Best way to invest £20,000

atush

As per my previous post:

I would invest it into equities either by Oeics or investment trusts. Open a Bare Trust, where the acct is in yourname re:the child's name. It technically does belong to them at 18, but my son just turned 21 and it is still in my name.

You do this via an investment company either an OEIC or better yet an investment trust.

Investing monthly takes into acct something called pound cost averaging (google it).

This means if you are investing the same 100 per month, if prices fall from 20 per unit to 10 per unit, you get 10 instead of 5 units so twice as much for the same money.

When prices recover, (as they inevitably do) you have more units for the same amt of money invested.

xylophone

If you wish to invest monthly then you will need instant access accounts for both children - you would need to look for the best account (ie account with highest rate) available that will accept a 're' (see my previous post) for each child.
If you choose to invest in this way it would probably be easiest to set up monthly direct debits from your own account and repay yourself from the children's accounts.

Be sure that you keep meticulous records!
http://www.thisismoney.co.uk/money/saving/article-1604866/Investment-trusts-for-children.html this is rather old but you could check what is still available.

You could set up a bare trust via the Hargreaves Lansdown Vantage platform - perhaps something like the Invesco Perpetual Distribution Fund (Acc) might suit. This is an interest paying fund so you would need to reclaim the tax taken off once a year when you receive the statement. This you would pay into the children's instant access accounts when received.

As other people have suggested, you might consider half in fixed interest bonds and the rest into the stock market?

At all events, find those instant access accounts and get the money into them so that the children are earning some interest while you are thinking!

property.advert

All the planning in the world will be of no use if the money is given to them at an inappropriate age and they are not educated enough to spend it wisely.

A bit for university but the main for afterwards would be my aim.

Derivative

property.advert wrote: »

All the planning in the world will be of no use if the money is given to them at an inappropriate age and they are not educated enough to spend it wisely.

A bit for university but the main for afterwards would be my aim.

I would have to agree as a current student.
Quite frankly: during their studies, they won't need it.

£10k as a contribution to a house deposit, or rental deposit, or to purchase a car, etc, etc, will be far more valuable than some money to fritter away on little bits and bobs along the way.

You can't really "do much" with money during University besides invest it. And that requires the discipline to do so.

atush

I would have to agree as a current student.
Quite frankly: during their studies, they won't need it.

i don't agree with this, as the above poster won't be facing 9Kper year in fees plus increased housing costs. One of my boys starting in Oct has just received paperwork from Warwick saying living costs alone are over 10K there (he will be reading Law if he goes there).

10K, even with investment growth isn't going to go far with Uni costs like these.

baronsdale

i went to my local branch of santander today and they were no use at all all the advise i have had here has said that i should put in a bond of some sort or save monthly ,
they have sugested that i put the money in a 5 year bond with them at around 4.05 % . would getting a finace advisor help me if so will i have to pay ?

xylophone

Five years seems a long time to tie up at a fixed rate - you could be lucky of course - interest rates might not rise above their current abysmal level for years to come!
With regard to using an IFA, I think that though £20,000 is a generous gift, it would seem rather small beer to a financial adviser.