Investments for old person

noelfitz

If an old person (age 77) has some money to invest that he does not need where should he invest, given that bank interests are so low? I welcome general suggestions.

If he invests in a managed bond and then dies can the person who inherits it continue to hold it without extra costs?

Thanks.

cnocbui

One option would be a dividend paying ETF (Exchange Traded Fund) that charges low fees. One such option would be the Vanguard FTSE All-World High Dividend Yield UCITS ETF (VHYL) paying 2.8% currently via quarterly payments: https://www.vanguardinvestor.co.uk/investments/vanguard-ftse-all-world-high-dividend-yield-ucits-etf/distributions

An ETF is traded on the stock market. The company issuing the ETF buys a basket of shares they have selected to meet the criteria of the particular ETF. With a dividend focused ETF, those companies pay their dividends to the ETF issuer , who deduct their fee and than disburse the remaining dividends to the investors.

The price of ETF (value of your invested capital) will tend to rise and fall, reflecting the vagaries of the share market in general.

topper_harley2

Do they care at 77 if they aren't getting huge interest? I would have imagined capital protection would be higher on the list of priorities? State savings would be risk free opp option if they are willing to lock in for free years.