How to invest £60k / Ten years for an Eight year old?
08 April 2005, 07:44 PM
#1
Guest
Posts: n/a
How to invest £60k / Ten years for an Eight year old?
Due to some sad circumstances a good friend of mines Eight year old daughter will be getting £60K. This will be invested in trust until she is 18. I'm pretty sure it could be doubled in Ten years, couldnt it?
What would be the best ways of investing it, obviously in a low-risk way.
I was thinking though,would it be clever to invest say £50k in a low risk way but take more risk (but potentially much higher gain) with the othter £10k?
Also, i'm thinking that it would be more prudent to make only say 20% of whatever the money has grown to available to the girl when 18 (to pay for Uni, moving out of home, car, big holiday etc) and the rest not until she is 21 when she'd be a lot more sensible and wise.
Thoughts?
What would be the best ways of investing it, obviously in a low-risk way.
I was thinking though,would it be clever to invest say £50k in a low risk way but take more risk (but potentially much higher gain) with the othter £10k?
Also, i'm thinking that it would be more prudent to make only say 20% of whatever the money has grown to available to the girl when 18 (to pay for Uni, moving out of home, car, big holiday etc) and the rest not until she is 21 when she'd be a lot more sensible and wise.
Thoughts?
08 April 2005, 09:08 PM
#3
Scooby Regular
Join Date: Feb 2001
Posts: 9,307
Likes: 0
Received 0 Likes
on
0 Posts
as above.....if possible to change at this stage.
i do loads of Wills and cant recall the last time a client went for less than 21.....and often 25 (with trustee discretion until then)
and talk to an IFA.......many decent funds should be able to double up in 10 years (7% net)
i do loads of Wills and cant recall the last time a client went for less than 21.....and often 25 (with trustee discretion until then)
and talk to an IFA.......many decent funds should be able to double up in 10 years (7% net)
08 April 2005, 09:11 PM
#4
Scooby Regular
Join Date: Jun 1998
Posts: 1,198
Likes: 0
Received 0 Likes
on
0 Posts
Over a 10-13 year period I think you can afford to me more adventurous than sticking 50k in some sort of low-risk account.
I'd look at a diversified portfolio of equity funds from one or two respected fund manager, and split the money between US, UK, European and Far Eastern funds. You can gradually start moving the money back into less volatile investments (bonds, national savings, high interest cash) after 8 years or so.
Another option given the length of time you are looking to invest - 60k would be a sizeable downpayment on a starter property. With the house market being slow, you could consider trying to pick up a buy-to-let if you could get a decent property for a good price over the next year or two. Presumably she will want to buy her own home at some point, and to have one largely fully paid for when she comes of age would be a great start to adult life.
Gary.
I'd look at a diversified portfolio of equity funds from one or two respected fund manager, and split the money between US, UK, European and Far Eastern funds. You can gradually start moving the money back into less volatile investments (bonds, national savings, high interest cash) after 8 years or so.
Another option given the length of time you are looking to invest - 60k would be a sizeable downpayment on a starter property. With the house market being slow, you could consider trying to pick up a buy-to-let if you could get a decent property for a good price over the next year or two. Presumably she will want to buy her own home at some point, and to have one largely fully paid for when she comes of age would be a great start to adult life.
Gary.
08 April 2005, 11:36 PM
#5
Scooby Regular
Join Date: Oct 1999
Posts: 256
Likes: 0
Received 0 Likes
on
0 Posts
I would reconsider giving it to her when she was 18.
My Sister knew someone who lost both her Parents when she was young. She didn't see a bit of the money until she was 30.
I would consider blue ckip shares or property.
My Sister knew someone who lost both her Parents when she was young. She didn't see a bit of the money until she was 30.
I would consider blue ckip shares or property.
10 April 2005, 05:42 PM
#6
You could consider a bond issued by an insurance company, but most of the funds are equity linked - so the investment would be medium to high risk.
Some companies (like Skandia) offer over 300 different funds - including Property funds that are less volatile than other funds, and one can switch between funds at no charge.
The bond could be written under trust for the child's benefit, and a Letter of Wishes could be drawn up which would give the trustees of the bond guidlines on how to advance cash to the child - a sort of safety net so that youngsters do not get given large amounts of money at too youn an age.
5% of the original investment can be taken out each tax year with no tax to pay, withdrawals not taken in one year can be carried forward to the next.
Low risk would be cash or cash equivalent - National Savings Premium Bonds for example.
Some companies (like Skandia) offer over 300 different funds - including Property funds that are less volatile than other funds, and one can switch between funds at no charge.
The bond could be written under trust for the child's benefit, and a Letter of Wishes could be drawn up which would give the trustees of the bond guidlines on how to advance cash to the child - a sort of safety net so that youngsters do not get given large amounts of money at too youn an age.
5% of the original investment can be taken out each tax year with no tax to pay, withdrawals not taken in one year can be carried forward to the next.
Low risk would be cash or cash equivalent - National Savings Premium Bonds for example.
Thread
Thread Starter
Forum
Replies
Last Post