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I am lucky enough to be able to not rely on the child benefit we receive for Jr. At the moment this just being saved into a dormant joint current account.
Does anyone have advice on where it can go instead, like a formal ISA/savings account? I've looked into the formal child ISA but they revert into the child's name when 18 years old which is not something we want - we want to be able to choose how much and when to give them the money.
Is there some sort of account / trust fund which can be managed jointly between wife and I but that doesn't revert to the child at a set age?
Looking into this just now. Little Q appears to have amassed a good chunk of cash at 6 years old.
I would like to put it into a FTSE tracking fund for the next 12 years.
I've been thinking along similar lines. Little Ms Sundayjumper has money in a cash ISA earning a pittance. A FTSE tracker "feels" comfortable to me in terms of low fees and not being massively volatile.
Just open a stocks and shares ISA in your name, pay in to that?
I think unless the account is in your name they are free to blow it all on coke and hookers at 18.
I think unless the account is in your name they are free to blow it all on coke and hookers at 18.
If they don't know the account exists, they won't ask about it...
I think LLoyds junior saver pays about 3% until they're 16. Then it's a bit of a nether world where they're too old for a junior saver but too young for the good current a/c deals...
But long term, a junior S&S Isa should give the best returns.
Good point about them knowing about the account!
The Child ISA looks the way to go if I want security but a FTSE tracker would be interesting!
The Child ISA looks the way to go if I want security but a FTSE tracker would be interesting!
You can hold a FTSE tracker, or any other tracker, fund, trust or shares in a Junior S&S Isa. You can deposit £4080 per tax year. Hargreaves Lansdowne, Charles Stanley et al can provide them, but you (or more correctly, your child) cannot access it until they are 18.
There's nothing interesting about a FTSE tracker. If you want interesting, try [url= http://www.hl.co.uk/funds/fund-discounts,-prices--and--factsheets/search-results/j/jupiter-india-accumulation-inclusive/charts ]Jupiter India[/url] or [url= http://www.hl.co.uk/funds/fund-discounts,-prices--and--factsheets/search-results/l/legg-mason-if-japan-equity-x-accumulation/charts ]Legg Mason Japan[/url]
There's nothing interesting about a FTSE tracker. If you want interesting, try Jupiter India or Legg Mason Japan
+1. My daughter has both of these in her JISA. She'll be able to retire at 18...
You can hold a FTSE tracker, or any other tracker, fund, trust or shares in a Junior S&S Isa. You can deposit £4080 per tax year. Hargreaves Lansdowne, Charles Stanley et al can provide them, but you (or more correctly, your child) cannot access it until they are 18.
This, plus
I would like to put it into a FTSE tracking fund for the next 12 years.
Vanguard FTSE (and/or other index, but FTSE is relatively 'stable') tracker, incredibly low fees which has a huge impact over time, and if the FTSE isn't significantly higher in 12 years time then something has gone very wrong.
FWIW, over a long period, low-cost tracker funds generally outperform managed funds, and the difference is mainly the compound affect of the fee difference.
FWIW, over a long period, low-cost tracker funds generally outperform [i]poorly[/i] managed funds,
Fixed...
FWIW, over a long period, low-cost tracker funds generally outperform [s]poorly[/s] managed funds, [b]except the very few managed funds that maintain strong performance over a long period, but picking one that will is down to luck, as is the management of the fund[/b]Fixed...
Fixed
Just open a stocks and shares ISA in your name, pay in to that?
This is what I have done with mine, having had the same thoughts as you in terms of not wanting it to automatically transfer to them at age 18.
Why can't you just transfer it into a trust the day before they turn 18?
Just open a stocks and shares ISA in your name, pay in to that?
This is what I do.
For our 3 we took out pensions. We didn't want them to get a big lump sum at 18 which might be blown (enjoyed?) on coke and hookers.
Also, with the demise of final salary pensions there was a good chance that they wouldn't be thinking of retirement and would have other pressures on their incomes such as saving for a deposit on a house etc.
Not saying it's perfect, just a suggestion to consider.
Rich.
I was going to link to the info for the account we use, but I can't remember what it's called. Sh*t, I hope I can remember before she turns 18.