If you have young kids, do you put money away each month for
Discussion
Another option is if you have a SIPP and spare allowance you can pay into that to take advantage of the compound of the existing SIPP.
Then when you turn 55/57 you can use the 25% tax free draw down to gift to said child.
Only really works if you have kids a bit older though, if you are mid 20s the timing does not work but if you are 40 ish it will.
Then when you turn 55/57 you can use the 25% tax free draw down to gift to said child.
Only really works if you have kids a bit older though, if you are mid 20s the timing does not work but if you are 40 ish it will.
Badda said:
Emeye said:
My parents saved money for a university fund, which I then blew on my first car and insurance - I will not be giving my kids the opportunity to do this....
More fool them for allowing you too tbh. 
To be fair, it wasn't a massive amount of money, and it didn't go too well.... Details here: https://www.pistonheads.com/gassing/topic.asp?h=0&...drainbrain said:
Well to my way of thinking, the poor old single parent teacher had saved up for all those years so it wasn't really right that I should spend his savings.
Ah OK, so he paid it and enjoyed it himself. Thought you meant that it was allowed to lapse and 18 years of payments were lost!NickCQ said:
drainbrain said:
Well to my way of thinking, the poor old single parent teacher had saved up for all those years so it wasn't really right that I should spend his savings.
Ah OK, so he paid it and enjoyed it himself. Thought you meant that it was allowed to lapse and 18 years of payments were lost!red_slr said:
Another option is if you have a SIPP and spare allowance you can pay into that to take advantage of the compound of the existing SIPP.
Then when you turn 55/57 you can use the 25% tax free draw down to gift to said child.
Only really works if you have kids a bit older though, if you are mid 20s the timing does not work but if you are 40 ish it will.
That sounds like a good idea, I'm 47 & my youngster is 6 so that might work for us. I was thinking of a JISA, but would want some say over how the money was spent.Then when you turn 55/57 you can use the 25% tax free draw down to gift to said child.
Only really works if you have kids a bit older though, if you are mid 20s the timing does not work but if you are 40 ish it will.
Our child was born just before child benefit was means tested, so we set up that it was paid into a savings account. About a year later (& sod's law) the benefit was removed. So, I'm effectively saving the value of the benefit monthly into a savings account, but will increase this in a few weeks.
swerni said:
FredClogs said:
sbk1972 said:
Fredclogs, how did you move from the CTF to JISA ? Is it complicated to do ?
SBK
No, not at all, when you open an JISA its very easy to transfer in a CTF as long as you know your CTF provider and account number, the JISA provider will do the rest.SBK
When we had a child allowance that all went into premium bonds.
This way we can control the money and give it to them as and when appropriate.
They are completely unaware so expect nothing.
Finally found the time to look into this (S&S ISA) a bit more and one question I can't find a straightforward answer to.
Most sites say I can invest a lump sum (up to the £20k max) or a regular amount. I want to put a regular amount in (£100) but also ad-hoc lump sumsnow and then - can I do this and if so do all the platforms allow this or do I need to find one that specifically states this is possible?
Most sites say I can invest a lump sum (up to the £20k max) or a regular amount. I want to put a regular amount in (£100) but also ad-hoc lump sumsnow and then - can I do this and if so do all the platforms allow this or do I need to find one that specifically states this is possible?
wiggy001 said:
Finally found the time to look into this (S&S ISA) a bit more and one question I can't find a straightforward answer to.
Most sites say I can invest a lump sum (up to the £20k max) or a regular amount. I want to put a regular amount in (£100) but also ad-hoc lump sumsnow and then - can I do this and if so do all the platforms allow this or do I need to find one that specifically states this is possible?
It's a provider thing not an ISA thing so some do some don't.Most sites say I can invest a lump sum (up to the £20k max) or a regular amount. I want to put a regular amount in (£100) but also ad-hoc lump sumsnow and then - can I do this and if so do all the platforms allow this or do I need to find one that specifically states this is possible?
If you want to make a regular deposit check the provider charges as some will charge per purchase.
wiggy001 said:
Finally found the time to look into this (S&S ISA) a bit more and one question I can't find a straightforward answer to.
Most sites say I can invest a lump sum (up to the £20k max) or a regular amount. I want to put a regular amount in (£100) but also ad-hoc lump sumsnow and then - can I do this and if so do all the platforms allow this or do I need to find one that specifically states this is possible?
With regard to a S&S ISA with Hargreaves Lansdown, you can mix regular contributions and lump sums, provided you don't exceed your £20K annual ISA allowance overall. If you are putting in £100/month, then that's £1200/ year, so you could add up to £18800/year in lump sums.Most sites say I can invest a lump sum (up to the £20k max) or a regular amount. I want to put a regular amount in (£100) but also ad-hoc lump sumsnow and then - can I do this and if so do all the platforms allow this or do I need to find one that specifically states this is possible?
Have you also though about setting up pensions for your kids?
We max out our kids JISAs/CTF (some under old limits) and as cash was going nowhere we set up pensions for them so myself and wife could both max out our tax rebates / contribution not into our own work pensions but those for dependants to get "free" money back. OK, long term and high risk some would say, but at the amoutn we contribute into the kids pensions (the max p.a.) by 30 yrs old both kids will have pension posts equivalent to the prediction on mine or my wifes DC pension pots and we've both been working 25 years since graduating! (Forutnatley both of us have a decade or two in DB schemes as well as now turned into DB / Additional contributions) but it goes to show how the first penny works the hardest, longest and if it means in the early years of their careers my kids can back off pensions to build up house deposits to get on the ladder sooner so be it.
We max out our kids JISAs/CTF (some under old limits) and as cash was going nowhere we set up pensions for them so myself and wife could both max out our tax rebates / contribution not into our own work pensions but those for dependants to get "free" money back. OK, long term and high risk some would say, but at the amoutn we contribute into the kids pensions (the max p.a.) by 30 yrs old both kids will have pension posts equivalent to the prediction on mine or my wifes DC pension pots and we've both been working 25 years since graduating! (Forutnatley both of us have a decade or two in DB schemes as well as now turned into DB / Additional contributions) but it goes to show how the first penny works the hardest, longest and if it means in the early years of their careers my kids can back off pensions to build up house deposits to get on the ladder sooner so be it.
StanleyT said:
and if it means in the early years of their careers my kids can back off pensions to build up house deposits to get on the ladder sooner so be it.
This is what would make me wary about doing this. Age 25-30 having £100k saved up by your parents for you would seem pretty useless if you can’t access it for another 40 years. Much better to keep it unrestricted access, unless you are saving enough for them to do both of course. Ive been putting £30/month away into a bank account for my son since he was born, and he's now 11 yrs old, and he now has about £5k in savings. I plan to move this somewhere better soon, maybe an ISA?????
He's got a Child Trust Fund that was started with £250 for from the government, I pay £10/month into this for him.
Ive also just set up a pension for him, using £1k from his savings to kick start it off, and I will be putting money into it each month. I reckon by the time he's set to retire there might not be a state pension anymore, and it will at least give him the option of claiming it when he's 55 (or whatever age they increase this to).
He's probably richer in cash than I am.
He's got a Child Trust Fund that was started with £250 for from the government, I pay £10/month into this for him.
Ive also just set up a pension for him, using £1k from his savings to kick start it off, and I will be putting money into it each month. I reckon by the time he's set to retire there might not be a state pension anymore, and it will at least give him the option of claiming it when he's 55 (or whatever age they increase this to).
He's probably richer in cash than I am.
Edited by LeadFarmer on Sunday 21st January 21:46
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