SIPP for one year old daughter?

buel10

Hi all,

My daughter is one year old and I am thinking of starting a SIPP for her. However, I am guessing that the possible issue with this is is that I am inexperienced in investing so could well jeopardise the investment? Any thoughts, please?

I was only thinking of between £10 and £20 per month.

Thanks all.

craig1912

Just do an Aviva stakeholder through Cavendish and put it in the highest risk fund(s)- no point in playing it safe for such a long time scale

Marcon

Great idea. As suggested above, get a basic stakeholder for her. 'Only' £10 or £20 a month will add up nicely over the years.

kidmugsy

Are you using her JISA allowance to the full?

buel10

kidmugsy wrote: »

Are you using her JISA allowance to the full?

Thank you, all. Damn - no I’m not using it at all.

Regarding the stakeholder pension - can I ask what the advantages are over a SIPP?

cloud_dog

buel10 wrote: »

Hi all,

My daughter is one year old and I am thinking of starting a SIPP for her. However, I am guessing that the possible issue with this is is that I am inexperienced in investing so could well jeopardise the investment? Any thoughts, please?

Yes.

Do you think that your child may benefit from some sort of additional financial assistance earlier in life than age 55/57?

Are you considering / already implementing something to assist in younger life (uni, property, etc, <<insert applicable>>)?

Also, depending on what and how you are saving for your DD, I assume you appreciate that money deposited in to an account in your DD name will be the child's money; not yours to allow them to spend or not?

dunstonh

I nearly always use a stakeholder pension for child/grandchild pensions. The thought of an 18 year old getting access to a SIPP and all the things you can do wrong with it does not appeal. You really cant do much wrong with a stakeholder as the provider funds are all mainstream.

Alexland

I am investing to help our son and unborn child with their education and property deposit so they get a good start in life. The benefit of locking away money into a child pension seem marginal after considering it will be taxed on withdrawal. Some of our S&S LISAs will be used for their property deposit as when I am 60 they will be early 20s. When we are gone they will inherit our property which they can use for retirement costs if they so wish.

Alex

kidmugsy

Alexland wrote: »

When we are gone they will inherit our property which they can use for retirement costs if they so wish.

Unless it had to pay for your care.

Alexland

kidmugsy wrote: »

Unless it had to pay for your care.

Indeed but it is sufficiently valuable would pay for many years care if required.

Marcon

cloud_dog wrote: »

Y
Also, depending on what and how you are saving for your DD, I assume you appreciate that money deposited in to an account in your DD name will be the child's money; not yours to allow them to spend or not?

That's one of the advantages of a pension...'the law' generally prevents access at an early age!