Investing for kids

Alexland

Yeah that should buy him a fab drum set. I think you might be right about the USA typo. The OP was looking to use adult ISA to retain control. I am doing 2 years £8k+ into a JISA and the rest in our names.

Keep_pedalling

Alexland wrote: »

Yeah that should buy him a fab drum set. I think you might be right about the USA typo. The OP was looking to use adult ISA to retain control. I am doing 2 years £8k+ into a JISA and the rest in our names.

Seems like a good split, I think it's good for young adults to have at least some responsability for their own funds. As for the drum kit, don't think my son would mind to much being a fan of thrash metal :cool2:

Alexland

The danger is I will make my son so concerned about the performance of his JISA he won't ever want to spend the money on getting ahead in life.

Sam_J

I have two children aged 0 and 2, and I have thought about similar issues. I have set up a regular payment of £50/month into a Junior stocks and shares ISA for each of them, as well as paying any substantially sized (£50+) gifts from relatives into this as well. These are both invested in a low cost global equity market tracker fund. My intention is that once these accounts reach levels where my children are likely receive around £10k once they turn 18, I will switch the regular payments into a SIPP instead. I intend to further assist them in later life by funding university and housing deposits from my own pocket.

Keep_pedalling

Sam_J wrote: »

I have two children aged 0 and 2, and I have thought about similar issues. I have set up a regular payment of £50/month into a Junior stocks and shares ISA for each of them, as well as paying any substantially sized (£50+) gifts from relatives into this as well. These are both invested in a low cost global equity market tracker fund. My intention is that once these accounts reach levels where my children are likely receive around £10k once they turn 18, I will switch the regular payments into a SIPP instead. I intend to further assist them in later life by funding university and housing deposits from my own pocket.

You won't be able to switch them to a SIPP, only transfer to another JISA, they could do this themselves at 18, but other priorities will probable persuade them otherwise.

cloud_dog

Keep_pedalling wrote: »

You won't be able to switch them to a SIPP, only transfer to another JISA, they could do this themselves at 18, but other priorities will probable persuade them otherwise.

Sam_J said they would switch the regular payment/investment in to a SIPP (account) not the JISA accounts/capital itself.

Keep_pedalling

cloud_dog wrote: »

Sam_J said they would switch the regular payment/investment in to a SIPP (account) not the JISA accounts/capital itself.

Apologies, senior moment.

aj9648

Keep_pedalling wrote: »

Is USA a typo for ISA? You can't put that size of lump sum into JISA, £4128 is the current max, so you would need wait for April the 6th to top up.

I have just got my son to open a Vanguard JISA for our 4 week old grandson and we have gifted the full allowance which has been put into LS100.

Yes should say ISA. I would have it in my name and not in his