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Junior ISA

Stocks and Shares ISA , Choosing funds for ISA's, risk factors for funds etc
Investment strategy discussions not dealt with elsewhere.
AsleepInYorkshire
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Junior ISA

#239598

Postby AsleepInYorkshire » July 26th, 2019, 10:03 pm

My very old daughter is only 12 :roll:

She's just completed her first year at secondary school. She has done very well. Well if I can say - she's smashed it out of the park. There is no parental pressure. Plenty of support and encouragement and the odd reminder of how fortunate she is to have an opportunity to access a good education.

We are going to start putting some money into a Junior ISA for her starting in September. It will be £100/month. The money will be available to her when she is 18 to use as she wants. So she could use it as a deposit on a car or towards her University costs for example.

Where should we invest it?

AiY

TUK020
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Re: Junior ISA

#239635

Postby TUK020 » July 27th, 2019, 8:39 am

AiY,
I am going to comment on a slightly different point, which may have bearing on your investment choice.
You have posed the question in a way which implies the investment time horizon is 6 years, for use in car/uni costs.

I have done something slightly different with my (somewhat older) kids. I have explained to them that I am continuing to fund their ISA (formerly junior ISAs) for as long as I can afford it, and on the condition that they do not touch the pot.
My intent is to give them a deposit for when they want to buy a house. But they have a one time pot that they can use for any life changing purpose that they want - start a business, blow it on a wedding party, deposit for a house, pay off uni debt.
They have all requested that I keep it going, that I keep managing it, and state that their intent is to use it for house purchase eventually.

This also means that I am investing on their behalf for a longer time horizon - already been going for 6-7 years, and I suspect that it will go for at least as long again (mine are aged 19-23). Therefore I have it mostly invested in stocks - primarily ITs.

Buying a car is something that they can manage at 18 by getting a summer job (OK, not a very fancy one). Getting on the property ladder represents a much bigger challenge to youngsters today.
tuk020

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Re: Junior ISA

#239692

Postby BusyBumbleBee » July 27th, 2019, 12:08 pm

TUK020 wrote:I have done something slightly different with my (somewhat older) kids. I have explained to them that I am continuing to fund their ISA (formerly junior ISAs) for as long as I can afford it, and on the condition that they do not touch the pot.
My intent is to give them a deposit for when they want to buy a house. But they have a one time pot that they can use for any life changing purpose that they want - start a business, blow it on a wedding party, deposit for a house, pay off uni debt.
They have all requested that I keep it going, that I keep managing it, and state that their intent is to use it for house purchase eventually.

This also means that I am investing on their behalf for a longer time horizon - already been going for 6-7 years, and I suspect that it will go for at least as long again (mine are aged 19-23). Therefore I have it mostly invested in stocks - primarily ITs.

Buying a car is something that they can manage at 18 by getting a summer job (OK, not a very fancy one). Getting on the property ladder represents a much bigger challenge to youngsters today.
tuk020

Very good post TUK020 - We have done much the same but are now concentrating on pensions for our grandchildren. These cannot be touched until they are much older but it will cut down their costs in the early years and they can concentrate on doing what young people have to do using the money they would otherwise have put into their pensions.

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Re: Junior ISA

#239705

Postby Urbandreamer » July 27th, 2019, 12:49 pm

AsleepInYorkshire wrote:My very old daughter is only 12 :roll:

She's just completed her first year at secondary school. She has done very well. Well if I can say - she's smashed it out of the park. There is no parental pressure. Plenty of support and encouragement and the odd reminder of how fortunate she is to have an opportunity to access a good education.

We are going to start putting some money into a Junior ISA for her starting in September. It will be £100/month. The money will be available to her when she is 18 to use as she wants. So she could use it as a deposit on a car or towards her University costs for example.

Where should we invest it?

AiY


Well, it depends upon your intentions.

I opened up JISA's for my two youngest a couple of years ago. My intention was to get them interested in investment. Sure it could help with University costs, however we set up bare trusts for that when they were younger.
The results were somewhat mixed. The elder (now 18) was impressed with how SMT performed. She sat on cash in the account because she couldn't decide what to buy, but eventually invested that in Asociated British Foods*.

Her brother (now 15) is not in the slightest bit interested. He shares the same SMT investment, but we bought shares in Frontier Developments*. He's not interested in the gains on SMT or the losses on Frontier.

If your intention is simply to put money aside for University, then a simple ETF or index tracker might be more appropriate. It's less work and lower risk. If however you want her to be interested then you need to help her find companies that she can identify with. Not sure that they are a good investment, but what about shares in Warpaint :twisted:

*Son is interested in computer games, daughter in sugar :?: well actually clothes (Primark is owned by ABF).

