Child's compensation investment options

K_Hart

Hi, just joined and looking for some views from the forum. My 13yr old son has just been awarded an out of court settlement from the local authority following an accident. The value is around the £15k mark. I am keen to invest this for him so that he can access it when he turns 18. Can anyone share their views on the best options on the market?

Thanks
K

ChopperST

K_Hart wrote: »

Hi, just joined and looking for some views from the forum. My 13yr old son has just been awarded an out of court settlement from the local authority following an accident. The value is around the £15k mark. I am keen to invest this for him so that he can access it when he turns 18. Can anyone share their views on the best options on the market?

Thanks
K

5 years is just on the cusp of being appropriate to be invested. If you are risk adverse you may wish to keep the money in cash instead.

aroominyork

ChopperST wrote: »

5 years is just on the cusp of being appropriate to be invested. If you are risk adverse you may wish to keep the money in cash instead.

Perhaps it's better to say that five years is the cusp of when you would stop being invested, since if there is a market crash you are allowing five years for your funds to recover. So if your son was 8 years old you might invest it in equities and start de-risking it when he turned 13.

xylophone

The money needs to be held in bare trust for your child until he is 18.

Five years is probably too short a period to consider investment.

You might consider proceeding as here (post 18)

https://forums.moneysavingexpert.com/discussion/5994498/where-to-invest-inheritance-my-kids-have-been-left

Malthusian

The timeframe is only 5 years if he will spend all the money as soon as he turns 18. Will he?

Although he is a minor, and has no say in how the money is invested until his 18th, he should still be involved in the discussion (if he is willing and able to be).