Investments - Strategies, Ideas, Options & advice

[SwingsitlikeHogan]

My Mrs is inheriting a nice amount from her mum. One big question (we are mulling over many) we have is around us doing a deed of variation to her will to gift money to her grandchildren - about £20,000 each.

Our daughter will use it for a deposit for a house she is hoping to buy in coming few months. Our son has very variable monthly income being self-employed yet is paying a lot each month towards his student loan (he needs to ask why so much but that’s a separate question). Do we tell him we’d like him to use it to clear his student loan - thereby removing that drain on his income. He survives OK as he is…but could do with the extra each month…and we fear he is liable to burn off the £20k if we just give it to him to do with as he wants (has track record of what happens when we give him money is poor). A alternative would be to put it towards as SIP we want to set up for him - that he can then contribute to when he is able. Clearing his debt feels like what his nan would want…but is it the right think to do.

 

[Mudball]

My Mrs is inheriting a nice amount from her mum. One big question (we are mulling over many) we have is around us doing a deed of variation to her will to gift money to her grandchildren - about £20,000 each.

Our daughter will use it for a deposit for a house she is hoping to buy in coming few months. Our son has very variable monthly income being self-employed yet is paying a lot each month towards his student loan (he needs to ask why so much but that’s a separate question). Do we tell him we’d like him to use it to clear his student loan - thereby removing that drain on his income. He survives OK as he is…but could do with the extra each month…and we fear he is liable to burn off the £20k if we just give it to him to do with as he wants (has track record of what happens when we give him money is poor). A alternative would be to put it towards as SIP we want to set up for him - that he can then contribute to when he is able. Clearing his debt feels like what his nan would want…but is it the right think to do.

(personal opinion)

rather than give it outright and then finding that he has gone to Thailand for a 'trip of a lifetime'. It is probably a better to have it in a SIP so that he knows it is there if he needs it, but does not waver on his current path of working hard and paying things off.

The only pov is,... will you be able to generate returns from the SIP > the Student loan. if not then trying to extinguish a higher debt may be a better way to use capital. Either way it will better than using the money to buy a new car or any other liability.

Finally, i am assuming you son is mature enuf and you can have the conversation on how would be best use the money. It may take a few conversations before he finally makes the deicison.

 

[TheDiablo]

My Mrs is inheriting a nice amount from her mum. One big question (we are mulling over many) we have is around us doing a deed of variation to her will to gift money to her grandchildren - about £20,000 each.

Our daughter will use it for a deposit for a house she is hoping to buy in coming few months. Our son has very variable monthly income being self-employed yet is paying a lot each month towards his student loan (he needs to ask why so much but that’s a separate question). Do we tell him we’d like him to use it to clear his student loan - thereby removing that drain on his income. He survives OK as he is…but could do with the extra each month…and we fear he is liable to burn off the £20k if we just give it to him to do with as he wants (has track record of what happens when we give him money is poor). A alternative would be to put it towards as SIP we want to set up for him - that he can then contribute to when he is able. Clearing his debt feels like what his nan would want…but is it the right think to do.

Why don’t you drip feed it into a LISA over the next 5 years? You could get first 2 years done in the next month.

That way he can only use it toward a house deposit or have it for retirement. Also a nice 25% boost from Govt each year. If time horizon is 5+ years just VWRP and chill.

In the interim stick the balance in premium bonds or HYSA for him.

If he is low income, student loan shouldn’t be hitting all that much, and he may never pay the full amount off, meaning it is a wasted endeavour. He should absolutely never overpay.

 

[Old Colner]

As for the deadline
You can put 20k per year in, deadline is April 01 tax year , so you have a few weeks of this tax year left to put 20k in. Then as soon as the next year starts in April you can do another 20k
Current 4.5% paid monthly.

Sorry to be pedantic but it is quiet important and may make a difference which way @Slab proceeds, the deadline is actually 5th April and the new tax year starts the 6th.

 

[SwingsitlikeHogan]

When your pension fund drops 5% over the period of about a week…and you have a pretty good idea why…well that is bleedin’ irritating. Anyway…markets go up as well as down.

 

[hambugerpete]

When your pension fund drops 5% over the period of about a week…and you have a pretty good idea why…well that is bleedin’ irritating. Anyway…markets go up as well as down.

It's the uncertainty that doesn't go down well. Flip flopping does no one any good, tarrifs , no tarrifs... All that nonsense

 

[SwingsitlikeHogan]

Mrs is executor for he mum's estate - MiL has a SIP that my Mrs can either cash in or transfer the shares into a CIP. I don't know why she'd do the latter - we don't need the cash so would be reinvesting it in some form or another.. Does transferring shares into a CIP from an ISA have any advantages over other forms of investments - perhaps 'one-off' advantages specific to such a transfer.

 

[PNWokingham]

Mrs is executor for he mum's estate - MiL has a SIP that my Mrs can either cash in or transfer the shares into a CIP. I don't know why she'd do the latter - we don't need the cash so would be reinvesting it in some form or another.. Does transferring shares into a CIP from an ISA have any advantages over other forms of investments - perhaps 'one-off' advantages specific to such a transfer.

what is a CIP, never heard of that?

 

[PhilTheFragger]

When your pension fund drops 5% over the period of about a week…and you have a pretty good idea why…well that is bleedin’ irritating. Anyway…markets go up as well as down.

My Prufund pension is £750 up on last week
Oh the wonders of smoothing

 

[SwingsitlikeHogan]

what is a CIP, never heard of that?

It's a Halifax OEIC. Will probably cash in and stick it in an ISA.

 

[hambugerpete]

I've got a share scheme ending in June, share price down 20% in the last month. ,