Looking for a long term investment plan for my baby boy

inflationiscoming

do you use your stocks and shares ISA allowance?
When would you want him to have access to the money?

This will affect what you do..

xylophone

See post 6 above and http://www.direct.gov.uk/en/MoneyTaxAndBenefits/Taxes/Trusts/Typesoftrustandtaximplications/DG_191735

You might be best advised to regard your stocks and shares ISA as "earmarked" for your child - you can then hand over the money when you wish - you might need to have regard to IHT considerations at that time.

cooliegirl

inflationiscoming wrote: »

do you use your stocks and shares ISA allowance?
When would you want him to have access to the money?

This will affect what you do..

No I don't use my stocks and shares ISA allowance, how does this work?

Access - probably when he is in his 20's but want to decide as and when. I imagine that it will be used for something like a deposit on a home as university fees (if he chooses to go) will be covered under my regular savings plan.

jimjames

cooliegirl wrote: »

No I don't use my stocks and shares ISA allowance, how does this work?

Access - probably when he is in his 20's but want to decide as and when. I imagine that it will be used for something like a deposit on a home as university fees (if he chooses to go) will be covered under my regular savings plan.

As per post #2, is there a reason that isnt suitable as it seems to tick all the boxes?

Using your ISA allowance means that you just pay the money into that so you have full control over it until any point you want to pass the money on. You would have to choose the funds that you hold in the S&S ISA though. You may find some more useful info on ISAs here https://www.hl.co.uk that explains more about them.

inflationiscoming

cooliegirl wrote: »

No I don't use my stocks and shares ISA allowance, how does this work?

Access - probably when he is in his 20's but want to decide as and when. I imagine that it will be used for something like a deposit on a home as university fees (if he chooses to go) will be covered under my regular savings plan.

ISA is a tax-free wrapper for your savings and investments. Your annual allowance is £11,280 this year. You can save from £0 to £5640 in cash. Whatever you don't use of your ISA cash allowance, you can invest in a stocks and shares ISA. Stocks and shares ISAs can hold a range of different investments, from individual shares in companies to funds which hold different proportions of shares and bonds, from many different countries. Generally stocks and shares investment require a long time horizon. There is the potential for loosing money even in the long-term.

There are different risks and charges involved in different types of investment and you need to do research before you invest.

You may wish to also consider putting some of the savings into National Savings and Investments index-linked savings certificates when they next become available. These keep pace with inflation, and are tax free. You could hold them in your name, and they are not included in your ISA allowance.

I would suggest saving in a range of ways for your child. My family did this and I am grateful.

Have you thought about the total cost of university and whether the savings plan will be sufficient? 18 years is a long time horizon and the effect of inflation can erode the value of cash savings. If not you could start by working out approximately how much university costs now and how much you plan to save over time.