Investing and growing money for child's future

crashdesk

I am sure this is similar to other posts but this is specific to my circumstances.

I have two children and want any money given to them to grow well. They are 8 and obviously thinking about stocks & shares JISA.

I have seen that Hargreaves Lansdown have zero fees and you can choose a fund category based on risk level. I was just wanting to get opinions, based on first hand experience on H&L JISA.

I am not adverse to receiving information on other JISAs or any other advice on giving my boys a good headstart in their financial life.

SIPP a good idea too?

Normal savings accounts? (I know about the £100 interest limitations)

Many thanks in advance

C

El_Torro

You could start paying into a SIPP for them. Just worth remembering that it's going to be at least half a century before they can access the money. A lot will happen between now and then. Might be better to give them a head start early in life and they can sort out their retirement themselves.

If you want to invest £9k a year or less per kid then sticking to a Stocks & Shares ISA is probably enough. If you want to put away more than that then you might need to be more creative.

Just on Hargreaves Lansdown specifically: Their ready made portfolios are very expensive. You get the cost of an IFA without any of the service. Investing in a global tracker or multi asset fund will most likely be much better value for money.

crashdesk

Thank you @El_Torro

I assumed the ready made portfolios were fee free. I will see if I can gain enough knowledge to invest in the correct funds myself. A lot more research to do but on the right track.

Albermarle

https://forums.moneysavingexpert.com/discussion/comment/81935583#Comment_81935583

With HL ( and Fidelity) the platform fees for a JISA are zero. However the investments held in the JISA will have a charge. You will not see this explicity as it will be taken directly out of the fund.

Investment charges can typically be between 0.1% and 1.5%. HL branded managed investments are not known for being low cost.

crashdesk

Thanks @Albermarle

After a little more research I am thinking of using Hargreaves Lansdown and opting for 'Vanguard LifeStrategy 80% Equity (Accumulation)'. Fidelity was also and option but for this fund the costs are the same and apparently the HL app is better and more detailed information regarding investing etc.

Sound like a good starting point?

InvesterJones

Too much information can be a bad thing. The main thing is to have easily understandable information for whatever decisions you need to make. In the case of setting an investment aside for a long time, that's not a lot!

Albermarle

https://forums.moneysavingexpert.com/discussion/comment/81936007#Comment_81936007

There are a lot more complaints about HL on these forums than for Fidelity. Their customer service seems to have gone downhill in the last 12 months.

Nurse2047

I use fidelity for my children’s JISAs easy to use and no fee

crashdesk

All set up and running in Fidelity. Thank you so much everyone.

crashdesk

just a further note on this as first time setting up JISA and using Fidelity, the settlement date for transferring cash is 31st March and I paid by debit yesterday 26th. Why is it going to take so long and will it always take that long?

InvesterJones

https://forums.moneysavingexpert.com/discussion/comment/81940269#Comment_81940269

Settlement always takes a while. Fidelity usually allow your money to be put to use as soon as it arrives however, effectively loaning you the amount until it settles - transfers might be different to deposits though.