Investments for Children

chrisrsmith

Any suggestions for investments for my two children 6 months and 5 years old. Have some inheritance that I wish to invest for their future.

Thank you

Keep_pedalling

When do you plan for them to have access to the money? If you are happy for them to have access at 18 the a S&Ss JISA might fit the bill. These need to be set up by a parent or guardian, but anyone can fund them, which is what we have done with out grand children. 

Albermarle

Due to their ages, then pick an investment within the JISA, that is high in equity ( shares) as this should grow more over the long term.
Two providers offer JISA's with no platform fee.
Fidelity & Hargreaves Landsdown.
Both offer low cost global index trackers ( mentioned frequently on this forum )

chrisrsmith

Keep_pedalling said:

When do you plan for them to have access to the money? If you are happy for them to have access at 18 the a S&Ss JISA might fit the bill. These need to be set up by a parent or guardian, but anyone can fund them, which is what we have done with out grand children. 

At 18 years old. Thank you

noclaf

This is not to be taken advice but my son's JISA is all invested in HSBC FTSE ALL WORLD (ACC)...a single global equity fund which makes it easy to manage.

Albermarle

noclaf said:

This is not to be taken advice but my son's JISA is all invested in HSBC FTSE ALL WORLD (ACC)...a single global equity fund which makes it easy to manage.

Or Fidelity World P would be a very similar alternative.

kempiejon

Albermarle said:

noclaf said:

This is not to be taken advice but my son's JISA is all invested in HSBC FTSE ALL WORLD (ACC)...a single global equity fund which makes it easy to manage.

Or Fidelity World P would be a very similar alternative.

Those 2 are Open Ended Investment Companies, OEICs, low charges 0.12/.13%, some prefer an ETF as different brokers charge different rates for ETFs to OEICs. In the global market place iShares SWDA and Vanguard VWRP are 2 I looked at, charge more at 0.2/0.22% but can save on platform costs.

Kotokos

markets are currently in decline and have been for weeks, I'd steer clear as a new investor unless you're able to tolerate heavy losses straight off the bat. 

poseidon1

Kotokos said:

markets are currently in decline and have been for weeks, I'd steer clear as a new investor unless you're able to tolerate heavy losses straight off the bat. 

Agree, this may be a period for newbie investors to drip feed monthly into any of the  global funds mentioned rather  than wade in with all guns firing.

 A steep correction trigger by falls in the USA ( aggravated by a weakening dollar) , could be very off-putting for a new investor. Its not brilliant for us more experienced hands, but at least we have been through both the upsides and downsides of the markets, if invested long enough.

Albermarle

kempiejon said:

Albermarle said:

noclaf said:

This is not to be taken advice but my son's JISA is all invested in HSBC FTSE ALL WORLD (ACC)...a single global equity fund which makes it easy to manage.

Or Fidelity World P would be a very similar alternative.

Those 2 are Open Ended Investment Companies, OEICs, low charges 0.12/.13%, some prefer an ETF as different brokers charge different rates for ETFs to OEICs. In the global market place iShares SWDA and Vanguard VWRP are 2 I looked at, charge more at 0.2/0.22% but can save on platform costs.

The platforms mentioned for the JISAs are HL and Fidelity, which have no platform charges for JISAs, so the lower cost OEIC funds mentioned are the cheapest option.

Albermarle

Kotokos said:

markets are currently in decline and have been for weeks, I'd steer clear as a new investor unless you're able to tolerate heavy losses straight off the bat. 

So in fact could be a good time to invest.

Although the important S&P 500 is down 2% YTD ( for UK based investor, the strong Dollar has made it look worse) 
Over the same period the FTSE 100 is up 6% and European stocks are up > 10% .

In any case without a crystal ball, nobody knows what will happen next.