JISA for 8 year old to buy and forget ..

[Deleted User]

can anyone recommend a JISA for my niece .. Looking to give a lump sum of around £2000 split between a a world ftse tracker and a Legal General tech.

She is 8 years.

The parents will be doing the setting up .
  
Maybe topping up yearly on birthdays but most likely buying and forgetting about so something easy to setup with low fees.

have looked online at hargreaves or fidelity but not too sure.

thanks

masonic

HL's or Fidelity's charges are hard to beat, being free. I've had a better customer service experience from the former.

incus432

It appears HL offer a JISA completely free of platform and dealing fees. In contrast to their adult accounts which can be dear. Just be prepared to move out when they reach 18 and transfer to an adult ISA.

https://www.hl.co.uk/investment-services/junior-isa/savings-interest-rates-and-charges

Albermarle

incus432 said:

It appears HL offer a JISA completely free of platform and dealing fees. In contrast to their adult accounts which can be dear. Just be prepared to move out when they reach 18 and transfer to an adult ISA.

https://www.hl.co.uk/investment-services/junior-isa/savings-interest-rates-and-charges

They copied Fidelity, who had the original fee free JISA.

 Looking to give a lump sum of around £2000 split between a a world ftse tracker and a Legal General tech.

With Tech surging in recent years, I think sticking with the global tracker would help a bit if there was a tech led crash.

incus432

Albermarle said:

They copied Fidelity, who had the original fee free JISA

Just like student banking, both hoping that inertia wins the day and they stay for good.

Alexland

incus432 said:

Just like student banking, both hoping that inertia wins the day and they stay for good.

I've been with Fidelity with one account or another continuously for over 20 years and never needed to complain and they still offer me pretty good value. My experience with an account at HL for a few years was less satisfactory as they made an error during an LISA transfer which took ages to resolve with HMRC. Individual experiences will vary they are both solid choices. My kids have their free JISA and SIPP accounts at Fidelity.
In terms of investment choices for an 8 year old's JISA it very much depends when they might want to spend the money so it probably isn't a 'buy and forget' situation as derisking prior to withdrawal may help give more certainty of outcome.

[Deleted User]

Alexland said:

incus432 said:

Just like student banking, both hoping that inertia wins the day and they stay for good.

I've been with Fidelity with one account or another continuously for over 20 years and never needed to complain and they still offer me pretty good value. My experience with an account at HL for a few years was less satisfactory as they made an error during an LISA transfer which took ages to resolve with HMRC. Individual experiences will vary they are both solid choices. My kids have their free JISA and SIPP accounts at Fidelity.
In terms of investment choices for an 8 year old's JISA it very much depends when they might want to spend the money so it probably isn't a 'buy and forget' situation as derisking prior to withdrawal may help give more certainty of outcome.

Thanks , when you say " when they want to spend the money "  what do you mean .. I thought they could manage the account at 16 and not access the funds until they were 18..  it is not a massive amount but guessing may keep up with inflation .. Does Fidelity offer something similar to a global tracker.? Thanks again

masonic

Quite often a lump sum is needed as a deposit for a first home, or used to fund some other expense early on in adulthood. So the investment horizon might not be much greater than 10 years, in which case some derisking ought to take place before the child gets control of the account.

Fidelity offers a very wide range of investments, as does HL, so you are unlikely to be limited in choice. A cheap global tracker will be a good starting point, but it should probably not be forgotten for the full 10 years.

incus432

My own approach when investing in son's CTF then JISA was not to derisk at all, and keep to the full fat equity portfolio. He hasn't needed it yet, being a student, and the value is well over double the total contributions. He has learned quite a bit from watching it and understanding different funds and bonds. It will be very handy when he does decide to buy a house.

Alexland

[Deleted User] said:

Thanks , when you say " when they want to spend the money "  what do you mean .. I thought they could manage the account at 16 and not access the funds until they were 18.. 

They might withdraw at 18 or they might leave it invested for much longer so the derisking prior to withdrawal strategy would need to be based on when it's likely they would spend the money.

it is not a massive amount but guessing may keep up with inflation .. Does Fidelity offer something similar to a global tracker.? Thanks again

Fidelity have most tracker funds including their own Fidelity Index World which I tend to use in the kids accounts. For a long time that was the only fund held in those accounts but I have stated introducing a proportion of bonds now their forward prospects look reasonable again.

noclaf

I also use Fidelity for my son.....as he has another 15 years before he can access so its invested into 100% Equities(single fund to make life easier). Very happy with Fidelity, generally simple and easy to use.