16 year old son has £15000 to invest..

masonic

jinkssick wrote: »

this is by far the best bet. its even :money: choice.

A non-taxpayer can still beat the RPI by quite a margin with an instant access savings account. The RPI is currently, what 4.5% or so (translating to a return of 5.8%)? There are simple savings accounts paying 6%. If you look a little harder you can find accounts paying considerably more than that.

roger_c

masonic wrote: »

A non-taxpayer can still beat the RPI by quite a margin with an instant access savings account. The RPI is currently, what 4.5% or so (translating to a return of 5.8%)? There are simple savings accounts paying 6%.

Yeah the RPI is at 4.5%.

From the NS&I website:

"Index-linked Savings Certificates
Tax-free returns of up to 5.85% variable
(equivalent to 9.75% gross for higher rate taxpayers)


With our inflation-beating Index-linked Savings Certificates, the value of your investment increases in line with inflation and earns guaranteed interest rates – with all your returns tax-free. So you can be sure to keep ahead of rising prices."

And they are TAX FREE unlike instant access savings accounts. However, as this young man is probably a non-taxpayer anyway you may be better with the instant access savings accounts (e.g. Sainsbury's 6% one I saw on this board somewhere).

Well that's my tuppence anyway! lol

masonic

roger_c wrote: »

Yeah the RPI is at 5.5%.

:eek: A typo, surely?!

TTMCMschine

I think that the best investment that you could make for him would be to spend about £150 on a pile of books like "the intelligent investor" by Benjamin Graham, "the essays of Warren Buffet," "rich dad poor dad" (a bit basic but it does make you think about what to do with your money), Martins book, Alvin Halls book, & a pile of others & to stick the rest in the best interest bearing accounts you can find.

Hopefully then a) he learns the value of money, b) understands how to invest if he decides he wants to, & c) he hopefully learns to retain his money & avoid debt.

I think that the knowledge he would get & the head start in understanding how to manage his finances from that initial £150 or so spent would be worth significantly more than any fiscal returns you can get him where ever you put the money.

He could then avoid ending up on a forum like the DFW like so many people seem to these days.