Junior ISA

ispookie666

I contribute to JISA and Junior SIPP (or just SIPP) - I have both with Fidelity.  I moved over from HL, as they charged fees for Junior ISAs(they do not charge fees currently). 
  
Some of the advantages of SIPP are the years of compounding (comparing 12 yrs vs 40 ish for your) and the top-up from HMRC.  

Fidelity Index world fund P is what I invest in. Vanguard and HSBC have similar funds.  
Or you could accumulate good quality stocks and hold them forever, which I have also done.  

For Fidelity - Junior ISA contributions can be changed online, but you must send a paper form to change Junior SIPP contributions.  

Alan2020

Thank you all for your insightful comments, much appreciated. Made me a lot more knowledgeable- thank you all

barker77

Currently thinking of doing this too. If I invested in high risk funds - how often would I be able to move any profit out? Also can you move into standard cash Isa accounts to make it “safe”? 

topyam

I decided against a JISA as I don't trust that the £££ won't be wasted away as soon as they reach the age when it is theirs.

I have a SIPP for each of my kids.

The rest I will keep in my name and hopefully grow it.

A will is important too.

Alexland

barker77 said:

Currently thinking of doing this too. If I invested in high risk funds - how often would I be able to move any profit out? Also can you move into standard cash Isa accounts to make it “safe”? 

On a DIY platform such as Fidelity or HL that offer free S&S JISA accounts you can invest in Money Market funds from Vanguard, Royal London etc which offer similar stable rate of returns to a good Cash ISA. It usually takes a few days to switch some/all of the account valuation between funds.

Rather than switching out gains it's best to think of it as reducing the risk of the asset allocation as the date the money would be needed gets closer to get more certainty of outcome.

barker77

Alexland said:

barker77 said:

Currently thinking of doing this too. If I invested in high risk funds - how often would I be able to move any profit out? Also can you move into standard cash Isa accounts to make it “safe”? 

On a DIY platform such as Fidelity or HL that offer free S&S JISA accounts you can invest in Money Market funds from Vanguard, Royal London etc which offer similar stable rate of returns to a good Cash ISA. It usually takes a few days to switch some/all of the account valuation between funds.

Rather than switching out gains it's best to think of it as reducing the risk of the asset allocation as the date the money would be needed gets closer to get more certainty of outcome.

But no way to put into a standard cash isa (junior)? 

Alexland

barker77 said:

But no way to put into a standard cash isa (junior)? 

JISAs do allow for transfers between types however generally the providers tend to require whole account transfers rather than partial transfers so if you still wanted to continue taking high risk with the investments while harvesting the gains to safety (not that I am suggesting that is a good strategy as it's not how most of the regulars here would invest) then you could use a money market fund within the same S&S JISA account.

barker77

Alexland said:

barker77 said:

But no way to put into a standard cash isa (junior)? 

JISAs do allow for transfers between types however generally the providers tend to require whole account transfers rather than partial transfers so if you still wanted to continue taking high risk with the investments while harvesting the gains to safety (not that I am suggesting that is a good strategy as it's not how most of the regulars here would invest) then you could use a money market fund within the same S&S JISA account.

Oh wow that seems not great there just surely be a way ?! 

Nurse2047

I have fidelity JISAs and SIPPs for my kids, £25pm into sipp just gives them a bit of a start and time for compounding. 

cloud_dog

barker77 said:

Alexland said:

barker77 said:

But no way to put into a standard cash isa (junior)? 

JISAs do allow for transfers between types however generally the providers tend to require whole account transfers rather than partial transfers so if you still wanted to continue taking high risk with the investments while harvesting the gains to safety (not that I am suggesting that is a good strategy as it's not how most of the regulars here would invest) then you could use a money market fund within the same S&S JISA account.

Oh wow that seems not great there just surely be a way ?! 

I don't agree with your strategy per se, unless there is a specific reason to sell down investments / hold cash; other than trying to time the markets, but what exactly is wrong with moving assets into short term money market funds? 

I appreciate that they are not as safe as vanilla cash savings, but they are relatively low risk and are returning comparable interest to cash savings JISA. Have you actually looked in to some of the STMMF mentioned?  Or are you expecting to be able to access some of this JISA money, e.g. transfer some to a ISA and then withdraw?