Junior ISA

cloud_dog

MallyGirl wrote: »

Linking DD's debit card to her Amazon account (for kindle) instead of charging everything to mine meant her taste switched quite quickly to 'free teen fiction' from whatever I had been paying out for!

Our DD is an avid reader although some books need to be physical whilst others can be electronic (I think she has some of my OCD). But, I've never linked our CC/debit card to her Google Play account. We have simply bought Google Play gift cards. My brother linked one of his cards to his kids accounts and oh my, what a mess. The perceived simplicity / removal of effort of buying and adding play cards has been far exceeded by the grief of the usual, unintentional, in game purchases etc.


EDIT: Sorry OP for going slightly off topic.

xylophone

His regular income is his child benefit being passed on to his bank account, but I don't think we can persuade HMRC to give it to him directly.

Do HMRC simply require a sort code and account number for the payment of CB?

Your child's JISA account will have these - would it be possible just to give the child's account number as the payee account to HMRC?

Zorillo

There's a specific reason why that wouldn't work but I'm not ready to reveal that yet.

Zorillo

We've gone with an initial £1000 deposit in a Vanguard Junior ISA invested in the Life Strategy 100 fund. I figure if you can't be adventurous when you're less than 1, you probably never will be.

This will be topped up with the gift from Grandad, and then left alone for approx 12 months before the next deposit, and this is the plan for the next ten years or so.

Once they're bigger we might to decide to keep more in cash to go towards e.g. cars and driving lessons (if they're still a thing in 2035) which will hopefully act as an incentive to keep the invested money for bigger things.

Thanks for all the advice.

P.S. 'My son' is actually twin sons and they have a ISA each

Alexland

Wow twins - get ready for mayhem when they start walking! My son did his first steps in his 1st birthday after a few stumbles the day before.

Zorillo wrote: »

Once they're bigger we might to decide to keep more in cash to go towards e.g. cars and driving lessons (if they're still a thing in 2035) which will hopefully act as an incentive to keep the invested money for bigger things.

Yes you definitely want to consider de-risking the portfolio in the 5-10 years leading up to withdrawal. It's worth considering a switch to a Vanguard Target Retirement fund which will gradually reduce stock market exposure and increase fixed income exposure as the target withdrawal date approaches. It even currency hedges the non-UK bonds (and people say Vanguard are passive...) to reduce foreign exchange volatility. There's a good review here:

https://pensioncraft.com/review-vanguard-target-retirement-funds/

Zorillo

They cause enough mayhem when they're stationary Alex .

£2.5k each from their grandad went into VLS100 today, and that money will buy them 8% more units per £ than the initial deposit did.