Best place for kids inheritance?

Cuzza_2

Hi

First post here so go easy on me!

My grandfather passed away last year and has left money to my children, approx £8000 to each of them, to be held in trust until they are 18. Daughter is currently 5, son is 3.

Executors of the estate have to decide where it goes but have asked me for my preference?

Obviously, it needs to be somewhere secure but would like to maximise the return they are likely to get from anything. Doesn't need to be easy access or such like as the earliest either of them is allowed to access the money is 13 years from now!

All advice gratefully received.

Thanks in advance

Cuzza

dunstonh

Obviously, it needs to be somewhere secure

Why? Risk is not an on or off situation. Its a sliding scale. Sticking it in a cash fund for 13-15 years is equally as risky as sticking it on the stockmarket for that time.

Risk and timescale need to be considered together. This is long term so some risk should be acceptable. How much risk then becomes the question.

Cuzza_2

dunstonh wrote:

Why? Risk is not an on or off situation. Its a sliding scale. Sticking it in a cash fund for 13-15 years is equally as risky as sticking it on the stockmarket for that time.

Risk and timescale need to be considered together. This is long term so some risk should be acceptable. How much risk then becomes the question.

Fair point, I suppose what I wanted to say was that whilst some risk is acceptable I don't want to put these funds into something that is ultra risky.

A reasonable level of risk is acceptable. Any hints?

Cuzza

MPH80

Cuzza wrote:

A reasonable level of risk is acceptable. Any hints?

Cuzza

Can I suggest you consider one of two things:

1) Finding a high interest rate savings account and putting it in there - which would be 0% (well - pretty much) ... or

2) Buy this book:

http://www.amazon.co.uk/exec/obidos/ASIN/0752265393/qid=1138528962/sr=8-1/ref=sr_8_xs_ap_i1_xgl/202-9989761-7999029

And then consider your options from there. The best option with all investments (which is your option if you are wanting a higher return than approx 5%) is to Do Your Own Research (DYOR).

(IMHO - that book will be the best investment you can make)

M.