Where to invest inheritance my kids have been left

xylophone

It is very true to say we are inexperienced investors! It all baffles me I have to admit.

If you wanted to consider a stocks and shares JISA

https://www.vanguardinvestor.co.uk/investing-explained/stocks-shares-junior-isa?cmpgn=PS0517UKPABJI0001&gclid=EAIaIQobChMIj5bmwpf94QIVmOiaCh24CwieEAAYAiAAEgKNN_D_BwE&gclsrc=aw.ds

https://monevator.com/using-vanguard-lifestrategy-funds-life/

might be worth a look.

Albermarle

These links may help for background. It does seem complicated to begin with but being more financially educated could bring you and your family significant benefits in the long term and not just for the specific situation for the children
.https://www.moneysavingexpert.com/banking/
https://www.moneyadviceservice.org.uk/en# - ( banking and savings tab)

cc120

DiggerUK wrote: »

The only place to get interest is in a savings account. Savings rates, even long term, don't get to preserve what you lose against inflation.
Equity investment schemes such as ISA's carry unknown risks going forward.
In such a case I would buy them *UK gold coins, they will not become valueless, and looking at 10+ years forward, it is a good time frame to allow you to ride out any ups and downs in the price of gold. You will be relying on capital growth only to increase their value.
(*UK legal tender gold coins are free of VAT, and don't attract any taxes)

If you go with my suggestion I would recommend you buy something like a 1oz gold Britannia coin per month to smooth out price fluctuations , and use any left over change to take them out for a weekend. They are a bit meaty at the moment, £1,000+ each.

Here is a site I use and recommend..._ https://atkinsonsbullion.com/

My parents bought me gold coins that got stolen in a burglary.

Newnoel

cc120 wrote: »

My parents bought me gold coins that got stolen in a burglary.

Why did they give you stolen coins? Hardly a good example to a child.

steampowered

Malthusian wrote: »

Given there is a 9- and 12-year timeframe for investment, a simple globally diversified multi-asset fund would be more appropriate as the trustees appear to be inexperienced investors.

This.

Over a >10 year time period, sensible investment fund is a no brainer.

10 years is plenty of time for the "ups and downs" of stocks to iron themselves out. Over a 10 year period, the "inflation risk" of keeping money in cash savings accounts far exceeds the "investment risk" of stocks and shares.

Pokerchick

xylophone wrote: »

Read the first link in my post above - potentially almost the whole of the inheritance for this child could be in the Coventry JISA in fairly short order.

Thanks again for all your help and advice. I did read the first link you posted about the CTF. I got a bit confused about what you could put in annually as I thought it was only one amount but I've just read it again and can see that the CTF runs between birthdays. So the issue I think I'll have is that her birthday is on the 8th May. If I'm understanding this correctly, I'll be unable to get any money in before her birthday as the money is still with the solicitor and would not be able to be sorted before Tuesday (7th) especially as we have a BH. So if I put it in after her birthday this year, would I still be able to put the JISA allowance in for this tax year after it has been transferred?

Also, is there any benefit to maybe splitting the money so that £5k is put into a cash JISA and £5k into an investment fund?

xylophone

The easiest option might be first to open an account (which you control) for each child into which the cheques (£10,000 each) can be paid initially.

For example

https://www.halifax.co.uk/savings/kids/kids-saver/


You can then decide what to do.


For the child with the CTF, your first step might be to contribute the full amount to the CTF. Her "year" starts again next Tuesday.

You could then transfer the CTF to the Coventry JISA - this would enable you to make the full 2019/20 tax year contribution to the JISA.

The balance could stay in the Halifax until 6/4/20 when you could transfer it to the JISA.

Once you have a JISA (as opposed to a CTF), it would be possible to transfer to the Vanguard stocks and shares JISA if you wished.

For the second child, you would open the JISA cash/shares/divide between the two/ and make the 2019/20 contribution from the Halifax account.

If you decide to stay in cash, (this would be a perfectly legitimate decision) keep an eye on JISA rates so as to be sure of getting the highest rate for your child.

xylophone

If I'm understanding this correctly, I'll be unable to get any money in before her birthday as the money is still with the solicitor and would not be able to be sorted before Tuesday (7th) especially as we have a BH. So if I put it in after her birthday this year, would I still be able to put the JISA allowance in for this tax year after it has been transferred?

See below (but note increase in allowances).

https://www.gov.uk/government/publications/isa-manager-bulletin-65/guidance-transfer-of-a-child-trust-fund-to-a-junior-isa

25A.6.2
The annual subscription limit for a CTF is based on the child’s birth year while Junior ISA subscriptions are based on tax years. Where a CTF is transferred to a Junior ISA, the CTF provider does not need to pass any subscription details to the Junior ISA manager. Once the transfer has been made, the child can access the full Junior ISA subscription limit for the tax year of transfer regardless of any subscriptions made to the CTF in that year.

For example, the child’s birthday is 1 October so his CTF subscription year runs from 1 October to the following 30 September. The subscription limits for both a CTF and a Junior ISA are £4,080. The CTF is transferred to a Junior ISA on 1 December 2015. Subscriptions of up to £4,080 could be made to the CTF between 1 October 2015 and 30 November 2015. Once the account has been transferred to a Junior ISA, subscriptions of up to £4,080 can be made between 1 December 2015 and 5 April 2016. The Junior ISA manager

Pokerchick

I'm going to follow your advice to open the savings account to get the money from the Solicitors and then put the money in JISAs (transferring the CTF).

If I have more time later down the line then I may look into the investment side.

Your help and advice is very much appreciated so again thank you so much. I'll be looking into remortgaging next - are you good at those too??

george4064

DiggerUK wrote: »

The only place to get interest is in a savings account. Savings rates, even long term, don't get to preserve what you lose against inflation.
Equity investment schemes such as ISA's carry unknown risks going forward.
In such a case I would buy them *UK gold coins, they will not become valueless, and looking at 10+ years forward, it is a good time frame to allow you to ride out any ups and downs in the price of gold. You will be relying on capital growth only to increase their value.
(*UK legal tender gold coins are free of VAT, and don't attract any taxes)

If you go with my suggestion I would recommend you buy something like a 1oz gold Britannia coin per month to smooth out price fluctuations , and use any left over change to take them out for a weekend. They are a bit meaty at the moment, £1,000+ each.

Here is a site I use and recommend..._ https://atkinsonsbullion.com/

Very inappropriate and unsuitable advice here.

OP - I would strongly recommend NOT to do the above!