Any ideas for long-term investment.

[glennjamin]

Good afternoon last Thursday my daughter had a beautiful little girl our first grandad child . I want to start an investment for her so that when she turns 18 or 21 she'll have a little bit of help. Any suggestions maybe lump sum investment or regular deposits. ? Thought about stocks and shares ISA ? Your thoughts please.....

[markiii]

appreciate she won;t be able to access it until a lot later but don;t forget you can open a pension and get tax back

[Jawls]

glennjamin said:

Good afternoon last Thursday my daughter had a beautiful little girl our first grandad child . I want to start an investment for her so that when she turns 18 or 21 she'll have a little bit of help. Any suggestions maybe lump sum investment or regular deposits. ? Thought about stocks and shares ISA ? Your thoughts please.....

For that timeframe, I’d stick it in a junior stocks and shares ISA invested in a globally diversified index fund, with the cheapest provider I could find. Note, this will pass to your granddaughter’s control once she’s 18, so if she then decides to waste it all, then that’s her decision.

Personally I’d avoid junior SIPPs - if I was a young person (hey, I was once!) and was trying to get on the housing ladder, it’d do my head in if I had what could possibly be a six figure sum that I couldn’t access til I was 58.

Lump sum vs regular deposits - statistically lump sum wins about 66% of the time.

[Caddyshack]

glennjamin said:

Good afternoon last Thursday my daughter had a beautiful little girl our first grandad child . I want to start an investment for her so that when she turns 18 or 21 she'll have a little bit of help. Any suggestions maybe lump sum investment or regular deposits. ? Thought about stocks and shares ISA ? Your thoughts please.....

Remember that she may go on to have 5 more grandchildren - don’t over commit to something that you cannot do for all the kids.

[OutInTheShed]

Caddyshack said:

Remember that she may go on to have 5 more grandchildren - don’t over commit to something that you cannot do for all the kids.

This!

And also, you may want to help them before they are 18.
I know lots of grandparents who are contributing to all sorts of stuff.
Education, medical bills, musical instruments, trips, sports....
There may we be things which you want to fund at any age.

[alscar]

Congrats to your daughter and of course yourself as new Grandparents.
We went through this earlier this year and decided it was easier to give my son some money to put for her now in her newly opened savings account with the suggestion that he should then open some form of Investment account ( through BMO was my suggestion ) as that was what we had done for all 3 of our children.
As GP it was clearly going to be more difficult to operate as trustees so better he did it.

[Mr Whippy]

JISA.