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At that length of time !!- I would grab gold as a "starter" (physical) - - I think it will far outperform FIAT over that time period

BUT if I am incorrect - it would be relatively easy to swap AU back to Fiat  -

then go for an index tracker (when and if the markets look better)

IMHO

5huggy

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Be careful what you choose. I set up child trust funds for my boys and both have been abismal.  Don't mind naming either, Scottish friendly and RBS. They managed to lose money even when the stock market was roaring. Still took their 2% or whatever though. I seriously think they performed deliberately poor as they were too much hastle and wanted the accounts to transfer elsewhere.

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Vanguard offer a Junior ISA with very low fees and good index tracking funds (their founder championed passive tracker index investing)  but the minimum investment is £100 a month, you can do lump sums though instead once initial £500 is invested.

Worth pointing out with Junior ISA that the child will gain control of this when they reach 18 - so possible they go through a few "rebel" years and decide to take the money out and blow it on good times etc. So may not be suitable if you want to ensure they get the money only when a lot older or when you decide.

Edited by blindedbythelight

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I see my Gold stack as my little ones pension. I hope to educate her on it as she gets older and hope she picks it up. 

I’m also saving  some Fiat in a normal account. She can have this when she is 18 for a car/travelling. I hope that by making this available to her when she is young she can blow off steam while keeping my gold stack for later life. 

Im open to other ideas though. 

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Do you want a pension or to set up savings in an ISA for use at 18. In theory the compounding and tax benefits will be the same in either an ISA or a pension so its rather a question of when you want her to access the money. I understand the reluctance of giving an 18 year old access to a decent sum, I wonder whether there is more value in a pension. I guess it depends what they do with the money :D

I have not done a pension yet, we just set up buying low cost trackers in a couple of Junior ISA's for the kids a few years ago, paying in monthly and buy a set amount of physical gold per year.

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You can contribute up to £2880 to a Junior SIPP, and with the 25% tax back it goes up to £3600.

However, be aware that if you do this year after year then even with average growth rates it could quite possibly run into the lifetime allowance (current £1.05m) well before their pension age, such is the power of compounding from such an early age.

Of course, this would be a nice problem to have, but it is a problem nonetheless. 

I personally don't see the tax relief as a better deal than having their own tax-relief + employer contributions when they eventually start working (let's say from age 22 onwards), so it might be a better idea to contribute towards a Junior ISA instead, or at least split between the 2 wrappers.

I have set up both JSIPP and JISA from my little 'un, but I prioritize the JISA. The ISA will allow access to money when they most need it for things like university, home deposit, starting a business etc, while the JSIPP will be their million-pound windfall.

Edited by vand

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On 25/11/2019 at 21:29, Bullionbilly said:

Got the little en's savings going nicely, looking to set up a pension ( if its worth it ) .

She's 6. Im looking at options for a pension. 

Anyone set up something ? Or and advise ?

Thanks in advance¬†ūüĎć

 

Do not go with ANYTHING that involves giving money (fiat) to a third party like a bank or other such scam.

Start stockpiling gold and silver on her behalf instead and then hand it over when she reaches a decent mature enough age to be able to continue it herself, and explain to her why so. And also constantly remind her to keep her trap firmly shut regarding said gold/silver stockpiling.

Oh, and teach her how to fight (BJJ) and shoot/hunt etc.

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I find this a bit of a dilemma. The Jnr ISA is good apart from the fact they get access at 18 - I have always been pretty shrewd but i still wouldn’t trust my 18 year old self with a big lump sum.

Same as with premium bonds bought for them, they ultimately have access and can choose to blow it all while they are still financially immature. OR they could win a million and forget to look after their poor old parents LOL.

I don’t see anything wrong with putting aside a pot, whether in gold, your own ISA or even buying property with a view to handing it to a child when they come of age. I understand there’s other complications and it’s useful to have extra allowances for the child if you’re already maxing out your own allowances.

I also want my kids to value money and not think their old man is a bottomless money pot. So although i could buy them a house, a car etc I would much rather do the minimum to push them in the right direction so they don’t need me - even though I’d be there. I think thats why we don’t alway see the generational transfer of wealth - the kids who are spoiled don’t have the hunger to take their parents wealth to the next level as they are so used to spending it.

