Large lump sum investment options

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paperclip

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Hi, my mother wants to sell our family home, so I'm looking for some advice on how best to invest the lump sum.

She's in her mid 70's, so a low-ish risk investment, but it would be good to get at least 3% return.

Had a chat with an investment firm, they said their fees were .5% a year, does that sound right?

Any advice is much appreciated.
 
Last edited:
paperclip said:
Hi, my mother wants to sell our family home, so I'm looking for some advice on how best to invest the lump sum.

She's in her mid 70's, so a low-ish risk investment, but it would be good to get at least 3% return.

Had a chat with an investment firm, they said their fees were .05% a year, does that sound right? Lets say the lump sum was 300k, that's 15k in fees a year, seems pretty high to me.

Any advice is much appreciated.
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5% is extremely high
 
paperclip said:
.05%, not 5%
Click to expand...
So 50 per year per 100,000?
Sounds very low.

About 0.5% would be more the norm, but it depends on what products you are talking about, and how much commission they are getting back from the product provider.
 
Firstly a fee of .05% on €300k equates to €150. Did you mean 0.5% which would be €1,500?
As for a “low-ish Investment “ that can cover a multitude of options. Clearly deposits will yield probably under 1% ( but with no manager costs). If you are seeking a higher return, then you must take greater investment risk. That might be a mixed investment strategy (eg a Managed Fund), which will be a mix of Equities, Bonds, Property, Cash etc.
You also need to consider your investment time horizon. Will your mother take a 5 to 7 year view? If she goes for a Managed Fund type investment, then she needs to accept that there may be times when performance is negative, even if likely ( but not guaranteed) to be positive over the whole period.

To get 3% pa will require her taking some investment risk, which might pay off or may not.
So she needs to be clear as to what is most important with this money. Is she more focused on a return of her money (capital security) or a return on her money (which requires taking some investment risk).
 
If you want 3% return you'll be in for the longish term, there's always the possibility you'll make nothing, maybe even lose some of your capital. She's not old but at that age she'll be taking risks with her money. You could always tell her to put it into the Post Office 10 year cert, pays 15% over 10 years tax free. It's the best and safest guaranteed option in the market today.
 
Conan said:
Firstly a fee of .05% on €300k equates to €150. Did you mean 0.5% which would be €1,500?
As for a “low-ish Investment “ that can cover a multitude of options. Clearly deposits will yield probably under 1% ( but with no manager costs). If you are seeking a higher return, then you must take greater investment risk. That might be a mixed investment strategy (eg a Managed Fund), which will be a mix of Equities, Bonds, Property, Cash etc.
You also need to consider your investment time horizon. Will your mother take a 5 to 7 year view? If she goes for a Managed Fund type investment, then she needs to accept that there may be times when performance is negative, even if likely ( but not guaranteed) to be positive over the whole period.

To get 3% pa will require her taking some investment risk, which might pay off or may not.
So she needs to be clear as to what is most important with this money. Is she more focused on a return of her money (capital security) or a return on her money (which requires taking some investment risk).
Click to expand...

Thanks, good advice, and yes, .5%
 
noproblem said:
If you want 3% return you'll be in for the longish term, there's always the possibility you'll make nothing, maybe even lose some of your capital. She's not old but at that age she'll be taking risks with her money. You could always tell her to put it into the Post Office 10 year cert, pays 15% over 10 years tax free. It's the best and safest guaranteed option in the market today.
Click to expand...

Thanks, will keep that as an option.
 
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