Modest monthly investments for child

atush

I used investment trust savings plans for my kids. I used Witan and F&C although I have bought Aberdeen for myself as well.

Do look into trusts, some of which can be Jisas or you can hold them unwrapped.

Mine are using them to help fund university as we speak, I started when they were under 2.

chrisstevens

After some more thinking and weighing up the options I am looking at the following investments:

Vanguard LS 80% through Charles Stanley for the £50 ISA investment(Probably in my name rather than a JISA)

Aberdeen Children investment plan for the grandparents £30 a month

Do these sound like the best options based on our situation?

Thanks again
Chris

jimjames

chrisstevens wrote: »

After some more thinking and weighing up the options I am looking at the following investments:

Vanguard LS 80% through Charles Stanley for the £50 ISA investment(Probably in my name rather than a JISA)

Aberdeen Children investment plan for the grandparents £30 a month

Do these sound like the best options based on our situation?

Thanks again
Chris

Sound like good options. We use Aberdeen for our kids, also F&C but they are no longer as competitive for small monthly amounts.

xylophone

Remember that the fund in your name, for all that you regard it as "earmarked" for your daughter, will be taxed as yours and should you fall on hard times, will be counted as yours for the purposes of means testing.

Will the grandparents hold the IT in bare trust or as merely designated? Be sure that they understand the difference.

chrisstevens

xylophone wrote: »

Remember that the fund in your name, for all that you regard it as "earmarked" for your daughter, will be taxed as yours and should you fall on hard times, will be counted as yours for the purposes of means testing.

Will the grandparents hold the IT in bare trust or as merely designated? Be sure that they understand the difference.

As we will be investing via an ISA I am assuming the tax issue will be void? Good point about the means testing though. You would hope it never comes to that but worth thinking about.

The IT would be a bare trust which they seem happy with.

xylophone

As we will be investing via an ISA I am assuming the tax issue will be void?

No problems with the tax but the issue does indeed remain the same for means testing - I recall a poster from some time back who was most distressed to find that her ISA, which she regarded as her "pension" was indeed taken into account when she needed benefits.