Best Saving for Child's Future

IanSt

NiallJC1984 wrote: »

At this point I'd just be happy to be able to save regularly (fixed amount per month) into a suitable account that will slowly grow over time. He's only 9 months but kicking myself I didn't start right away! Plenty time yet I suppose

If it were me and I was saving for a new born child for just under 18 years then I would start thinking about moving away from a 100% savings environment to at least 50% equities as soon as possible to gain advantage of the potential greater returns.

Equities are very high risk if they are only invested in for a few years, but the length of time that's involved here means that it really is a much lower risk especially as you would have the advantage of pound cost averaging that would allow you to buy more equities should they fall in price.

I would also keep the investments in my own name so that I can allocate the money fairly between them when it came to passing the money to them over a number of years, rather than each child getting what will hopefully be a large sum immediately on their 18th birthday.

aj9648

Alexland wrote: »

It really depends what life events you are saving for and your tollerence to risk? I am planning to help my 18 month old son with driving lessons from my income, university from his S&S JISA, house deposit and wedding help from my S&S LISA and maybe in a few years put some advance inheritance into an invested SIPP or stakeholder pension.

Hi

How does a LISA help in this situation? I thought LISAs could only be opened by 18y+. If the LISA is in your name then only you can buy a house ? Is that correct?

I’m asking as I’m interested in this too but thought it was not applicable for my kids.

Thanks

eskbanker

aj9648 wrote: »

Alexland wrote: »

It really depends what life events you are saving for and your tollerence to risk? I am planning to help my 18 month old son with driving lessons from my income, university from his S&S JISA, house deposit and wedding help from my S&S LISA and maybe in a few years put some advance inheritance into an invested SIPP or stakeholder pension.

Hi

How does a LISA help in this situation? I thought LISAs could only be opened by 18y+. If the LISA is in your name then only you can buy a house ? Is that correct?

I’m asking as I’m interested in this too but thought it was not applicable for my kids.

Thanks

LISA funds are also available for penalty-free withdrawal at 60 so Alexland is presumably planning to withdraw the money once reaching that milestone, when young son will be closer to house-purchasing age....

Alexland

Exactly my son will be 24 when I can withdraw all the contribution, bonus and growth from the LISA in 23 years time at 60 which is good for control but bad for inheritance tax.

Still if I die young there is probably already more than my wife lone needs in our pension pots and my employer pays out 7.5x base salary for death in service which would be enough to pay off our small mortgage and buy the house next door.

I've been wondering why the coffee tastes funny recently.