Child Savings/Investments
Discussion
Blown2CV said:
I have a new baby daughter and want to start saving on her behalf. I know interest rates are bobbins at the moment for savers, so what is the best option for now? Clearly I'd want the option to move the money in a few years when the economic situation changes.
thanks
Passive equity tracker within a Child ISA thingy?thanks
Mattt said:
I've not set up a child's ISA as they get full control at 18 and you can't withdraw before then.
yea i saw that. Puts me off. Particularly as they have s
t rates right now, I don't want to be locked in to that investment for 18 years AND give them full control immediately at that point.Blown2CV said:
yea i saw that. Puts me off. Particularly as they have st rates right now, I don't want to be locked in to that investment for 18 years AND give them full control immediately at that point.
I wouldn't keep cash in the ISA, what's the point with the interest rates being so poor? Why not get a stocks and shares ISA for the bairn and drip feed the investment in across a few good quality funds. Vanguard look good for trackers, although you might want to hold off if you believe we're at the beginning of the end of the bull market as some commentators seem to be saying. t rates right now, I don't want to be locked in to that investment for 18 years AND give them full control immediately at that point.UV
Blown2CV said:
yea i saw that. Puts me off. Particularly as they have st rates right now, I don't want to be locked in to that investment for 18 years AND give them full control immediately at that point.
It makes no sense to be holding cash for an 18+ year investment, hence the suggestion you invest in a stocks & shares ISA. In this case current interest rates are somewhat irrelevant!t rates right now, I don't want to be locked in to that investment for 18 years AND give them full control immediately at that point.Mattt said:
I've not set up a child's ISA as they get full control at 18 and you can't withdraw before then.
You can withdraw to another ISA provider and I don't have a problem with them getting full access at 18 that's the idea. I started with Halifax at 4% on their cash ISA quickly realised that was rubbish so moved it over to HL S&S ISA invested in 2 low cost funds.
Craikeybaby said:
Another vote for a separate fund within your own S&S ISA.
This gets covered a lot, so maybe worth having a look for some older threads.
The downsides are however:This gets covered a lot, so maybe worth having a look for some older threads.
A) you're using your own allowances - poor tax planning.
B) you're not really teaching your kids anything about their own financial responsibility - a missed opportunity.
C) It forms part of your estate for IHT - see A
D) and crucially in my experience if you use the Childs ISA as intended, relatives (grandparents etc) will be more forthcoming in paying into a fund they know is definitely going to the child rather than YOUR ISA that may or may not go them ultimately...
Mine have JIsas, the older 2 had CTFs but they've been put into Jisas now.
I'm targeting them to hit £25k on the 18th birthdays - the kids don't get their hands on the money, the money automatically gets transferred into an adult ISA which of course they will control but it's not quite the same thing.
I'm hoping my kids at 18 will have the fore sight to not be bell ends with the money and I'll make it perfectly clear that's all they'll get out of me before I die, so if they want a university education, driving lessons, cars, weddings, house deposits etc... then they're going to have to priorities and be wise.
I'm targeting them to hit £25k on the 18th birthdays - the kids don't get their hands on the money, the money automatically gets transferred into an adult ISA which of course they will control but it's not quite the same thing.
I'm hoping my kids at 18 will have the fore sight to not be bell ends with the money and I'll make it perfectly clear that's all they'll get out of me before I die, so if they want a university education, driving lessons, cars, weddings, house deposits etc... then they're going to have to priorities and be wise.
FredClogs said:
Mine have JIsas, the older 2 had CTFs but they've been put into Jisas now.
I'm targeting them to hit £25k on the 18th birthdays - the kids don't get their hands on the money, the money automatically gets transferred into an adult ISA which of course they will control but it's not quite the same thing.
I'm hoping my kids at 18 will have the fore sight to not be bell ends with the money and I'll make it perfectly clear that's all they'll get out of me before I die, so if they want a university education, driving lessons, cars, weddings, house deposits etc... then they're going to have to priorities and be wise.
How old are your kids?I'm targeting them to hit £25k on the 18th birthdays - the kids don't get their hands on the money, the money automatically gets transferred into an adult ISA which of course they will control but it's not quite the same thing.
I'm hoping my kids at 18 will have the fore sight to not be bell ends with the money and I'll make it perfectly clear that's all they'll get out of me before I die, so if they want a university education, driving lessons, cars, weddings, house deposits etc... then they're going to have to priorities and be wise.
Chances are £25k is going to cover half of that list!
Rosscow said:
How old are your kids?
Chances are £25k is going to cover half of that list!
I doubt it will cover half... My hope is it'll get them through Uni or if it makes sense they borrow their way through uni and use it as a deposit on their first house or start a business, but who knows what the world will be like by then or what they'll turn out like. They're 5,6 and 9.Chances are £25k is going to cover half of that list!
DoubleSix said:
Craikeybaby said:
Another vote for a separate fund within your own S&S ISA.
This gets covered a lot, so maybe worth having a look for some older threads.
The downsides are however:This gets covered a lot, so maybe worth having a look for some older threads.
A) you're using your own allowances - poor tax planning.
B) you're not really teaching your kids anything about their own financial responsibility - a missed opportunity.
C) It forms part of your estate for IHT - see A
D) and crucially in my experience if you use the Childs ISA as intended, relatives (grandparents etc) will be more forthcoming in paying into a fund they know is definitely going to the child rather than YOUR ISA that may or may not go them ultimately...
Just opened an HL S&S JISA.
Gone for the Vanguard 80 plan - seems OK I guess....
Yes it transfers ot them when they're 18. That's the purpose of it. If they want to blow it all, then that's their call, i'm hoping i'll have brought them up to be reasonably sensible....
Alternatively they spunk it on coke & hookers. They'll at least enjoy it.
Gone for the Vanguard 80 plan - seems OK I guess....
Yes it transfers ot them when they're 18. That's the purpose of it. If they want to blow it all, then that's their call, i'm hoping i'll have brought them up to be reasonably sensible....
Alternatively they spunk it on coke & hookers. They'll at least enjoy it.
i really, really don't want to be saving all that time and all that money to have them fk it all away... but then i suppose that's what 18 years of parenting is for - to help them become the sort of person that wouldn't do that. Them having the money or not having the money won't change what type of parent you've been.
Anyway I'll have a look at the stocks and shares JISA. thanks
k it all away... but then i suppose that's what 18 years of parenting is for - to help them become the sort of person that wouldn't do that. Them having the money or not having the money won't change what type of parent you've been. Anyway I'll have a look at the stocks and shares JISA. thanks
Blown2CV said:
i really, really don't want to be saving all that time and all that money to have them fk it all away... but then i suppose that's what 18 years of parenting is for - to help them become the sort of person that wouldn't do that. Them having the money or not having the money won't change what type of parent you've been.
Anyway I'll have a look at the stocks and shares JISA. thanks
That was my concern - I know what I was like at 18!k it all away... but then i suppose that's what 18 years of parenting is for - to help them become the sort of person that wouldn't do that. Them having the money or not having the money won't change what type of parent you've been. Anyway I'll have a look at the stocks and shares JISA. thanks
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