Investment for my son

Portland

I am in a fortunate position and have £10000 to invest for my son. He is 10 yrs old now and I want him to have the money when he is 18. Can anyone tell me what are the best options for this length of investment? Should I spread the investment? Investing in wine / gold an option?

Many thanks on behalf of my son.

theGrinch

I cant suggest what to invest in, but a very simple general observation. whatever you invest in, make sure you understand its fundamentals.

Cautious_Investor_3

Hi

Like wise I cannot provide advice but I would say the following:

1. Think about how much risk you are prepared to take. If you do not want to see the value fluctuate the you are essentially limited to deposit accounts, which will introduce other risks such as the risk that the return will not keep pace with inflation which could reduce the real value of the money. However, given the eight year time scale you may be able to introduce a degree of risk in the hope that you will get better returns, it is for you to decide on the 'degree'

2. Consider tax. If you invest in a tax efficient way e.g. via an ISA you will effectively increase the return by an amount equal to the tax that you would have paid

3. Understand the investment, start with something simple which meets your attitude to risk. Many first time investors seem to make the mistake of over complicating things and over thinking the investment. As I say, go for something simple, tax efficient that meets your attitude to risk.

By all means take advice from an IFA if you are unsure what to do, www.unbiased.co.uk will help you track down an adviser close to you with the necessary qualifications and experience in the area that you need advice on.

I hope this helps.

The Cautious Investor