One-off Purchase of Shares in a Specific Company

drumlinruby

Tom99 wrote: »

How old are the children? Investing in a single company is very high risk, so unless they can afford to potentially lose all or most of their investment not a good choice.
I think with Halifax SD you can set up a share-dealing account then use a one-off regular investment to buy at £2 dealing fees. No other fees in the future unless you want to reinvest the dividends.

Thanks. They are 3yrs & 3mnths old!! It's part of a much larger investment for them which is mostly safe investments like premium bonds. If it turns out to be the wrong decision we have agreed to cover the losses so they do not miss out.

drumlinruby

jimjames wrote: »

Did the relative specify exactly the company that you had to buy? It seems a bit unusual to do so if they've left them money rather than leaving them shares.

Buying £2000 in one company is very high risk and unless the will specifies that exact company you may want to consider whether this is in the best interests of the children.

Thank you. This investment is only part. The letter of wishes set out what their 'wishes' were. Mostly been invested in safe investments like ISA's, Premium bonds etc. We have already agreed that we will cover any losses ourselves.

drumlinruby

Keep_pedalling wrote: »

How old are your children? If they are minors then as a trustee you should not gamble their inheritance on a single company.

If they are very young I would set each of them up with a S&Ss JISA with it all invested in a global multi asset fund. If they are nearer their 18th birthday (16 in Scotland) then a cash JISA would be more appropriate.

Thank you. We are acting in accordance with a Letter of Wishes left alongside the Will. These shares are only part of the investment with others being 'safe' transactions like Premium Bonds & ISA's.

drumlinruby

cloud_dog wrote: »

What exactly was the gift, i.e. inheritance or a gift, and what exactly was stated?

Thanks we are acting in accordance with a letter of wishes. This gift is only part, the rest being safe low-risk investments.

Thrugelmir

redux wrote: »

I'm not sure that XO offers automatic reinvestment of dividends.

If the chosen shares do have dividends, I'd suggest iWeb, with a fee of 2% of the reinvested amount, no minimum charge, or a range of others such as 1%, with £1 mimumum, or £1.50 flat fee.

X-O don't offer a reinvestment facility. Other than for their parent company's shares.

For the amounts involved. Might as well invest dividends received into premium bonds.

Keep_pedalling

drumlinruby wrote: »

Thanks. They are 3yrs & 3mnths old!! It's part of a much larger investment for them which is mostly safe investments like premium bonds. If it turns out to be the wrong decision we have agreed to cover the losses so they do not miss out.

So you are planning to put most of the money into savings paying less than inflation, and a small part of it in a high risk investment. Sorry that makes no sense for children so young. I would ignore the letter of wishes and take professional advice.

IDontHaveAUserName

drumlinruby wrote: »

Hoping someone can help and apologies if this is very basic!!
My children have been left £2,000 from a relative. We are looking to buy shares in one specific company that is listed on the stock exchange. We do not want to do regular transactions and we are looking to invest for a minimum of 5 years.
I have done a bit of research but it looks as though I have to instruct a broker to do this for me but they then charge a monthly fee which varies depending on how many transactions we do - but we won't be doing any other than the initial purchase.
We know that we will need to pay fees to complete the purchase but wondering if there was a way of doing it without having to incur monthly fees?
I appreciate the investment is very small but we are trying to act upon the wishes of the relative!! Any help much appreciated. Thank you.

Correct me if I'm wrong, you want to buy physical shares in a company right? I'm afraid that's not possible anymore as far as I know.

And please bare in mind that you buy shares through a trading company (Broker) and for example you bought the shares at £3/share and in one month the value of the shares goes to £0.5 you will loose your money.

Can you tell me which company are you talking about?

If you don't want to share that publicly, send me a PM and I'll look it up.

Sea_Shell

The letter of wishes is not binding on you, it is a guide only. I can understand why you might not want to go against it, but it really might not be in your children's best interests to stick with its "recommendations", unless the deceased was an IFA.

How much money are we talking about here, in total, per child? £5000 or £50,000?

Seek advise, do more research about ALL the options available for ALL of the money, and do what's right for your children. Your decisions now could literally mean differences of ££££'s if you get it wrong.

LobsterMemory

IDontHaveAUserName wrote: »

Correct me if I'm wrong, you want to buy physical shares in a company right? I'm afraid that's not possible anymore as far as I know.

And please bare in mind that you buy shares through a trading company (Broker) and for example you bought the shares at £3/share and in one month the value of the shares goes to £0.5 you will loose your money.

Think you're wrong, there are still brokers where you can carry out certificated share dealing

In any case, you can buy online through a nominee holding and then transfer it to a certificated holding (for a fee)

IDontHaveAUserName wrote: »

And please bare in mind that you buy shares through a trading company (Broker) and for example you bought the shares at £3/share and in one month the value of the shares goes to £0.5 you will loose your money.

1 It doesn't mean you'll lose your money, it just means that you're down £2.50 a share. You only lose it if you sell it

2 What difference does buying through a broker have in this scenario? It's just the same if you hold certificates

Lungboy

IDontHaveAUserName wrote: »

If you don't want to share that publicly, send me a PM and I'll look it up.

This seems like a potentially bad idea, I'd suggest the OP keep everything in the open to avoid potential for scamming.