Saving for children? Junior ISA risks?

Saving for children? Junior ISA risks?

Author
Discussion

oldaudi

1,306 posts

157 months

Tuesday 20th January 2015
quotequote all
schmunk said:
And when she wants to buy her first house, she'll..?
The whole reason I did it was so that they can save anything they earn and put towards housing. When I was old enough I wanted to move out as soon as I could for freedom. Although the idea of my kids moving out scares me at the moment the time will come, although they are only 8 and 5. I set up a pension for them several years ago so they don't need to worry about a pension for the first few years of their working life and they can save the money they earn for housing. They have CTFs and Ive been saving into a 10 year Child Bond for them which matures when the eldest is 14, which I will reinvest for them before handing it over. Work colleagues think Im mad but I want to give my children a financial head start rather then loads them up with ipads and expensive plastic like some people I know.

I know the risks with it moving from 55 years on wards, inflation, currency risks etc and the fact it might be worth feck all by the time they want it. But I want the relationship with my children where they are financially aware, it was something my parents never did and I want to improve on that

If they want help with a deposit on a house I might be able to help too, but I figured getting a pension started for them was also suitable.

Edited by oldaudi on Tuesday 20th January 11:06

ATV

Original Poster:

556 posts

194 months

Sunday 25th January 2015
quotequote all
gregf40 said:
I wouldn't pick specific stocks though - just buy a FTSE100 or 250 tracker. Makes life much easier.
I had considered that but the tracker seems to attract additional charges and I wondered if I couldn't do better myself just sticking to blue chip companies and cutting out the deadwood each year.

But I'll look further into it, no less than the great Warren Buffett always recommends trackers over private investing.

Skyedriver

17,655 posts

281 months

Sunday 25th January 2015
quotequote all
The "blow it all at 18" worries me, my laddy has a CTF at the minute. Going by my past history, it would be nice to have something for him that was divorce proof....

Mr Trophy

6,808 posts

202 months

Tuesday 27th January 2015
quotequote all
OP,

Some client's set up a separate account (under their own name) but have the designation as their child.

Therefore, the money is always under their name. For example - Unit Trust.

CaptainSensib1e

1,432 posts

220 months

Tuesday 27th January 2015
quotequote all
Where do you get 5% return from? I can pretty much guarantee you won't get a 5% annual return, but over 18 years you are almost certain to do better from shares than just having cash.

ATV

Original Poster:

556 posts

194 months

Sunday 15th February 2015
quotequote all
CaptainSensib1e said:
Where do you get 5% return from? .
It was in the advice given by one of the other posters to get a tracker (with the usual caveat " Past Performance is not an indication of future performance.")

http://www.hl.co.uk/funds/fund-discounts,-prices--...

The total return over 5 years was 56.1%

oyster

12,577 posts

247 months

Monday 16th February 2015
quotequote all
ATV said:
CaptainSensib1e said:
Where do you get 5% return from? .
It was in the advice given by one of the other posters to get a tracker (with the usual caveat " Past Performance is not an indication of future performance.")

http://www.hl.co.uk/funds/fund-discounts,-prices--...

The total return over 5 years was 56.1%
Have a look at 7 year performance!

5 years is nice and convenient, given where stocks were in 2009/10.

gregf40

1,114 posts

115 months

Monday 16th February 2015
quotequote all
CaptainSensib1e said:
Where do you get 5% return from? I can pretty much guarantee you won't get a 5% annual return, but over 18 years you are almost certain to do better from shares than just having cash.
5% is conservative IMO. Over 18 years with dividend reinvestment 5% should be the worst case scenario.