Fire & Forget Stocks and Shares ISA

thundyuk

Hey forum goers,

So, I have a young niece who has just been born and I read an article recently that stated if someone when born had around £5000 invested in an ISA or other stocks/shares tracking type account they'd be able to retire very comfortably.

With that in mind, I want to help my niece out & set up some kind of ISA fund where I drop in £5k or so and just "forget about it" almost like it's a stocks and shares pension fund - where some fund manager does his/her best to grow the fund and charge a fee for it.

What's my best option there do you think? I have read stuff on robo accounts & that, but I'm not sure of the best fit - but maybe that's just me misunderstanding them and they are the best option? I really just want to go "Here's some money, do your best to make us all something over 40 years, and take your fee."

Or is a pension a good option? Could her parents set up some kind of managed pension fund then I just drop in some money via a company like Fidelity?

Any thoughts out there anyone? 

As always, thanks!

eskbanker

thundyuk said:

So, I have a young niece who has just been born and I read an article recently that stated if someone when born had around £5000 invested in an ISA or other stocks/shares tracking type account they'd be able to retire very comfortably.

It obviously depends on what markets and economies do over her life but that really isn't a particularly realistic expectation!

Up to you but personally I'm not a big fan of gifting into pensions for youngsters and would feel happier setting up a pot that'll be useful when finances are stretched in early adult life (a generalisation, granted), so I'd argue that a more conventional option would be to put the money in a Junior ISA, which would need to be opened by her parents, and would be accessible to her at 18.  Fidelity and HL both have low-cost JISAs with a wide range of funds available, so bunging it in a global equity tracker within one of those would be a viable 'fire and forget' option - you're making the initial decision but a diversified passive investment needing little attention should still fit the bill....

Albermarle

Junior ISA | Invest in a Junior Stocks and Shares ISA | Fidelity

thundyuk

Thank you both very much for your help