Trying to sort out parent's finances - for retirement

Malthusian

Alexland wrote: »

My parents gift my young son £100 each birthday and christmas on condition that I save it in premium bonds. So to respect their wishes I end up running his online premium bond account knowing full well the money is being erroded by inflation and it's a complete waste of my time and their money when he already has accounts which pay higher returns.

Simple solution: invest £200 a year from your emergency fund in stocks and shares. When he is 18, if the stocks and shares account is worth more than the Premium Bonds, give him the surplus. If he's won the million pound prize, you can keep the stocks and shares for yourself.

As for the possibility that he wins £1 million and it turns him into a wastrel, I recommend hedging against this risk with something called "parenting".