Investments for U18's... JISA alternatives
Discussion
All... I think I know the options available, but not the best approach here:
Child showing an interest in investing some of his savings and his ideas (passive trackers and time in market based rather than expecting to strike it lucky on penny shares) are pretty sensible. Initially at least, the sums involved will be in the hundreds.
Separately he has a sum of money set aside in a savings account that he doesn't know about, this desperately needs to be better invested. Sums here are in the thousands (but sadly not tens of!).
A JISA seems the obvious option for one, but which? And what to do with the other?
Aside from pensions, there aren't any other tax breaks available are there, so just some sort of junior investment account and presumably suck up any CGT in due ourse?
Child showing an interest in investing some of his savings and his ideas (passive trackers and time in market based rather than expecting to strike it lucky on penny shares) are pretty sensible. Initially at least, the sums involved will be in the hundreds.
Separately he has a sum of money set aside in a savings account that he doesn't know about, this desperately needs to be better invested. Sums here are in the thousands (but sadly not tens of!).
A JISA seems the obvious option for one, but which? And what to do with the other?
Aside from pensions, there aren't any other tax breaks available are there, so just some sort of junior investment account and presumably suck up any CGT in due ourse?
You shouldn't be anywhere within a country mile of CGT unless there's quite big money involved. Plenty of tax wrappers available.
Why not split the cash 50/50 between JISA and SIPP? In SIPP the time-frame may be long but "free money" ought to appeal to Junior! The benefit of long term tax free compounding is huge.
Why not split the cash 50/50 between JISA and SIPP? In SIPP the time-frame may be long but "free money" ought to appeal to Junior! The benefit of long term tax free compounding is huge.
UpTheIron said:
All... I think I know the options available, but not the best approach here:
Child showing an interest in investing some of his savings and his ideas (passive trackers and time in market based rather than expecting to strike it lucky on penny shares) are pretty sensible. Initially at least, the sums involved will be in the hundreds.
Separately he has a sum of money set aside in a savings account that he doesn't know about, this desperately needs to be better invested. Sums here are in the thousands (but sadly not tens of!).
A JISA seems the obvious option for one, but which? And what to do with the other?
Aside from pensions, there aren't any other tax breaks available are there, so just some sort of junior investment account and presumably suck up any CGT in due ourse?
I would suggest Fidelity, as their JISA does not have a platform fee, and when dealing in OEICs/funds there is no additional transaction fee.Child showing an interest in investing some of his savings and his ideas (passive trackers and time in market based rather than expecting to strike it lucky on penny shares) are pretty sensible. Initially at least, the sums involved will be in the hundreds.
Separately he has a sum of money set aside in a savings account that he doesn't know about, this desperately needs to be better invested. Sums here are in the thousands (but sadly not tens of!).
A JISA seems the obvious option for one, but which? And what to do with the other?
Aside from pensions, there aren't any other tax breaks available are there, so just some sort of junior investment account and presumably suck up any CGT in due ourse?
I think it would be useful for your child to use funds to spend time investigating the types of funds, how to identify their exposure (assets, geographies, sectors, etc). You could teach them about a core and satellite approach to investing using funds, i.e. majority of monies in a general global fund, and then look at where they may wish to add an overweight position, i.e. technology, clean energy, etc, etc.
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