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  • FIRST POST
    • Kate489130
    • By Kate489130 12th Jul 17, 7:27 AM
    • 1Posts
    • 1Thanks
    Kate489130
    How to invest£100 per month for 15 years
    • #1
    • 12th Jul 17, 7:27 AM
    How to invest£100 per month for 15 years 12th Jul 17 at 7:27 AM
    Hi

    I'm putting aside £100 a month for my two young children which I'm planning on giving them somehow when they turn 18 (if I trust them to spend it wisely!). I've saved around £6000 already but I'm thinking that it would probably be best to actually invest (I do all the current account/savings account good rates for our own savings) as I don't mind the money being relatively inaccessible. I wouldn't mind taking some risk but would be very upset if I got back less than I put in. So some questions:

    Should I invest the lump sum and the ongoing payments or just the ongoing payments? The current interest rate on the lump sum is very small.

    Does anyone have any recommendations about where to invest? I'm a complete newbie to this so don't even know where to look! Somewhere with a good reputation and quite a large company would be my preference.

    Thanks in advance!

    Kate
Page 1
    • Shashy
    • By Shashy 12th Jul 17, 9:38 AM
    • 50 Posts
    • 44 Thanks
    Shashy
    • #2
    • 12th Jul 17, 9:38 AM
    • #2
    • 12th Jul 17, 9:38 AM
    First question is do you, or do you not, wish for your children to have access to the money when they turn 18?

    My personal preference is that my children do not have automatic access when they turn 18 (I know what I'd have done with £10k when I was 18) and so I keep their savings/investments in an ISA in my name. That way I can choose when the money is given to them, or just use it to support them with house deposits/uni etc.

    If you do wish for the money to automatically transfer on their 18th birthday then a JISA is probably the best option.

    If it's 15 years until they turn 18 then the usual advice is that investment in stocks and shares is more likely to outperform cash and inflation over that time period.
    Last edited by Shashy; 12-07-2017 at 9:48 AM.
    • PeacefulWaters
    • By PeacefulWaters 12th Jul 17, 9:44 AM
    • 7,002 Posts
    • 8,610 Thanks
    PeacefulWaters
    • #3
    • 12th Jul 17, 9:44 AM
    • #3
    • 12th Jul 17, 9:44 AM
    Junior cash ISA of the stocks and shares variety.
    • AnotherJoe
    • By AnotherJoe 12th Jul 17, 9:55 AM
    • 7,397 Posts
    • 7,936 Thanks
    AnotherJoe
    • #4
    • 12th Jul 17, 9:55 AM
    • #4
    • 12th Jul 17, 9:55 AM
    What Shashy said about keeping it in your name. Gives you a lot more flexibility.
    Then invest in a global tracker fund* like HMWO, VLS100 or any of probably 100 other similar global lower cost trackers. For £100 each, perhaps split 50/50 over two funds, for £50 each just put it all in the same one. Keep it teh same for both kids for obvious reasons
    Or you might get (arguably) sightly more adventurous and put it in an Investment Trust with a solid track record. Scottish Mortgage spring to mind or Foreign & Colonial perhaps.

    I wouldn't keep the £6k in savings but i might dribble it in over two or three years, so up the monthly payments accordingly to start with.

    * Might be a Fund, an ETF, a Investment Trust.
    • cloud_dog
    • By cloud_dog 12th Jul 17, 11:07 AM
    • 3,179 Posts
    • 1,710 Thanks
    cloud_dog
    • #5
    • 12th Jul 17, 11:07 AM
    • #5
    • 12th Jul 17, 11:07 AM
    As always, life is never black and white / on or off; do everything suggested.

    For info....Our DD has a S&S CTF (forerunner to JISA) which we and grandparents contributed towards initially. The S&S CTF has done rather well and so we have never added to this pot (it is in my view sizeable enough with a number of years still to go).

    If your two don't have JISAs you could put some of the money in there for them; depending on age I would suggest a S&S version, and AnotherJoe has offered some sensible suggestions on investment option.

    Our DD also has a savings account, in her name, which we have added to over the years (not huge amounts).

    The majority of the remaining money for her is in a S&S account in the OH name (non-tax payer) so I only have to concern myself with CGT at some point.
    Personal Responsibility - Sad but True

    Sometimes.... I am like a dog with a bone
    • atush
    • By atush 12th Jul 17, 12:44 PM
    • 16,302 Posts
    • 9,969 Thanks
    atush
    • #6
    • 12th Jul 17, 12:44 PM
    • #6
    • 12th Jul 17, 12:44 PM
    I did this very thing for my kids, and used an investment trust savings plan (used Witan and F&C).

    These can be held as JISAs, or as isas in your name (to delay the age at which they get them)
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