Money left in will for daughter to invest - where?
Stevev99
Forumite 163 Posts
Hi,
Our 5 year old daughter was left a small amount of money in her Grandmother's will (£2000), this has now finished all the probate etc. and the solicitors are asking us where we'd like to invest this until she's 18.
Obviously £2k is not a huge amount of money but for 12-13 years I'd like to think I put it somewhere reasonable.
Any ideas anybody?
Thanks,
Steve.
Our 5 year old daughter was left a small amount of money in her Grandmother's will (£2000), this has now finished all the probate etc. and the solicitors are asking us where we'd like to invest this until she's 18.
Obviously £2k is not a huge amount of money but for 12-13 years I'd like to think I put it somewhere reasonable.
Any ideas anybody?
Thanks,
Steve.
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Nuns! Nuns! Reverse!
'I do my job, do you do yours?'
link for info.
Thank you Honey Bear
Five Year Fixed Rate Bond which pays 4.59% which you can open by post
You say "smart money" but thats assuming that we don't enter into a period of high inflation as the gains here would be eroded in real terms.
I'm not sure where I would invest but I don't think over the time period you are looking at you could really go wrong by investing in a commodities tracker or possibly oil.
A bit more high risk than the fixed interest figures but much more likely to be able to keep up (or ahead) of inflation imo but obviously this is in line with the risk v reward curve.
It all depends on your risk appetitie really.
But seriously, you may both be correct, and it is possibly worth the OP considering doing both things. A lot of it depends on the OPs risk attitude and what, if any, other sort of financial security the child may have or expect.
As the OP's daughter is 5 she may have a CTF in which case it might worth putting some in there (you are limited to £1200 per annum.
Me, I am more of an invest sort of person and considering the OPs daughter has at least another 12-13 years to go I would seriously consider this option.
My suggestion, without know full facts etc, would be to split it 50/50 savings and investment.
cloud_dog
Sometimes.... I am like a dog with a bone
I didn't say that it wasn't smart but if QE is allowed to get out of control (this govt hardly has a good track record on the economy) then inflation is highly likely to rise and rise quickly at that.
You say that its quarter point movements, it wasn't that long ago there was a 1 point reduction in interest rates (remember it?).
I'm not saying that your idea is the best or mine is the best but your idea wouldn't look so good if inflation got to 6 or 7%.
Personally, I wouldn't be locking money away for such a long period of time as 5 years as the economy is still in a situation where anything can happen and in that situation tying your money up for an excessively long period of time is probably not that smart. If it was a 1year or maybe 18 month bond then I may be with you but I think 5 years is too long in the current environment and econominc outlook that we look at as its no use putting your money somewhere where it can be eroded by inflation.
thanks for this link - it says the maximum for one bond is £3000. does anyone know how many bonds can be taken out per child?
I really want to put the money where he can't access it until he's 18 but don't even know what options I have let alone the best one.
MrPoshman... you suggested investing but could this fit in with my plan? Ideally, I'd like to make the investment his (in his name) just not allow access to it so he can follow it and watch it grow (hopefully!) and learn about investing. Can you give me any more info, or help?
Thanks!
TT