Viewing 19 posts - 1 through 19 (of 19 total)
  • Investments for kid(s)?
  • steveoath
    Free Member

    after seeing my father in law having to shelf early retirement plans due to his son’s plans to study abroad (£10k required for fees/living) we’re looking at setting up a long term investment for babyOath. What’s the best way to go? Junior ISA? Cash or Stocks/shares? Or anything else? Any advice greatly recieved.

    anagallis_arvensis
    Full Member

    I saveca ver modest sum a month into a stocks and shares isa. Its in my name, longvterm it should do better than any savings account and I can put it somewhere safer nearer the time. Grand parents have put some money into a junior isa type thing which is in his name. Mine should out perform his.
    lets hope he’s too thick for uni and I can spend it on cokecand hookers!!

    properbikeco
    Free Member

    for the long term it has to be in stocks and shares, best put into some form of isa to shield from tax.

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    squirrelking
    Free Member

    ISA hasn’t been covering the cost of inflation for some time now, my advice would be to find a decent savings account and then save as normal with regular payments. If it’s in childs name then you can get the required form so no taxes are paid, if in yours then you’ll need to do some sums to see if it’s worthwhile.

    kcal
    Full Member

    How do yeoman “ISA hasn’t covered cost of inflation” – if its a stocks & shares ISA, it depends on where you invest (and charges), no?

    FWIW we have a pair of smallish funds set up for children, for university or beyond, nothing fancy in terms of investments, broad spread of investment trusts usually, some longer term / risky, and some in shorter safe areas.

    teamhurtmore
    Free Member

    Use ISA shell and invest for longer term as they do not need immediate returns. You can always put into ISA cash just in case Greece does default and then buy equities into the dip?

    squirrelking
    Free Member

    How do yeoman “ISA hasn’t covered cost of inflation”

    As in – inflation has ridden as high as 3.5%pa in recent years whilst an ISA was unlikely to give more than 2.5% interest. That’s what I mean.

    I’ve already done a lot of the legwork on this and a regular savings account IS the best option for now. Forget about tax free, the interest generated isn’t going to be anywhere close to the (what is it now, £5.5k pa?) threshold for paying tax, just go for the best available deal (and look at allowed contributions from parents and relatives if it does start getting close, lol).

    wanmankylung
    Free Member

    Can I just be the first to state that the father inlaw is a mug. If the kid cant afford to study abroad then he should go somewhere he can afford.

    Pawsy_Bear
    Free Member

    10k isnt enough for early retirement or ten times that so not sure thats a valid point and agree with above I have 3 kids they all paid there way though Uni, its called living within your means

    squirrelking
    Free Member

    Can I just be the first to state that the father inlaw is a mug. If the kid cant afford to study abroad then he should go somewhere he can afford.

    Depends really, how much would he be paying at home? Is it 10k per year or for the entire course? It’s not entirely unlikely that it would be considerably cheaper to study elsewhere in the EU than in the UK (unless you have your fees paid for you). Would you not go out your way to do the best for your child? £10k is a fair amount granted but not an earth shattering amount, I could probably pay that off in a couple of years easily and it sounds like a better investment than a car for example.

    As for 10k being enough to retire on, it might not be but paying off a loan to cover that might be enough to keep you in work.

    MoreCashThanDash
    Full Member

    I heard somewhere that you can set up a private pension for someone at any age. Depends when you want them to get hold of the money, but would be an interesting nest egg to have.

    wanmankylung
    Free Member

    Would you not go out your way to do the best for your child?

    Yip – always. But going out of your way to help your child doesn’t always involve giving them everything on a plate.

    teamhurtmore
    Free Member

    Good for your FIL, one if the best investments you can make.

    dudeofdoom
    Full Member

    Yip – always. But going out of your way to help your child doesn’t always involve giving them everything on a plate.

    Just heard an old friend is back with parents with a bit of a drug issue….he was pretty much bailed out by them his whole life…and had everything on a plate from day one….wheras all my other friends who had nothing turned out more sucessfully as people and just plain nicer.

    tenacious_doug
    Free Member

    Our savings for the wee one are in a stocks and shares isa, in my name. FTSE tracker, returns have been good to date.
    I wasn’t keen on junior ISAs as it automatically gives them full control at 18, while I’d like to think I’ll bring up a level headed boy that wouldn’t waste his savings as soon as the bank gives them to him, I’d rather be in a position to decide that for myself rather than it happening automatically. Also means we can take the money out earlier or later as required.

    anagallis_arvensis
    Full Member

    Can I just be the first to state that the father inlaw is a mug. If the kid cant afford to study abroad then he should go somewhere he can afford.

    Yeah **** kids, just sire them and then tell them to **** off….

    andyl
    Free Member

    Buy them a future classic car. Choosing what to go for is had though.

    br
    Free Member

    after seeing my father in law having to shelf early retirement plans due to his son’s plans to study abroad (£10k required for fees/living) we’re looking at setting up a long term investment for babyOath. What’s the best way to go? Junior ISA? Cash or Stocks/shares? Or anything else? Any advice greatly recieved. i]

    tbh If £10k has scuppered his retirement plans, it ain’t much of a plan…

    Best investment plan is to ensure you don’t have any debt so you are able to help out your kids when they need it. So concentrate on paying off stuff and/or not buying stuff you don’t need.

    For example, my son lost his job at Christmas (company made chemicals for the oil industry) and we’ve paid his rent for him while he as out-of-work (now back working). I know he’ll pay it back, but it stops him getting into debt with someone else.

    squirrelking
    Free Member

    Who says anything is being given “on a plate” besides yourself? Anyway, this is nothing to do with the question, I’ve said my piece so nothing more to add.

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