Investing for children

Scuzi

Scuzi

Scuzi

Man of Honour
Joined
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I've been thinking about opening a savings account for my son so that he has something to fund his education, personal development or to aid with buying a house. The more I look at what is on offer in the form of traditional savings accounts, the more I'm considering less conventional investments.

One particular route I have considered is buying precious metals. Over a long term (20 years) it would appear to be a fairly "safe" option. It also offers a bit more flexibility with regard to moving countries (something we may consider in 10-15 years) as, if I'm not mistaken, we wouldn't be at the mercy of exchange rates to the same degree.

What long term investments are you using for your children and what do you consider the positives and negatives of these?
 
Invest it in me. I will turn it to millions, and give him a percentage.

That or I can share with him all the memories I forgot thanks to immense amount of wonderful booze.
 
Sir, I am sending you a cheque with my signature on it. Write whatever amount you require on it. I have 100% faith.
 
We plough money into ISA's at the moment, for similar reasons that you want to save, giving our kids the opportunity to do what they would like to do when they finish their education with no restraints. How much money per year are you looking at here?
 
Scuzi said:
Sir, I am sending you a cheque with my signature on it. Write whatever amount you require on it. I have 100% faith.
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You Sir, are a man of intelligence, and integrity!

I have an idea. It is for a drink. It shall be called, Ass Juice!

People shall flock to bars asking for Ass Juice.

It shall make us millions, millions I say!
 
mollymoo said:
We plough money into ISA's at the moment, for similar reasons that you want to save, giving our kids the opportunity to do what they would like to do when they finish their education with no restraints. How much money per year are you looking at here?
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Probably about £5k to £8k per year. ISAs are a consideration, possibly as part of a diverse portfolio.
 
my dad collects gold and silver coins. his first few he bought for around £70 a few years ago are now worth around £300 each.

gold only ever goes up!
 
Lots of options Pensions, ISA's but possibly best would be a trust of one sort or another. Much more tax friendly.

oops edit seems a child trust fund may no longer be an option.
 
Scuzi said:
One particular route I have considered is buying precious metals. Over a long term (20 years) it would appear to be a fairly "safe" option. It also offers a bit more flexibility with regard to moving countries (something we may consider in 10-15 years) as, if I'm not mistaken, we wouldn't be at the mercy of exchange rates to the same degree.
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You're mistaken. The value of the dollar is a big influence on precious metal prices.
 
Only advice I will give you, whatever you open, don't open it in his name, else when he turns 18 it is his to waste and flitter away, if you do it in your name, even if it is reserved for him, then you retain control until you are happy he is wise enough to use it properly.
 
I'm considering the same problem at the moment. I think I'll take advice from an independent financial advisor as to which vehicle to put investment trust shares into. unless they suggest a better option.
 
Why is everybody ignoring my Ass Juice drink?

If you ALL put your children's savings into my idea, this time next year, we'll all be millionaires!
 
utajoker said:
my dad collects gold and silver coins. his first few he bought for around £70 a few years ago are now worth around £300 each.

gold only ever goes up!
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If only that were true, huh? :p

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Scuzi said:
I've been thinking about opening a savings account for my son so that he has something to fund his education, personal development or to aid with buying a house. The more I look at what is on offer in the form of traditional savings accounts, the more I'm considering less conventional investments.

One particular route I have considered is buying precious metals. Over a long term (20 years) it would appear to be a fairly "safe" option. It also offers a bit more flexibility with regard to moving countries (something we may consider in 10-15 years) as, if I'm not mistaken, we wouldn't be at the mercy of exchange rates to the same degree.

What long term investments are you using for your children and what do you consider the positives and negatives of these?
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Over the long term equities have been the best investment in terms of return (even vs gold) and I really don't like bonds as an investment right now if you want exposure to a bond fund make sure its duration neutral or duration hedged or you could lose a lot of capital if rates start to rise

Right now I'd look at building a global equity portfolio (with some allocation to emerging markets) since most fund managers under perform the benchmark over longer periods 10+ years you are best off finding a good ETF tracker for a few equity bench marks all you want to look for is low fees and low tracking error.
 
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