Long Term Saving for Children - WDYD?

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  • Malthusian
    Malthusian Posts: 10,898
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    capital0ne wrote: »
    Not this old chestnut, in that case just stuck £2,880 pounds in an envelope, seal it and write their name on it with a note saying if you had invested in a pension you could have had x thousand more"

    False dichotomy. What you mean is "stick £2,880 in an Junior ISA and when it becomes theirs, say if I'd invested in a pension you could have exactly the same amount but not be able to access it for education, house purchase, travel, raising children etc".

    In any case we're not talking about the OP's money that they could put into a child's pension, we're talking about money that third parties are giving to the child. The child will be absolutely entitled to access that money at 18 (16 in Scotland) which means their trustees cannot put it into a pension.
    Georg1o wrote: »
    Investing the money that will go to your kids isn't a good idea. There's the risk of losing them and this money, basically, aren't yours.


    Nonsense and possible postcount spam.
  • principlecounts
    principlecounts Posts: 300
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    edited 16 October 2019 at 10:29PM
    I've read most of this thread, one theme that stands out is expecting the child to have done something wise with the savings at 18 years old. My response to this is, I think if you can't stomach the funds going to waste, then don't put the funds in the child's name. I raised this also with an IFA, and their response was the same, and added if you have significant costs for the child before they hit 18, you definitely shouldn't be using a JISA if it prevents you from meeting costs in the earlier years. With that in mind, I've taken half way house, and setup a JISA S&S for career/adulthood expenses and opened up cash accounts with roughly inflation beating interest rates which I can withdraw to meet the more short term costs. It may help your strategy in knowing roughly the purpose of each savings pot and whether/when in the child's life you need access.
    Student loan: Cleared.
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