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Legal & money

Too much money???

(36 Posts)
Woody Fri 07-Oct-11 12:58:47

I know this is a strange question but does having a big savings pot worry anyone? I am an only child and about 7 years ago the last of my parents died leaving me the family home which I then sold - they would never have believed what it was worth considering what they paid for it! I now have more than enough money to last me but it worries me so much - how and where to invest it? - I try to invest in things that I think they would have approved of but it is such a nightmare having to move accounts around trying to get the best rates etc. I feel it is my duty to make the best use of it as they struggled to buy the house all those years ago. I know I could give some to charities which they were interested in and I did that at the time as well as giving some to the grandchildren. I know I should be grateful that I dont have "lack of money" worries and I am but having too much seems a problem too!!

jinglej Fri 07-Oct-11 13:37:11

Well, you're never going to keep up with inflation at the moment Woody so I wouldn't worry too much. You could put some in fixed rate bonds for, say, three or five years, and have the rest readily available in easy access accounts. I wouldn't bother chasing better interest rates too much, except within the same bank. Make sure they upgrade it as new issues come out.

Then just enjoy it!

jinglej Fri 07-Oct-11 13:38:41

And keep inheritance tax in mind. Perhaps give some to the kids in time (hopefully) to avoid them having to pay tax on it.

susiecb Fri 07-Oct-11 14:15:46

Give it away Woody and stop worrying about it.

gangy5 Fri 07-Oct-11 16:51:12

When my over 90 year old parents died within 6 months of each other they left us quite a nice money pot. I got immense pleasure from giving some away to my 2 boys and their families. Both families were both then able to enlarge their houses by adding a master bedroom with ensuite bathroom. I feel that doing this will have been a good investment for their futures.
With investing being rather risky at this moment, I can't see there being much chance of getting a return that will keep up with inflation.
woody if you have some to spare - give some more to the family and derive some pleasure now from doing so. When you're dead and gone you will not beable to experience that wonderful feeling!!

greenmossgiel Fri 07-Oct-11 17:08:36

Woody - give it to your family and see them gain the benefit of it while you're alive. It's not worth worrying about.

glammanana Fri 07-Oct-11 18:03:50

There would be no chance of me leaving anything for inheritance tax I would make sure my children had it first and pay the cost's of uni for my DGCs,DH and I have made sure that no tax's will be paid when we pop our clogg's I'll go on a massive spending spree first.If you are sure you are all set up financially Woody give your money away and watch any financial strain be eased on your family

jinglej Sat 08-Oct-11 10:03:34

Don't spend it all, or give it away, too soon Woody. Keep enough to keep a security wall round you. Even if it shrinks through inflation, it'll be better than being broke.

jinglej Sat 08-Oct-11 10:07:01

glamma, at what point do you think you will go on your spending spree? That, I reckon, is the difficult question. wink grin

glammanana Sat 08-Oct-11 10:23:03

Yes jinglej it is a difficult question, as long as we had a decent income allowing us to live comfortably and "in the way DH and I have become accustomed" Royal Wave I would be very happy,spending spree to me would not be OTT,but to make sure all aspect's of our comfort where taken care of,ie all household good's and future holiday's and treating of DGCs.

jinglej Sat 08-Oct-11 11:58:36

Love the royal wave Glamma. grin Quite right too.

Here is mine back to you - one duchess to another. grin

jackyann Sat 08-Oct-11 14:03:23

Well, if you don't want to come into a racehorse syndicate with me.....
I agree about giving it to family. Obviously we don't know what will happen in the future, but our grandchildren are likely to need money for education.
So seriously, I would find out about setting up a trust fund for them, with you in control.
I would certainly keep a family "rainy day" pot. When I was a HV, one of my lovely mums suddenly had a serious worry in her 4th pregnancy (having carried & delivered 3 with no worries). Her in-laws paid for a cleaner & nanny, which made all the difference.
You don't say what the financial situation of your children or wider family is. I have known well-off relatives who fund an annual get-together eg: rent a villa abroad for 3 weeks and invite all the family, or a hotel for a weekend. Having the money to enable things like this, is I feel, really lovely (I'm saving!)
Some time ago, dh & I decided to stop giving money regularly to charities (we still of course, sponsor people we know, attend fund-raisers etc.) and instead, we make our purchases & investments as ethical as we can. I appreciate your idea about custodianship of this money, but considering the social benefit of investment can be valuable.

gangy5 Sat 08-Oct-11 17:10:07

jackyann one of your ideas - making provision for a family holiday where you can all gather together has been something that we have done 3 times. I can't quantify the pleasure we have derived from this - all the holidays have been memorable and well worth the cash!!

Barrow Sat 29-Oct-11 11:21:59

When my husband died he left me financially secure and I have a similar problem in what to do with the money. I have decided on fixed rate bonds for 1 year - that way I know the money is safe and after a year if interest rates have gone up I can look at it again.

Whilst giving money away to family and charities is all very worthy those of us without family (I don't have children) also have to think about our care when we get older and more infirm. The time may come when I will be unable to live alone and I will need sufficient funds to finance a move into a residential/nursing home. Those of you with children could confidently make gifts to them and grandchildren, safe in the knowledge that if and when the time comes when you need help you have the safety net of family.

jinglej Sat 29-Oct-11 11:37:07

Barrow, I think fixed rate 1 year Bonds is a good way to do it. So long as you keep enough in instant access accounts. I find Birmingham and Midshires are good. They make no difficulties about getting your money to you. Very quick and straightforward.

em Sat 29-Oct-11 21:29:34

I find transferring the annual allocation into ISA's is best for me and I mentally 'ringfence' them and don't regard them as easy access. Otherwise it's 1 or 2 year fixed rate bonds. Was disappointed in the past with the performance of long-term bonds (PEPs and TESSAs) so now prefer to keep it simple. I too worry about keeping enough for possible long-term care but don't see the solution as obtaining funding from family.

jinglej Sat 29-Oct-11 22:15:43

Well, I think we might have to start living off of our Isas. Has anyone else tried to leave the pension pot in place until things look up? (hollow laugh)

Barrow Sun 30-Oct-11 11:59:58

em I wasn't suggesting that your solution for long term care would be obtaining funding from family, but they would I am sure out of love for you, help with care, especially so if you have helped out with finance for deposits or university fees.

The point I was trying to make (and probably failing) is that those of us without family don't have the reassurance of knowing there was family in the background to watch out for us.

supernana Sun 30-Oct-11 12:38:56

Woody How I would enjoy being in your fortunate position. My concerns are - how do we continue to cope in our seventies, without sufficient income and no hope of been gainfully employed. We struggled to build our wee home and have loved every moment we've lived in it. Now, though, the time is fast approaching when we must take drastic action. Sleepless nights because one has too much money are surely preferable to those spent worrying over having so little short-term security. smile

Gally Sun 30-Oct-11 13:20:17


Barrow Sun 30-Oct-11 14:18:07

supernana I agree with you 100%. I know I am in a fortunate position but I never forget there are others so much worse off than I, through no fault of their own. I truly hope you are able to find a way to stay in your home as I know I would be heartbroken to leave the home my husband and I built together, every room has reminders of him.

supernana Sun 30-Oct-11 15:59:45

Barrow thanks

frozen Wed 23-Nov-11 11:34:13

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Oxon70 Thu 24-Nov-11 08:23:37

Yes I would enjoy having too much, too!
I had some to spare when I moved house for a while, but am now living partly off my capital.....and wondering how long it will last

frozen Sat 26-Nov-11 12:24:24

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