If you have young kids, do you put money away each month for

[456mgt]

Slightly different take on this, but I set up pensions for my two kids when they were 6 and 9 years old. In both cases I put in lump sums, the idea being to benefit from slow growth over what I hope is a long time. I don't know if this is a good idea or not, but it's a start I guess.

[sidicks]

alorotom said:

We use accounts with the Bank of India, was a pain to setup as was all paper based and not online so involved postage back/forth but once setup it’s been great

Much better rates than U.K. banks and ISAs as well

In what currency?

[HannsG]

Invest in property or other means.

Putting money away does nothing nowadays.

[Badda]

HannsG said:

Invest in property or other means.

Putting money away does nothing nowadays.

What does 'other means' mean?

[sidicks]

HannsG said:

Invest in property or other means.

Putting money away does nothing nowadays.

Makes no sense. Do you mean cash savings rates are currently very low?

What property can you purchase for the typical £25-£50 per month that people are talking about?

Plenty of equity markets were up 25% or more over the last year - what happened to the property market over the same period?

Edited by sidicks on Thursday 4th January 11:08

[sbk1972]

How did you set up pensions ? That sounds a good idea. Is the rate better ? What are the advantages ?

In regards to property, as much as I would love to buy 2 houses and rent them out on their behalf I haven't the cash :-)

Something is better than nothing in the end.

SBK

[Badda]

sbk1972 said:

How did you set up pensions ? That sounds a good idea. Is the rate better ? What are the advantages ?

In regards to property, as much as I would love to buy 2 houses and rent them out on their behalf I haven't the cash :-)

Something is better than nothing in the end.

SBK

You're absolutely right, Hanns is just waving an appendage around incorrectly.
The 'rate' is no better in a pension as it's just a wrapper rather than a product but you do get 20% tax gains.

The choice is whether you think your children will benefit more by having funds available as they start their working life or when they finish it?

[sidicks]

Badda said:

You're absolutely right, Hanns is just waving an appendage around incorrectly.
The 'rate' is no better in a pension as it's just a wrapper rather than a product but you do get 20% tax gains.

The choice is whether you think your children will benefit more by having funds available as they start their working life or when they finish it?

Yes, to some extent. But some might argue that having already built up a pension fund by the time they reach their 20s, they will have more flexibility / disposable income at that time as they don’t have to worry about paying into a pension if they have other competing calls on their money I.e. the benefit of investing in a pension isn’t just at their retirement.

But in broad terms I agree with your point.

[Patch1875]

We have put £100 a month into CTF for our daughter since birth she’s got more money than me.

[Teebs]

We put £80/month into a S&S ISA, topped up with any cash they receive at Christmas and Birthdays.

Should be a tidy amount once they reach 18.

[Too Late]

HannsG said:

Invest in property or other means.

Putting money away does nothing nowadays.

My £100 (soon to be £200) a month wont go far on a property....

[sidicks]

Too Late said:

My £100 (soon to be £200) a month wont go far on a property....

Ignore HannsG, he doesn’t appear to have a clue what he is talking about!

[HannsG]

sidicks said:

Ignore HannsG, he doesn’t appear to have a clue what he is talking about!

Of course I don't....

[sidicks]

HannsG said:

Of course I don't....

I can only go by the content of your post...

Why don’t you try and explain what you actually mean, in a way that might actually add some value to the OP, rather than the vague / nonsensical statements in your original post?

Edited by sidicks on Thursday 4th January 12:38

[wiggy001]

Currently £50 per month for each of my 2 girls just going into savings accounts., but I feel I should be putting it somewhere where it will return more. I want the money to be under my control when they turn 18, the idea being that it will go towards their first property when the time comes. If they stay living at home but working then their "rent" will also be added to this pot (to get them used to paying rent, but return the money to them at a later date).

Can someone give an idiots guide to setting up a S&S ISA that will achieve what I need, or offer an alternative solution?

[BoRED S2upid]

Depends where your putting it a S&S isa paying say 15% a year £100 amonth will soon balloon into a tidy sum in a bank account it’s pointless you may as well stick it under the bed.

[sidicks]

wiggy001 said:

Currently £50 per month for each of my 2 girls just going into savings accounts., but I feel I should be putting it somewhere where it will return more. I want the money to be under my control when they turn 18, the idea being that it will go towards their first property when the time comes. If they stay living at home but working then their "rent" will also be added to this pot (to get them used to paying rent, but return the money to them at a later date).

Can someone give an idiots guide to setting up a S&S ISA that will achieve what I need, or offer an alternative solution?

My (limited) understanding is that a Junior ISA becomes their property when they reach 18, which makes it inappropriate for your requirements.

I agree that with interest rates so low and with a decent investment horizon, you would be better off taking more investment risk.

Assuming you’re not fully utilising your own ISA allowance then I’d suggest an allocation to a global equity tracker fund within your own ISA. See the related thread on this sub-forum.

[Butter Face]

wiggy001 said:

Currently £50 per month for each of my 2 girls just going into savings accounts., but I feel I should be putting it somewhere where it will return more. I want the money to be under my control when they turn 18, the idea being that it will go towards their first property when the time comes. If they stay living at home but working then their "rent" will also be added to this pot (to get them used to paying rent, but return the money to them at a later date).

Can someone give an idiots guide to setting up a S&S ISA that will achieve what I need, or offer an alternative solution?

I’m 99% sure that if you want control you need to save in your name.

[sbk1972]

Well, Barclays ( my own bank ) doesn't have Junior ISAs.

I have a SIP with Lansdown Hargreaves so will open up a J ISA with them for my daughter. This tracks against the market.

My son has CFT which I will need to transfer over to a JISA. Not sure if I set up a JISA in L/Hargreaves in his name and transfer over ?

Like everything on google, you try to search and the amount of biased information is incredible. Do a search for the top JISA and many are affiliated.

Anyway, I think I will go down the Lansdown Hargreaves route.

SBK

[sidicks]

sbk1972 said:

Well, Barclays ( my own bank ) doesn't have Junior ISAs.

I have a SIP with Lansdown Hargreaves so will open up a J ISA with them for my daughter. This tracks against the market.

My son has CFT which I will need to transfer over to a JISA. Not sure if I set up a JISA in L/Hargreaves in his name and transfer over ?

Like everything on google, you try to search and the amount of biased information is incredible. Do a search for the top JISA and many are affiliated.

Anyway, I think I will go down the Lansdown Hargreaves route.

SBK

What do you mean by the ‘top JISA’?

The JISA is just a wrapper for the investment portfolio. If you are already familiar with HL, that would be a natural choice for this.