long term the gain in likely investment performance against being seen to be interfering.
I've known a few families where the best of intentions get misunderstood.
I was only joshing, but it may have come across as offensive. So sorry and best of luck.And @Allpartied -- good to hear your perspective. It's not my money so no offence taken
Even if the figures were much smaller, the principles should be similar and someone else might learn from the discussion. I've contributed and tried to help others on other AAM forums. I'll update this thread with whatever independent advice we get
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