Fluffy question alert! Keeping motivated on fire

Anonymous101

I'd echo that. We'll attempt to bring our children up to be financially savvy and teach them about investing etc when the time is right. We'll try to help out with University and House deposits too.

I don't understand the obsession some people have with inheritances. Hopefully you'll live long enough to see your children well into adulthood and they should be capable of looking after themselves by that point. I'd actually see myself as a bit of a failure as a parent if they weren't standing on their own feet by the time they're in their mid 20's.

Likewise I've told my parents I don't expect anything from them. They've earnt that money, I want them to enjoy it as much as possible. If there's any left when they've gone then great but it shouldn't be a consideration in their spending.

cloud_dog

Just a couple of comments for this thread, hopefully a little relevant.

No glide path for me.  I have a planned date and have decided to plan to do nothing for 3 months (there obviously will be loads to do but ..).  If I find I miss 'working', I will simply look for a P/T job.

I have my loverly Excel workbook with lots of tabs, one of which being actuals against projected, and actuals and projecting forward.  At present we are 66% of the way to our target, and it is currently projecting we are 6 months ahead of schedule (obviously the target increases the earlier we stop).

As a by-product of starting a SIPP for our dependent (just to know one existed, and only contributing the minimum), I also see this as a way of gifting inheritance via a slow drip feed over time, and possibly bypassing all those later in life conundrums.  It is not the primary aim, but a useful add on to consider.

UrbanAchiever

cloud_dog said:

As a by-product of starting a SIPP for our dependent (just to know one existed, and only contributing the minimum), I also see this as a way of gifting inheritance via a slow drip feed over time, and possibly bypassing all those later in life conundrums.  It is not the primary aim, but a useful add on to consider.

Agree. I've contributed (the max allowable) into Junior SIPPs for my two kids, for the last 2 tax years.  They are 13 and 15 now.  I also pay £50 each per month into Junior ISAs.  The idea being that they will get the benefit of our cash when they really need it rather than when we die.  Whilst the Junior SIPPs sound like this is a long way off, my thinking is that in starting a pension so young, if they need earned income for buying a house etc, then at least they can put less into their pensions knowing they already have a decent pot building up.

anonmoose

I have often wondered about this since I heard Martin Lewis talk about having a pension for his child. Is there a minimum that below it's not worth doing? I think starting one however small might have a positive psychological impact on encouraging the kids to continue it.

I am with vanguard and it's small % fee so in theory even putting just 1k each a year would be worthwhile as there is not a big management fee on top of the fund fee. I was thinking of a low cost global tracker.

Or am I just better off focusing on a Lisa when they are old enough and uni fees if I have limited resources to contribute?

cfw1994

anonmoose said:

I have often wondered about this since I heard Martin Lewis talk about having a pension for his child. Is there a minimum that below it's not worth doing? I think starting one however small might have a positive psychological impact on encouraging the kids to continue it.

I am with vanguard and it's small % fee so in theory even putting just 1k each a year would be worthwhile as there is not a big management fee on top of the fund fee. I was thinking of a low cost global tracker.

Or am I just better off focusing on a Lisa when they are old enough and uni fees if I have limited resources to contribute?

There will never be a 100% right answer to this.
My view is always to spread your bets as best you can.  With what you can reasonably spare.
 
Put a small amount in a pension early for them - gets the power of compounding over a long time.  
Put some into a S&S LISA.   Ideally, when they are earning, try to max that out: it can double as a bit of pension backup if not used for a property (be aware of the restrictions/limits)
Put some into S&S ISA - money they can get if they need it.

All low cost trackers makes sense.

I'm with the others here who don't worry overly about inheritance. 
We *hope* to be around when ours are well established....when we are 80s, ours will be 50s.....better to try to help them early in life than dangle a carrot of wealth when we are gone. 
Help them appreciate the value of money, understand what the investments are and how THEY can take then on once they are earning: one of ours filled her LISA up last year all by herself: very satisfying 🤓👍

anonmoose

I have had a look and vanguard don't do a kids sipp so I am looking at fidelity.  Part of my pension is in Vanguard FTSE Global all cap and I want a similar for the kids sipps.  Is the Fidelity Index World Fund P Accumulation similar to the vanguard all cap?  Or is there a more suitable option?  It goes over my head to be honest.

I am just looking for a fairly broad global tracker with low fees.  From what I can gather Fidelity will just have the % fee and not any transaction fees so the same as my sipp with vanguard. 

coyrls

anonmoose said:

I have had a look and vanguard don't do a kids sipp so I am looking at fidelity.  Part of my pension is in Vanguard FTSE Global all cap and I want a similar for the kids sipps.  Is the Fidelity Index World Fund P Accumulation similar to the vanguard all cap?  Or is there a more suitable option?  It goes over my head to be honest.

I am just looking for a fairly broad global tracker with low fees.  From what I can gather Fidelity will just have the % fee and not any transaction fees so the same as my sipp with vanguard. 

You can buy Vanguard funds on the Fidelity platform.  The Vanguard platform is restricted to Vanguard funds only, the Fidelity platform in not restricted to Fidelity funds only.

anonmoose

Ah thank you I have found it.  I will probably stick with the Vanguard all cap unless there is any reason to go for a different fund.  When I researched a while back it sounded like there isn't massive differences between global tracker funds.

Kim1965

Anonymous101 said:

I'd echo that. We'll attempt to bring our children up to be financially savvy and teach them about investing etc when the time is right. We'll try to help out with University and House deposits too.

I don't understand the obsession some people have with inheritances. Hopefully you'll live long enough to see your children well into adulthood and they should be capable of looking after themselves by that point. I'd actually see myself as a bit of a failure as a parent if they weren't standing on their own feet by the time they're in their mid 20's.

Likewise I've told my parents I don't expect anything from them. They've earnt that money, I want them to enjoy it as much as possible. If there's any left when they've gone then great but it shouldn't be a consideration in their spending.

I think My wife and I are the only people we know not to have had or be getting an inheritance.
 If we need to use our sipps and not pass them on so be it. At leastwe own our own home and will not equity release. So they shiuld get something. 
 My hope thst bothchildren, one already on a career path, one a year or two from becoming chartered, shoukd both be financially sorted.