2k inheritence for a 6 year old

sunshine_shell

Evening all,

My daughter has been gifted 2k from her great great uncle and I'm wondering what to do with it for the best? Any advice?

There seem to be so many different options!

eskbanker

A junior ISA would seem a sensible bet, preferably a stocks and shares one in which the money has a decent chance of outperforming inflation over the 12 years until she turns 18, after which she'll have unfettered access to the money.

As well as MSE's piece at https://www.moneysavingexpert.com/savings/junior-isa/, this post from another thread links to a good selection of reading material:

xylophone wrote: »

https://www.gov.uk/junior-individual-savings-accounts

https://www.vanguardinvestor.co.uk/investing-explained/stocks-shares-junior-isa

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

https://www.coventrybuildingsociety.co.uk/consumer/product/savings/children/junior-cash-isa.html

https://moneytothemasses.com/quick-savings/parents/best-junior-stocks-and-shares-isa

Alexland

Did the uncle give any guidance on how they would prefer the money be spent?

If not then I guess holding it safe for 12 years until age 18 in a Junior ISA would probably be best.

If you are only going for a balanced risk S&S JISA investment then frankly you might be better in a Cash JISA as child interest rates can be fairly attractive. If you go for a more adventutous S&S asset allocation and keep fees low it should hopefully outperform a cash product. Consider how you would reduce risk as you get within the final years before the child may wish to withdraw the money.

Alex

sunshine_shell

Thanks for the help! Looks like I have some research to do, I know she will get the money when she turns 18, hopefully it will help pay for a car or something more sensible!