I'd like to create a monthly investment for my children

Nsar1

Hi, I'd like to create a modest monthly investment for each my children (22 and 24 yrs old). I'd like to be fairly adventurous in what I invest in. Not exotic stuff like wine or sports car futures but more like PE funds with long term growth in mind rather than income. What's the best way to set up this kind of low level monthly scheme that avoids painful fees? I'm assuming I'm looking at a SIPP.
Thanks in advance

eskbanker

Are you thinking of something you own and manage, where you gift them the proceeds at a later date of your choosing?

Nsar1

Hi I'd imagine that this would be set up in their name from the start with me paying in and managing on their behalf if that's possible, if only to avoid any CGT down the line. 

Albermarle

What's the best way to set up this kind of low level monthly scheme that avoids painful fees? I'm assuming I'm looking at a SIPP.

In general fees are pretty low nowadays if you shop around.

Why do you assume you are looking at a SIPP ?

You haven't really provided enough background info. For example do you already have any other investments, pensions etc?

Nsar1

What info can I add....? I was assuming a SIPP as this would be a long term investment for them, but I'm here to seek advice.
Thanks

eskbanker

Nsar1 said:

Hi I'd imagine that this would be set up in their name from the start with me paying in and managing on their behalf if that's possible, if only to avoid any CGT down the line. 

As they're adults, they'd need to open and manage anything in their name, unless there's any sort of condition necessitating someone else managing their finances for them?  You should still be able to pay in but obviously would need to discuss all this with them as they're on the hook for their own tax situation, etc, and if you had SIPPs in mind then they wouldn't be able to access the money for 30-35 years!

Albermarle

You can't set up a SIPP , or any other pension ,  for another adult. . They would have to set their own up .
You could gift the money to them and they could contribute to it , but they would be limited in how much they could contribute by how much taxable income they earned and any other pensions they were contributing to ( at their workplace for example)
By the way CGT is not relevant with investments in a pension.

Nsar1

Thank you and to Eskbanker. Understood on setting up themselves, that's fine. I may be better to set up an ISA?

grumiofoundation

Nsar1 said:

Thank you and to Eskbanker. Understood on setting up themselves, that's fine. Any other investment channels you'd suggest for this kind  of objective?

You post(s) don't really make it clear what the objective is?

Is it long term to help with their retirement (in which case pension/Stocks and Shares lifetime ISA would be most suitable).

Short term to buy a property (in which case cash lifetime ISA).

Or any time between this - in which likely case stocks and shares ISA.

However this will be in their name - what do they want/need?

Nsar1

Objective is to help them build for the long term, I'm inclined towards an ISA in case they want to access the funds before retirement. 

jimjames

Nsar1 said:

Thank you and to Eskbanker. Understood on setting up themselves, that's fine. I may be better to set up an ISA?

You can't setup an ISA for them either. Everyone over 18 can setup an ISA for themselves but others can't open one for other people even if they are their children.
I don't think others can pay into an ISA for you either so you'd need to transfer the money to them and they then pay it in