Makes sense on that basis then, nice thought too.
Roughly assume in 45 years £1500 on a 4% net =/-2% would be between £3.6k (approx doubling net of inflation) and £20.6k (lots more than inflation)
Not a Vanguard fanboy but I do like the simplicity of pricing and their target retirement and lifestrategy ranges. That said my most consistent performers have been a Pacific ex-Japan Stock Index Fund and an Emerging Markets Stock Index Fund.
I’ve one fund that has outperformed all others, which is a Fidelity Institutional Emerging Markets Fund, not sure if that is available in your wrapper?
Didn’t know this:
Anyone can put money into a Junior SIPP as long as it is within the £3,600 annual contribution limit, which includes tax relief. In short, you can put up to £2,880 a year into the Junior SIPP, and the Government will add tax relief at 20% to make this up to £3,600.
you’ll get a free £720 by investing the max in a junior SIPP. Not to be sniffed at but, l<span style=”font-size: 0.8rem;”>ike others, I’d be looking at a stocks and shares ISA rather than tying things up inside a pension wrapper. I wouldn’t be wanting to tie money up for 40 years +.</span>
That is why for my 5 year old I’ve put some into my ISA (again doesn’t restrict like a JISA) and some into my own pension (tax saving, may be able to release lump sum at 57 unless changes again).
Only one person I know gets ‘benefit’ from a J-SIPP, that’s primarily down to it offsetting earnings and tax – he was well into 6 figures so on top of 40% tax his tax free allowance was also reduced (effective 60% on that portion directly over £100k).