best way of saving for grandaughters future?

sadexpunk

Baldytyke88 said:

Olinda99 said:

have you thought of setting up a pension ?

That is what I did for my 24 years old, even better for someone younger. Let them earn their own money and work out how life works, some people havnt grown up until after their twenties.just thinking aloud, 

just thinking on the hoof.....im sure theres a flaw in it somewhere tho

lets say the investment's the same (lifestrategy80) in either a JISA or a SIPP.  and lets say at 18, GD has £10,000 in her JISA (not considering compound interest at this point).  if it were a SIPP she'd have an extra 20% paid in by the government, so £12,000.

if she then withdraws the £10,000 from JISA and starts a SIPP with it, she'll get 20% added and we're up to £12,000 again, same as if itd been in a SIPP all along? 

im a bit of a financial doofus so im sure theres a flaw in that cunning plan   and im guessing the flaw is compound interest along the way making the SIPP grow more than the JISA, im not sure

eskbanker

Pension contributions are capped to annual earnings, so she'd need to be earning £12K (or more, allowing for auto-enrolled work pension) for that particular scenario to be viable.

sadexpunk

eskbanker said:

Pension contributions are capped to annual earnings, so she'd need to be earning £12K (or more, allowing for auto-enrolled work pension) for that particular scenario to be viable.

ahhh yes im with you.  im amazed that that was the only flaw in my thinking tho  

and tbh, i only said £10,000 for round numbers, at £25pm over 14 years itd be way less than that in reality so probably still a viable option.

thanks

Albermarle

sadexpunk said:

eskbanker said:

Pension contributions are capped to annual earnings, so she'd need to be earning £12K (or more, allowing for auto-enrolled work pension) for that particular scenario to be viable.

ahhh yes im with you.  im amazed that that was the only flaw in my thinking tho  

and tbh, i only said £10,000 for round numbers, at £25pm over 14 years itd be way less than that in reality so probably still a viable option.

thanks

Probably the other flaw, is that the chance of an 18 year old deciding to lock away their money for 40 years is somewhere around zero.

sadexpunk

Probably the other flaw, is that the chance of an 18 year old deciding to lock away their money for 40 years is somewhere around zero.

yes ive considered that, and its fully expected to be honest, but hey, if we're giving the money to her then its hers to do as she wished i spose.

ShinyStarlight1

sadexpunk said:

HL - grandparents can set up a DD and they say there are no fees.

I looked at the HL website but I couldn’t see the bit where it says grandparents can set up a JISA - it seemed to say only parents or legal guardians could do so.

xylophone

I looked at the HL website but I couldn’t see the bit where it says grandparents can set up a JISA - it seemed to say only parents or legal guardians could do so.

Nobody claimed that HL (or  other providers)  said that grandparents could open a JISA.

What HL says is 

• Simple - once opened by a parent or guardian, anyone can contribute to a Junior ISA

HedgehogRulez

Why VLS80 though! Yuk’

sadexpunk

do you have a better recommendation?  im also looking at investing in this with my SIPP but reading up on it i see theres a heavy uk weighting.  what would you recommend for a more global spread of investments?

thank you.

Oldhand_2

HedgehogRulez said:

Why VLS80 though! Yuk’

My thoughts too. Personally I would go for VG Global All Cap, VG Developed World ex-UK Equity, or Fidelity Index World. All three have produced good returns, being good, better and best in that order, and are fit and forget. There are other global all equity funds of course, but these are what I'm in with my grandchildren's JISA and JSIPP's. The VGLS80 has 20% bonds and a heavy UK bias, both of which a long-term investment doesn't, or may not, need.