Best way to save over 20+ years?

Eco_Miser

jdw2000 wrote: »

JISA. Tax free.

As good as that may be, it does not meet the OP's requirement for "20+ years", since it will come under the child's control in less than 17 years. Of course the child may decide to continue the investment as the OP wishes.

Peon

Eco_Miser wrote: »

As good as that may be, it does not meet the OP's requirement for "20+ years", since it will come under the child's control in less than 17 years. Of course the child may decide to continue the investment as the OP wishes.

This seems like a good length of time to me, the 20+ years was just a rough figure to be honest.

Eco_Miser

Fair enough so long as you're aware of what happens on your child's 18th birthday.
Some posters on here are horrified at the thought of a teenager taking control of the money that's been saved for them, and with you specifying 20+ years, I thought you may be one of them.

kidmugsy

Eco_Miser wrote: »

Fair enough so long as you're aware of what happens on your child's 18th birthday.
Some posters on here are horrified at the thought of a teenager taking control of the money that's been saved for them, and with you specifying 20+ years, I thought you may be one of them.

Pah! I was a saver as a boy so I bought a motorbike at 18. Wonderful fun and a way to get to jobs that I couldn't have reached by public transport. To use the technical term it increased my "personal capital" i.e. my earning potential.

cashbackproblems

ColdIron wrote: »

Their %age is higher than most but it depends on the sums involved

£50 pcm would be £600 in year one, that's less than £2.70 in fees. Would you call that a lot?

Edit: bowlhead99's assumptions and maths are more accurate than mine. I apologise for grossly overstating the costs involved

£27 per year you mean


I am aware there are cheaper platforms but whenever I look at comparison tables theres always some extra fee with another broker e.g. buying/selling or minimum monthly fee which doesn't make HL too bad. Plus you get one of the easiest to use and research sites possibly out there.


I currently have 30k so should be paying 1.3k per year...but when I look at my statement there only take out c£10 pm for their fees which Is odd.

vacheron

Eco_Miser wrote: »

Fair enough so long as you're aware of what happens on your child's 18th birthday.
Some posters on here are horrified at the thought of a teenager taking control of the money that's been saved for them, and with you specifying 20+ years, I thought you may be one of them.

That would be me!

I am looking for the exact same criteria but under my control!!!

xylophone

I am looking for the exact same criteria but under my control!!!

And there is no problem with this - you can use your own ISA for tax efficiency and then make gifts as and when you wish.

Or if you have other plans for your ISA, you could consider a "designated"(not bare trust) savings scheme - the money remains yours, remains part of your estate and is taxed as yours.

If you went down either of the above routes, you would need to make a specific bequest in your will if you wished the money to go to the child if you died before making any gifts.

Butif you should need means tested benefits, the money in both the ISA and the designated account would be taken into account because they remain your assets.

And there could be IHT considerations.....

Should relatives make specific gifts to the child, they would belong to the child absolutely whether inside or outside a JISA - the child would have the right to control a JISA at 16 and access it at 18.

Outside an ISA, if held in bare trust, the child would have the right to access at 18 (16 in Scotland).

ColdIron

cashbackproblems wrote: »

£27 per year you mean
.

No, I meant £2.70 per year

£600 * 0.45% = £2.70

I currently have 30k so should be paying 1.3k per year...but when I look at my statement there only take out c£10 pm for their fees which Is odd

That's because you have made the same mistake you made above
£30,000 * 0.45% = £135 which is roughly what you are being charged

theres always some extra fee with another broker e.g. buying/selling or minimum monthly fee which doesn't make HL too bad

You think HL aren't too bad when you think they are charging 4.5%? Blimey