Join our community of smart investors

I need enough to cover potential care costs

A reader wonders if he needs to change his investment approach
I need enough to cover potential care costs

Peter is age 67 and has been retired for seven years. His state and former workplace defined-benefit pension pay him about £54,000 a year. He also receives over £6,000 a year after expenses in rental income from a buy-to-let property, which is worth about £200,000. His main home is worth about £400,000 and both properties are mortgage-free.

Reader Portfolio
Peter 67
Description

Isa, Sipp and investment account invested in shares and funds, cash, residential property

Objectives

Build up sufficient assets to cover possible care costs, leave assets tax efficiently to family, make an overall positive return, reduce number of direct shareholdings

Portfolio type
Investing for goals

“I need to ensure that I will have enough assets to cover possible care costs in the years to come,” says Peter. “When I die I will leave a minimum of 10 per cent of my assets to charity, to reduce the amount of inheritance tax (IHT) my family will pay on the rest of my estate. 

To continue reading...
Join our Community of Smart Investors
  • Independent full-length company analysis
  • Actionable investment ideas and recommendations
  • Expert investment tools and data
  • Stock screens from Algy Hall
Have an account? Sign in