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Wow!!
You guys are GOOD!! :beer: :j
Ok...... The money is to be used for whatever she wants but NOT p***ing it up against the wall type usage. Not partying, clothes etc.
I am happy to split it.
I was somewhat confused by some of your posts and in addition what does a bare trust mean?
I am truly grateful for all your help. Its lush to have somewhere like this to go and get help.
Btw my daddy will leave it to me to decide what to do.
:cool:0 -
I agree it would be sensible to split the total pot. You want to make sure it doesn't all get lost on a risky investment before she wants to spend it; but if you're looking several years down the line, putting it all somewhere with no risk, no reward is a wasted opportunity.
1) Put the maximum amount in a cash isa for her this year (3,600?) which can be fixed rates for a couple of years to get a better rate, and then swap to the best available for another couple of years after that. You probably won't find that today's top payer is still the top payer in 2014.
Then when she's 18 the cash piece will be guaranteed not to have lost any value (although it might buy less, because of inflation, but not drastically so) and she can get that then.
2) You then have 2400 to invest in shares, but it is perhaps risky to dump it all in the stockmarket today when the market could be higher or lower in a month or two. Split it into 4 chunks and invest one in an equities investment fund today, one in 6 months time, one 6 months later, one 6 months later. In the meantime put the excess in cash. The last one will be invested when she's 15 and so will have 6 years to go before she's 21 (while the first piece got invested with 8 years growth).
While shares can be volatile (thus the idea to only commit half to shares, and not all at once) the key is to actually invest for her to have something that has gone up in real value in the future. If you are just going to save for her, with no risk, no reward, what is the point of him giving it to be invested for her now? Might as well have just kept it in cash now and give her the equivalent with inflation in five year's time.0 -
Thank you.
Now comes the bit which proves beyond all doubt that I am blonde
How do I do the investing bit? Can I do it alone without paying someone? if so what do I do? Please
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http://www.hmrc.gov.uk/tdsi/children.htmI was somewhat confused by some of your posts and in addition what does a bare trust mean?0 -
Many thanks
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Deleted_User wrote: »How do I do the investing bit? Can I do it alone without paying someone?
Given the sum available to invest, paying someone isn't really an option.
When I bought some shares for our daughter, I opened a share account in my name with her initials as a designation. I then wrote a short letter setting out the terms of the bare trust and send a copy of this to HMRC (who didn't respond.)
When she hit 18, I moved the shares across to her account using the online facility of the provider. Child ISAs take a lot of the hassle out of this!
As for what to invest in, I wouldn't go for anything racy if she's currently 14 and wants the money at 18ish. (I did, but that's a different story!)I am not a financial adviser and neither do I play one on television. I might occasionally give bad advice but at least it's free.
Like all religions, the Faith of the Invisible Pink Unicorns is based upon both logic and faith. We have faith that they are pink; we logically know that they are invisible because we can't see them.0 -
Phew!!
How come you guys are all so confident with this sort of stuff? it scares me! 0 -
Deleted_User wrote: »How come you guys are all so confident with this sort of stuff? it scares me!
Never confuse confidence with being right!
However, let's just say that no-one is born knowing this stuff, and it's not really down to smarts, but more a case of reading and researching.I am not a financial adviser and neither do I play one on television. I might occasionally give bad advice but at least it's free.
Like all religions, the Faith of the Invisible Pink Unicorns is based upon both logic and faith. We have faith that they are pink; we logically know that they are invisible because we can't see them.0 -
Possibly....... trial and errorgadgetmind wrote: »Never confuse confidence with being right!
However, let's just say that no-one is born knowing this stuff, and it's not really down to smarts, but more a case of reading and researching.
Personal Responsibility - Sad but True
Sometimes.... I am like a dog with a bone0 -
Possibly....... trial and error
Humans are actually very bad at proceeding using trial and error as there are numerous behavioural biases that can catch us out.
http://www.psyfitec.com/p/list-of-behavioral-biases.htmlI am not a financial adviser and neither do I play one on television. I might occasionally give bad advice but at least it's free.
Like all religions, the Faith of the Invisible Pink Unicorns is based upon both logic and faith. We have faith that they are pink; we logically know that they are invisible because we can't see them.0
![[Deleted User]](https://us-noi.v-cdn.net/6031891/uploads/defaultavatar/nFA7H6UNOO0N5.jpg)
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