Junior ISA questions?

paulstevo

Keep_pedalling said:

How old is your daughter?

Daughter is 12 and watching last MSE on tv did imply for long term low risk S&S Junior Isa would be a better fit than standard one.
Or that's what ML was implying .

Alexland

paulstevo said:

Daughter is 12 and watching last MSE on tv did imply for long term low risk S&S Junior Isa would be a better fit than standard one.
Or that's what ML was implying .

Well that's at least 6 years so a suitable timeframe for investment to stand a high chance of a good result provided you don't go too high risk.

You can get free S&S Junior ISA accounts from Fidelity (provided you stick to funds) or Hargreaves Lansdown but they both start charging ongoing fees from age 18 (but you she can always ISA transfer elsewhere as other providers might be more suitable for her adult S&S ISA). My kids are with Fidelity but there's nothing wrong with HL.

https://www.fidelity.co.uk/junior-isa/
https://www.hl.co.uk/investment-services/junior-isa

Once you have the account then you can use it to invest in ready-made multi-asset funds available at various risk levels and an ongoing cost of around 0.2% pa which the fund manger automatically deducts from the fund assets so you don't need to do anything to pay it.

A couple of forum favourites are the Vanguard LifeStrategy and HSBC Global Strategy series - these are the fund manager websites but you would buy the fund units via the Junior ISA account login at Fidelity or HL.

https://www.vanguardinvestor.co.uk/investing-explained/what-are-lifestrategy-funds
https://www.assetmanagement.hsbc.co.uk/en/intermediary/capabilities/multi-asset/hsbc-global-strategy-portfolios

If you picked the Vanguard LifeStrategy 60 (60% equity amd 40% bonds) or the HSBC GS Balanced (similar %ages) then they might drop around 25% in a bad market crash.

With funds you usually have the choice of Accumulation or Income units depending on if you want them to pay regular distributions (dividends) into the account cash balance. For a JISA where you can't withdraw the income anyway you would pick Accumulation units so the fund manager will automatically reinvest income.

Nurse2047

I have my children’s s&s isas and SIPPs with fidelity, took the jump from cash to s&s a few years ago and so glad I did.