Savings for a 2 year old.
09 May 2014, 09:13 PM
#1
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Savings for a 2 year old.
Since our little one was born we've been dropping money into my Wife's own savings account. There is currently circa £3k in there.
Due to a death in the family, there is going to be a 4 figure addition to the account and we feel it's a good time to set up an account in the little one's name.
We've had a look around the net but figured real world SN opinion may prove the winner.
We are looking for an account which we can add to every month. Withdrawal ability isn't necessary as it will just be building until she is 18.
Any recommendations?
Due to a death in the family, there is going to be a 4 figure addition to the account and we feel it's a good time to set up an account in the little one's name.
We've had a look around the net but figured real world SN opinion may prove the winner.
We are looking for an account which we can add to every month. Withdrawal ability isn't necessary as it will just be building until she is 18.
Any recommendations?
09 May 2014, 09:38 PM
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Stakeholder pension for £2,880 each year. This is then topped up by the government to £3,600 as a tax-back incentive.
However, if someone was able to put the maximum into the fund, assume an average annual return of 6%. By the time they retire at 70 (which could be ‘early’ by then), they’ll have a pension pot of around £2 million! Having said that, the current stakeholder rules do allow you to have access to the money by the time you’re 55. At that stage, the pot will be smaller, but even if your grandchild decides to take it out at that point, it will still be well over £1 million.
However, if someone was able to put the maximum into the fund, assume an average annual return of 6%. By the time they retire at 70 (which could be ‘early’ by then), they’ll have a pension pot of around £2 million! Having said that, the current stakeholder rules do allow you to have access to the money by the time you’re 55. At that stage, the pot will be smaller, but even if your grandchild decides to take it out at that point, it will still be well over £1 million.
09 May 2014, 10:13 PM
#4
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Since our little one was born we've been dropping money into my Wife's own savings account. There is currently circa £3k in there.
Due to a death in the family, there is going to be a 4 figure addition to the account and we feel it's a good time to set up an account in the little one's name.
We've had a look around the net but figured real world SN opinion may prove the winner.
We are looking for an account which we can add to every month. Withdrawal ability isn't necessary as it will just be building until she is 18.
Any recommendations?
Due to a death in the family, there is going to be a 4 figure addition to the account and we feel it's a good time to set up an account in the little one's name.
We've had a look around the net but figured real world SN opinion may prove the winner.
We are looking for an account which we can add to every month. Withdrawal ability isn't necessary as it will just be building until she is 18.
Any recommendations?
Yes. Get her a btl
09 May 2014, 10:38 PM
#6
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I remember reading a great story (in the financial press) of a women who had dutifully put £xx amount away for 20 odd years in a savings plan ( might have been Scottish widows)
When she redeemed it, it was worth 68k - which was about 2k less than if she had put the cash under her mattress
She had just experienced the concept of Fiscal drag
When she redeemed it, it was worth 68k - which was about 2k less than if she had put the cash under her mattress
She had just experienced the concept of Fiscal drag
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10 May 2014, 08:10 AM
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10 May 2014, 10:13 AM
#10
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It would very much depend on your attitude to risk
If you are risk adverse, you would be looking at cash deposit, however the 'risk' is erosion by inflation.
Premium Bonds could be an option.
If you are prepared to take some risk then equities would be the way forward
Junior ISA perhaps
If you are risk adverse, you would be looking at cash deposit, however the 'risk' is erosion by inflation.
Premium Bonds could be an option.
If you are prepared to take some risk then equities would be the way forward
Junior ISA perhaps
10 May 2014, 11:07 AM
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10 May 2014, 03:34 PM
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Last edited by Brun; 10 May 2014 at 03:36 PM.
10 May 2014, 03:43 PM
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10 May 2014, 03:57 PM
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We did have a look on MSE which implies that 3% is about the best we're going to get for the amount of cash we are going to deposit.
Anyways, as me and the Wife has ISA's with the Leeds Building Society we asked in there. We have opened a trust account @ 3.04% which we have to deposit a max of £250 a month into so it's going to take 12 months to empty the Wife's account
Anyways, as me and the Wife has ISA's with the Leeds Building Society we asked in there. We have opened a trust account @ 3.04% which we have to deposit a max of £250 a month into so it's going to take 12 months to empty the Wife's account
10 May 2014, 05:03 PM
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Still a cracking idea though to put to the missus.
