Helping Grandchild 7 March at 8:58PM in Savings & investments 6 replies 458 views

eric4395

Looking to try and help our 3 grandchildren as much as we can for there future. We have already deposited £4000 into a Lisa for our 20 year old .we plan to do this for the next 4 years therefore he will have £20,000 + towards his first house. We will do the same for our 16 year old grandson when he reaches 18.
We have a 6 year old granddaughter and would be looking to invest  or save a  lump sum of 10-£15000  till she was 18, although like all grandparents not to comfortable that she would have access to this at that age. Any suggestions as to what you would advise or do to maximise this sum of money. I'm still not to sure if 6 years is enough time to invest in stock market etc due to world's current problems.

xylophone

Does your granddaughter have a JISA?

Albermarle

We have a 6 year old granddaughter and would be looking to invest  or save a  lump sum of 10-£15000  till she was 18, although like all grandparents not to comfortable that she would have access to this at that age

The access at 18 issue is regularly discussed on the forum . You have three choices.

1) Have an account in her name and she gets full access at 18

2) Have an account in your name and let her have the money when you think appropriate.

3) Do a bit of both.

Any suggestions as to what you would advise or do to maximise this sum of money. I'm still not to sure if 6 years is enough time to invest in stock market etc due to world's current problems.

Not sure where the 6 years comes from, if she is 6 then it will be minimum 12 years. Normally this is sufficient to ride out any market ups and downs, and see a better return than you would from savings. The world always has had problems and always will. So in a historical context todays events are not particularly out of the ordinary.
This platform for JISA's is often mentioned as it waives its platform fee for Junior accounts.
Junior ISA | Invest in a Junior Stocks and Shares ISA | Fidelity

eric4395

Albermarle said:

We have a 6 year old granddaughter and would be looking to invest  or save a  lump sum of 10-£15000  till she was 18, although like all grandparents not to comfortable that she would have access to this at that age

The access at 18 issue is regularly discussed on the forum . You have three choices.

1) Have an account in her name and she gets full access at 18

2) Have an account in your name and let her have the money when you think appropriate.

3) Do a bit of both.

Any suggestions as to what you would advise or do to maximise this sum of money. I'm still not to sure if 6 years is enough time to invest in stock market etc due to world's current problems.

Not sure where the 6 years comes from, if she is 6 then it will be minimum 12 years. Normally this is sufficient to ride out any market ups and downs, and see a better return than you would from savings. The world always has had problems and always will. So in a historical context todays events are not particularly out of the ordinary.
This platform for JISA's is often mentioned as it waives its platform fee for Junior accounts.
Junior ISA | Invest in a Junior Stocks and Shares ISA | Fidelity

Apologies don't know where the 6 years comes in that I referred to. So yes 12 years of investment for a 6 year old or maybe split the lump sum into stocks and shares and the other half a Jisa maybe ? 

xylophone

So yes 12 years of investment for a 6 year old or maybe split the lump sum into stocks and shares and the other half a Jisa maybe ? 

Do you mean a stocks and shares JISA and a cash JISA for your grandchild?

The child's annual JISA allowance can be split between the two.

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

Or do you mean that you would invest in stocks and shares in your own name with the intention of making a gift at a time of your choosing and contribute to a cash/stocks and shares JISA for your grandchild?

eric4395

xylophone said:

So yes 12 years of investment for a 6 year old or maybe split the lump sum into stocks and shares and the other half a Jisa maybe ? 

Do you mean a stocks and shares JISA and a cash JISA for your grandchild?

The child's annual JISA allowance can be split between the two.

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

Or do you mean that you would invest in stocks and shares in your own name with the intention of making a gift at a time of your choosing and contribute to a cash/stocks and shares JISA for your grandchild?

Not really sure at the moment best way to go?

xylophone

Not really sure at the moment best way to go?

It is a case of remembering that a contribution to an account that is legally and beneficially owned by the child is a gift that will fall into the control of that child at the latest by age 18.

I have known people who had more sense at age 18 than they did when they were thirty....

At all events, we can none of us predict the future.