Better option than Fidelity for Junior SIPP/Junior S&S ISA?

B0bbyEwing

Wanting to open a Junior SIPP & Junior S&S ISA for a new born.

Fully aware parents will have to open for the child & that's no problem there as this thread is created on the back of a discussion with the mother.

After creating a thread on current accounts/savings accounts for the child, one member said they weren't sure Fidelity was the best option, so for the sake of asking, here I am to ask about it.

Now I fully appreciate "best" is a wishy-washy term that means different things for different people. 

I would imagine that in this scenario where the Junior ISA as a minimum would be 18 years (& could then be accessed) and the junior SIPP would be 18 years minimum (but then could not be accessed) that the "best" provider would be the cheapest?

And for the go-and-use-Google-before-asking crew, Googling the Junior SIPP and the Junior S&S ISA, Fidelity to me seems to tick that box, no? So in what situation would another provider be a better option?


Moving on from provider, what kinds of funds would you be looking at here? I mean specific examples and not just "a global tracker" or "a cheap global tracker". 
I'm guessing keeping it simple would be best - just 1 fund will do the job really, just a case of choosing.

Have only ever invested for a situation like my own which was starting at about 30 so welcome the feedback. 

xylophone

There is an article which may be worth a read.

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

You will note that Fidelity comes under the "cheapest S&S Junior ISA for most people" category.

https://monevator.com/low-cost-index-trackers/

dunstonh

Wanting to open a Junior SIPP & Junior S&S ISA for a new born.

Whilst Junior ISAs exist, there is no such thing as a Junior SIPP.    Pension legislation is that minors can have any pension type from the day they are born.   So, virtually all individual pensions will allow this.

Any company you see referring to "junior SIPP" is just marketing. 

Albermarle

Moving on from provider, what kinds of funds would you be looking at here? I mean specific examples and not just "a global tracker" or "a cheap global tracker". 
I'm guessing keeping it simple would be best - just 1 fund will do the job really, just a case of choosing

Due to the time scale involved, I think most people would recommend a simple global tracker. Which one is not that important. Some include emerging markets. Some are funds and some ETF's. Again the end result difference would be marginal.

You could look at Fidelity World  Fidelity Index World Fund P Accumulation Key Statistics | GB00BJS8SJ34 | Fidelity

Other posters may suggest others.

B0bbyEwing

xylophone said:

There is an article which may be worth a read.

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

You will note that Fidelity comes under the "cheapest S&S Junior ISA for most people" category.

https://monevator.com/low-cost-index-trackers/

Thanks for the link. Going to be tomorrow now with other stuff I've to sort once I get off here but I'll give that a read.

dunstonh said:

Wanting to open a Junior SIPP & Junior S&S ISA for a new born.

Whilst Junior ISAs exist, there is no such thing as a Junior SIPP.    Pension legislation is that minors can have any pension type from the day they are born.   So, virtually all individual pensions will allow this.

Any company you see referring to "junior SIPP" is just marketing. 

Thanks for the clarification. I wasn't aware.

So in that case, when I say Junior SIPP read "pension for newborn".

Albermarle said:

Moving on from provider, what kinds of funds would you be looking at here? I mean specific examples and not just "a global tracker" or "a cheap global tracker". 
I'm guessing keeping it simple would be best - just 1 fund will do the job really, just a case of choosing

Due to the time scale involved, I think most people would recommend a simple global tracker. Which one is not that important. Some include emerging markets. Some are funds and some ETF's. Again the end result difference would be marginal.

You could look at Fidelity World  Fidelity Index World Fund P Accumulation Key Statistics | GB00BJS8SJ34 | Fidelity

Other posters may suggest others.

Thanks for response. I actually have that fund with one of my providers. Nice to know I'm in the right kind of area.

B0bbyEwing

Hmm, I'm confused - the article suggests Wealthify as the best S&S ISA in this scenario. 

With 18 years as the minimum term for this, I would've thought keeping costs low would be a high priority if not the highest priority.

And to me, Fidelity seems cheaper than the rest so I'm not sure why they're suggesting Wealthify over Fidelity to be honest. 

And for that reason Fidelity will be the one being picked. Go with your gut & all that. 

Albermarle

B0bbyEwing said:

Hmm, I'm confused - the article suggests Wealthify as the best S&S ISA in this scenario. 

With 18 years as the minimum term for this, I would've thought keeping costs low would be a high priority if not the highest priority.

And to me, Fidelity seems cheaper than the rest so I'm not sure why they're suggesting Wealthify over Fidelity to be honest. 

And for that reason Fidelity will be the one being picked. Go with your gut & all that. 

Maybe they get more commission/advertising from Wealthify ?

ChilliBob

I'm with Fidelity for my two children, I didn't see any sense in going elsewhere - not sure you'd do much better than:

* No platform fees
* No dealing fees for OEICs
* Even a tiny discount on Fidelity World P index fund, making it marginally cheaper than elsewhere

The only reason I can think of is if they didn't have a fund you wanted - I have fidelity, II, Lloyds and iWeb, both II and iweb were willing to add funds for me when I asked, Fidelity was a no. But, for what you want this shouldn't be a. Issue. 

dunstonh

Hmm, I'm confused - the article suggests Wealthify as the best S&S ISA in this scenario. 

Do not mistake referral links or limited suggestions to be advice on what is best.

B0bbyEwing

ChilliBob said:

The only reason I can think of is if they didn't have a fund you wanted -

That was literally the only thing I could think of as everything else pointed towards Fidelity from what I'd read.

As i frequently seem to misunderstand things, certainly in this area, I have a habit of doubting myself, assuming I must've got something wrong when someone (or some site - that link in this case) says something else. 

Nice to look at it through other folks eyes & I'll be sticking with the original recommendation of Fidelity. Obviously the parents can go with whoever they wish & do their own research (unlikely on that second part) but if I suggest Fidelity then it's likely my sister will go with them.
And at any rate, it'll be better than doing absolutely nothing.