Edited by AuricGoldfinger

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On 29/11/2019 at 10:54, tallyhojim said:

Do not go with ANYTHING that involves giving money (fiat) to a third party like a bank or other such scam.
 

Total nonsense. 

It's SHTF survivalists like you that give PM investors a bad rep.

Edited by vand

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On 29/11/2019 at 10:54, tallyhojim said:

Do not go with ANYTHING that involves giving money (fiat) to a third party like a bank or other such scam.

Start stockpiling gold and silver on her behalf instead and then hand it over when she reaches a decent mature enough age to be able to continue it herself, and explain to her why so. And also constantly remind her to keep her trap firmly shut regarding said gold/silver stockpiling.

Oh, and teach her how to fight (BJJ) and shoot/hunt etc.

What's BJJ?

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On 26/11/2019 at 18:44, KDave said:

Do you want a pension or to set up savings in an ISA for use at 18. In theory the compounding and tax benefits will be the same in either an ISA or a pension so its rather a question of when you want her to access the money. I understand the reluctance of giving an 18 year old access to a decent sum, I wonder whether there is more value in a pension. I guess it depends what they do with the money :D

I have not done a pension yet, we just set up buying low cost trackers in a couple of Junior ISA's for the kids a few years ago, paying in monthly and buy a set amount of physical gold per year.

Ive got a savings account for her with a few thousand in. This is for a house deposit and shes not blowing it on bad¬† especially a silly expensive wedding ūü§£ ( im a tight arse yorkshireman )

I wanted to start a pension aswel so she could retire early . ( shes only 6 ) so it'd be worth something if she took it over at 18 and looked to retire at say 55.

 

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On 28/11/2019 at 21:18, vand said:

You can contribute up to £2880 to a Junior SIPP, and with the 25% tax back it goes up to £3600.

However, be aware that if you do this year after year then even with average growth rates it could quite possibly run into the lifetime allowance (current £1.05m) well before their pension age, such is the power of compounding from such an early age.

Of course, this would be a nice problem to have, but it is a problem nonetheless. 

I personally don't see the tax relief as a better deal than having their own tax-relief + employer contributions when they eventually start working (let's say from age 22 onwards), so it might be a better idea to contribute towards a Junior ISA instead, or at least split between the 2 wrappers.

I have set up both JSIPP and JISA from my little 'un, but I prioritize the JISA. The ISA will allow access to money when they most need it for things like university, home deposit, starting a business etc, while the JSIPP will be their million-pound windfall.

Could i transfer from her savings a lump of £2880 anually and get the 25 % ?

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On 29/11/2019 at 11:12, AuricGoldfinger said:

I find this a bit of a dilemma. The Jnr ISA is good apart from the fact they get access at 18 - I have always been pretty shrewd but i still wouldn’t trust my 18 year old self with a big lump sum.

Same as with premium bonds bought for them, they ultimately have access and can choose to blow it all while they are still financially immature. OR they could win a million and forget to look after their poor old parents LOL.

I don’t see anything wrong with putting aside a pot, whether in gold, your own ISA or even buying property with a view to handing it to a child when they come of age. I understand there’s other complications and it’s useful to have extra allowances for the child if you’re already maxing out your own allowances.

I also want my kids to value money and not think their old man is a bottomless money pot. So although i could buy them a house, a car etc I would much rather do the minimum to push them in the right direction so they don’t need me - even though I’d be there. I think thats why we don’t alway see the generational transfer of wealth - the kids who are spoiled don’t have the hunger to take their parents wealth to the next level as they are so used to spending it.

Id not tell her it was there until she needed it.

Ill see if i could draw it out myself before her 18th into another account for her.

Also , like you i dont want her thinking daddies a cash machine

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3 hours ago, Bullionbilly said:

Could i transfer from her savings a lump of £2880 anually and get the 25 % ?

Yes. The platform provide will automatically reclaim the tax back on your behalf on deposits into the SIPP. Takes a few weeks.

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7 hours ago, vand said:

Yes. The platform provide will automatically reclaim the tax back on your behalf on deposits into the SIPP. Takes a few weeks.

Great. Thanks. Ill take a look into them, are any better than others ?

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