Investing for my 2 year old son.......

julietaow59

Hi There,

My two year old son received money for his baptism.... I am wondering if I could have some opinions on how to invest this money.

I invested my two elder Children's Baptism money into the Government initiated Trust funds. (we choose the Natwest Cash Account option) .

I am now thinking that this may not be the best route this time and am trying to get my head around what options I have...........................................

Look forward to responses.

xylophone

http://www.direct.gov.uk/en/MoneyTaxAndBenefits/ChildBenefitandChildTrustFund/ChildTrustFund/WhentheChildTrustFundisupandrunning/DG_193644
Are you still happy with the choice made for your elder children? Don't forget that the CTF can be moved to another provider.
Your 2 year old is eligible for a CTF so may not be eligible for the new JISA.
You could use the CTF but if the money is given by people other than parents, you might prefer another option.

https://forums.moneysavingexpert.com/discussion/comment/53396561#Comment_53396561 might be worth a look.

atush

I would invest in equities from small children, not cash. AS equities will outperform cash over long periods such as 16 years in your son's case.

I would invest in a Junior ISA, or an investment trust savings plan. And i would transfer the other children's CTFs into an equity fund as well.

xylophone

I would invest in a Junior ISA,

If the child is two years old he was born before 2 Jan 2011 so may not be eligible for the JISA.
http://www.halifax.co.uk/savings/accounts/branch-accounts/

"Children born between 1st September 2002 and 2nd January 2011 were eligible for the government Child Trust Fund and so cannot open a Junior Cash ISA, unless the child was born abroad between these dates and is now a resident in the UK".