Investing £70,000 for a child

Options
13

Comments

  • Zorillo
    Zorillo Posts: 774 Forumite
    First Anniversary Name Dropper First Post
    Options
    Consider Bailey Gifford Children's Saving Plan perhaps? No maximum limit, and if you do it as a designated account it stays in your name. I'm sure other similar plans exist, but this is currently my planned next move when I'm happy that the JISA has enough in it.

    https://www.bailliegifford.com/en/uk/individual-investors/how-to-invest/childrens-savings-plan/
  • gash
    gash Posts: 52 Forumite
    Options
    Will check it out Zorillo. Cheers!
  • Alexland
    Alexland Posts: 9,653 Forumite
    First Anniversary Photogenic Name Dropper First Post
    edited 13 April 2018 at 9:08PM
    Options
    Although I am in favour of the BG CSP (have recently opened one for our son to regular invest in Monks investment trust) be careful of dividend and capital gains tax when considering large sum unwrapped investments.
  • xylophone
    xylophone Posts: 44,425 Forumite
    Name Dropper First Anniversary First Post
    Options
    I take it that this money is an absolute gift to the child.

    If this is the case, then you will hold it in bare trust for her and she will be absolutely entitled to access and control at the age of 18.

    Does she have a CTF/JISA?

    http://forums.moneysavingexpert.com/showthread.php?p=74149187#post74149187

    You might consider setting aside around £25.000 into a Nationwide Smart Limited Access account and gradually moving into JISA.

    You might consider opening a stocks and shares account in bare trust with the balance and investing in a balanced multi asset portfolio.

    http://www.hl.co.uk/investment-services/investing-for-children

    http://monevator.com/using-vanguard-lifestrategy-funds-life/

    http://monevator.com/low-cost-index-trackers/

    https://www.vanguardinvestor.co.uk/investing-explained/stocks-shares-junior-isa
  • theoretica
    theoretica Posts: 12,306 Forumite
    First Post Name Dropper Photogenic First Anniversary
    Options
    gash wrote: »
    Hi. Thanks for the response. It is something I will consider. But if I'm honest, my ex wife, my daughters mother, is aware of the 70k being given to our daughter (in my care), and if I managed to lose some of it, I'd never hear the end of it and probably have to make the shortfall up myself.
    .

    A way round this might be to discuss this with your mother. If the money was given to be invested then you would be able to say you were following the donor's wishes.
    But a banker, engaged at enormous expense,
    Had the whole of their cash in his care.
    Lewis Carroll
  • justme111
    justme111 Posts: 3,508 Forumite
    First Post First Anniversary Combo Breaker I've been Money Tipped!
    Options
    Zorillo wrote: »
    Consider Bailey Gifford Children's Saving Plan perhaps? No maximum limit, and if you do it as a designated account it stays in your name. I'm sure other similar plans exist, but this is currently my planned next move when I'm happy that the JISA has enough in it.

    https://www.bailliegifford.com/en/uk/individual-investors/how-to-invest/childrens-savings-plan/

    I keep asking this question every time someone mentions plans like this as I don't understand - if the investment is in YOUR name as it appears to be what is the difference between it and any other investment in any other fund that does not have "designated for a child label on it ? What stops one from opening ANY investment and calling it " for a child" for the purposes of keeping tabs on what is where ? Why recommend this particular one over zillion of other platforms and investments ? Sorry I genuinely don't understand.
    The word "dilemma" comes from Greek where "di" means two and "lemma" means premise. Refers usually to difficult choice between two undesirable options.
    Often people seem to use this word mistakenly where "quandary" would fit better.
  • ValiantSon
    ValiantSon Posts: 2,586 Forumite
    edited 14 April 2018 at 4:13AM
    Options
    Alexland wrote: »
    There are some backed by some pretty huge charitable or religious trusts that cost less.

    Namely?

    Ignoring bursaries and scolarships (which are not guaranteed until they are offered), I am unaware of any independent day school charging significantly less than I quoted. (The Independent Grammar School, Durham, would be one if it had yet to actually be accredited as a school by the DfE - and I will be amazed if they are going to be able to survive with the incredibly low fees that they propose).
  • Alexland
    Alexland Posts: 9,653 Forumite
    First Anniversary Photogenic Name Dropper First Post
    Options
    Our local Catholic school, which seems to be providing a good education to our friends children, charges under £600 per month over 12 months including wrap around care until 6pm and cover for school holidays if desired. Admittedly this is at primary but in supporting both parents to continue working would enable money to be put aside for when the fees get a bit more expensive in secondary years.
  • ValiantSon
    ValiantSon Posts: 2,586 Forumite
    Options
    Alexland wrote: »
    Our local Catholic school, which seems to be providing a good education to our friends children, charges under £600 per month over 12 months including wrap around care until 6pm and cover for school holidays if desired. Admittedly this is at primary but in supporting both parents to continue working would enable money to be put aside for when the fees get a bit more expensive in secondary years.

    Thanks for that. I was specifically talking about secondary schools (as I said, "assuming the OP's daughter went at 11"). Primary and prep schools are cheaper than secondaries. Mean average fees for a day school at secondary level would be around £14,000 per annum (skewed somewhat by some very expensive fees for particular schools), and as I said, the bottom end would approach £11,500.
  • Alexland
    Alexland Posts: 9,653 Forumite
    First Anniversary Photogenic Name Dropper First Post
    edited 14 April 2018 at 6:29AM
    Options
    justme111 wrote: »
    I keep asking this question every time someone mentions plans like this as I don't understand - if the investment is in YOUR name as it appears to be what is the difference between it and any other investment in any other fund that does not have "designated for a child label on it ? What stops one from opening ANY investment and calling it " for a child" for the purposes of keeping tabs on what is where ? Why recommend this particular one over zillion of other platforms and investments ? Sorry I genuinely don't understand.

    Yes if you don't go with the bare trust version it is just designated for the child. You can also get an adult plan with slightly higher minimum payments.

    Investment trusts have the ability to use conservative gearing (borrowing against their assets to buy more assets) which has the potential to increase the return compared to an OEIC fund. Most platforms would charge a share dealing trade cost (at least £5 with iWeb) so ITs are usually uneconomical for small regular contributions. However with the BG CSP there are no trade costs and the fund management costs are very reasonable.

    However in the case of a large lump sum then to avoid tax implications feeding into ISA(s) may be a more appropriate way to invest.

    Alex
This discussion has been closed.
★ ★ ★ Meet your Ambassadors

Categories

  • All Categories
  • 343.2K Banking & Borrowing
  • 250.1K Reduce Debt & Boost Income
  • 449.7K Spending & Discounts
  • 235.3K Work, Benefits & Business
  • 608.1K Mortgages, Homes & Bills
  • 173.1K Life & Family
  • 247.9K Travel & Transport
  • 1.5M Hobbies & Leisure
  • 15.9K Discuss & Feedback
  • 15.1K Coronavirus Support Boards