My Girlfriend was watching a car program with a MK2 Escort in it, Paid some thing like 4k & spent the same again restoring it, Sold it for 25k. She turned to me & asked if she paid would I do that
My Girlfriend was watching a car program with a MK2 Escort in it, Paid some thing like 4k & spent the same again restoring it, Sold it for 25k. She turned to me & asked if she paid would I do that
10 May 2014, 08:01 PM
#21
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How dare you work hard to earn money, pay tax on it, invest it, pay tax on that again and then have the audacity to give it to your own flesh and blood??
Capitalist pigs like you make me sick
10 May 2014, 09:59 PM
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You bang on about earning your success but for your kids you seek entitlement.
What sort of lesson in life is that?
Inheritance is a mechanism which concentrates power and wealth according to accident of birth. You side with this but out of the other side of your mouth speak of the justice of achievement based on merit.
Last edited by tony de wonderful; 10 May 2014 at 10:21 PM.
11 May 2014, 08:58 AM
#24
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But it isn't your beloved Capitalist meritocracy but a form of ascription; people having privileges and wealth based on nothing but blood.
You bang on about earning your success but for your kids you seek entitlement.
What sort of lesson in life is that?
Inheritance is a mechanism which concentrates power and wealth according to accident of birth. You side with this but out of the other side of your mouth speak of the justice of achievement based on merit.
You bang on about earning your success but for your kids you seek entitlement.
What sort of lesson in life is that?
Inheritance is a mechanism which concentrates power and wealth according to accident of birth. You side with this but out of the other side of your mouth speak of the justice of achievement based on merit.
Yes because in the real world (ie outside of an A level sociology discussion group) you can have both, both can coexist at the same time. They are not mutually exclusive in a mature first world country.
Unfortunately the same cannot be said in many developing countries but even some of them are improving.
So I can confidently confirm my stance on the matter is consistent, coherent and correct
11 May 2014, 10:03 AM
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I know, we should all be living in mudhuts, eating gruel and letting the land/wealth be "free".
******* crackpot that bloke
Tell he's not a parent, well except to a budgie maybe.
11 May 2014, 08:58 PM
#26
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Yes because in the real world (ie outside of an A level sociology discussion group) you can have both, both can coexist at the same time. They are not mutually exclusive in a mature first world country.
Unfortunately the same cannot be said in many developing countries but even some of them are improving.
So I can confidently confirm my stance on the matter is consistent, coherent and correct
Unfortunately the same cannot be said in many developing countries but even some of them are improving.
So I can confidently confirm my stance on the matter is consistent, coherent and correct
It requires a cognitive dissonance to accommodate.
12 May 2014, 09:23 AM
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The are some good rates on regular saver type accounts for children, and you have control of the money as it's in their name but you are the trustee.
I don't think I'd bother with a pension, I know it's a very pessimistic standpoint but what if your kid doesn't reach the age when they can draw down on a pension, lot of money lost.
Also be careful with junior ISAs etc. Unless you are maxing out your own ISA allowance year on year, and remember things are changing later this year and you'll be able to invest much more as cash if you want to, then I'd put the money into ISAs in your or your wifes name with a view to it being a bit of cash for the kids when they're older.
Problem with junior ISAs etc. is that once it's in there the cash is belongs to your kids, not you, there is no access to it until they're 18 and then it's theirs to do whatever they want with. Now in an ideal world they'll be sensible with that money and put it towards their Uni fees, first house etc. but there's nothing to stop them blowing the lot on whatever take their fancy. Not all 18 year olds are sensible with money.
I don't think I'd bother with a pension, I know it's a very pessimistic standpoint but what if your kid doesn't reach the age when they can draw down on a pension, lot of money lost.
Also be careful with junior ISAs etc. Unless you are maxing out your own ISA allowance year on year, and remember things are changing later this year and you'll be able to invest much more as cash if you want to, then I'd put the money into ISAs in your or your wifes name with a view to it being a bit of cash for the kids when they're older.
Problem with junior ISAs etc. is that once it's in there the cash is belongs to your kids, not you, there is no access to it until they're 18 and then it's theirs to do whatever they want with. Now in an ideal world they'll be sensible with that money and put it towards their Uni fees, first house etc. but there's nothing to stop them blowing the lot on whatever take their fancy. Not all 18 year olds are sensible with money.
12 May 2014, 11:13 AM
#28
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18 May 2014, 10:50 AM
#29
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We have a Halifax Child ISA for our 3yo that pays 6% as long as we also have an adult ISA (that only needs to have a balance of 1 pound or more). DD adds a few quid every month. Hoping that we can convert the other lads CTF to one soon too.