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Re: Junior ISA

#239731

Postby tjh290633 » July 27th, 2019, 2:33 pm

AsleepInYorkshire wrote:My very old daughter is only 12 :roll:

She's just completed her first year at secondary school. She has done very well. Well if I can say - she's smashed it out of the park. There is no parental pressure. Plenty of support and encouragement and the odd reminder of how fortunate she is to have an opportunity to access a good education.

We are going to start putting some money into a Junior ISA for her starting in September. It will be £100/month. The money will be available to her when she is 18 to use as she wants. So she could use it as a deposit on a car or towards her University costs for example.

Where should we invest it?

AiY

For my grandchildren, the investments that I make on their behalf have been in Witan, F&C and Alliance trusts. All three have been giving over 10% per annum total return. I doubt that you can do much better.

TJH

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Re: Junior ISA

#239806

Postby monabri » July 27th, 2019, 6:42 pm

I was curious as to how the various trusts (Witan, F&C , Alliance) compared to Vanguard's All World tracker on a total returns basis.

WTAN = Witan
FCIT = F& C Investment Trust
ATST = Alliance
VWRL = Vanguard

Image

Over the last 5 years, FCIT and ATST are currently showing the higher total return but VWRL, the cheap tracker, is performing slightly better than WTAN.

What also struck me was the period of "Non performance" for the first two years. Has some of the total return simply been due to share price growth as a result of a weak Sterling ? It is a pity that the Hargreaves Lansdown "comparator" tool only allows for the last 5 years as a window for comparison.


HL Comparator Tool - link

https://www.hl.co.uk/funds/fund-discoun ... ion/charts

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Re: Junior ISA

#239814

Postby Urbandreamer » July 27th, 2019, 7:40 pm

[url][/url]
monabri wrote:I was curious as to how the various trusts (Witan, F&C , Alliance) compared to Vanguard's All World tracker on a total returns basis.

..
Over the last 5 years, FCIT and ATST are currently showing the higher total return but VWRL, the cheap tracker, is performing slightly better than WTAN.

What also struck me was the period of "Non performance" for the first two years. Has some of the total return simply been due to share price growth as a result of a weak Sterling ? It is a pity that the Hargreaves Lansdown "comparator" tool only allows for the last 5 years as a window for comparison.


HL Comparator Tool - link

https://www.hl.co.uk/funds/fund-discoun ... ion/charts


To be fair I know that you are responding to TJH's off the cuff "I doubt that you could do better", but did you try the comparison to SMT?

In truth I don't think TJH's suggestions are bad at all. Not what I would choose, but then again, less risky than I would choose. Each to their own.
Morningstar will look over a longer time period if you are interested.
http://www.morningstar.co.uk/uk/etf/sna ... entType=FE

I'm afraid that I can't do your image link stuff and that link only shows VWRL until you add something to compare against.

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Re: Junior ISA

#239826

Postby monabri » July 27th, 2019, 8:40 pm

Urbandreamer wrote:
To be fair I know that you are responding to TJH's off the cuff "I doubt that you could do better", but did you try the comparison to SMT?

In truth I don't think TJH's suggestions are bad at all. Not what I would choose, but then again, less risky than I would choose. Each to their own.
Morningstar will look over a longer time period if you are interested.
http://www.morningstar.co.uk/uk/etf/sna ... entType=FE




Thanks for the info re Morningstar. What I was really highlighting was how well a simple global tracker had performed.

( I did confine the comparison to WTAN, FCIT & ATST).

AsleepInYorkshire
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Re: Junior ISA

#239832

Postby AsleepInYorkshire » July 27th, 2019, 8:59 pm

I hope you don't mind if I reply to everyone. Thank you all for finding the time to respond. Very kind indeed and I am grateful.

I'm genuinely not sure how to reply. I was a little misleading about the purpose of the ISA when I said it was towards a car. I want her to understand from an early age about compound interest and feel the benefits of saving directly. For her 11th Birthday I arranged for her to have a bank account and a debit card. She gets a very small allowance every month and she's learned how to use her debit card and has bought two or three items of clothing and birthday presents for her friends. What I've noticed is she's very careful with this money. She gets a little bit of pocket money off Grandma and tries not to spend her allowance. She's saved more than 50% of her allowance to date. Most of the rest has gone on Birthday and Christmas presents for Mum & Dad and her friends. I've given her no advice on how to spend her money unless she's asked for it.

Naturally I am very proud of the maturity and sense she has shown.

Earlier this year we went to her first secondary parents evening. I have become quite accustomed to her teachers speaking very highly of her social skills and her likeability factor. I can't say she's a chip off the old block :roll: . She was performing well at that point but was frustrated with one or two of the marks she received. They weren't even close to failing. They just weren't good enough for her.

I told her what she could do about it. And she did what she does best. She listened and took it all on board and returned some very robust marks at the end of her first year. A top mark is a 5. Often a 4 is all a child can achieve because the teacher will simply not issue 5's. A 3 is acceptable. Out of 20 available marks she managed to get 11 at five. The remaining 9 were 4's. She could not have done any better in my opinion. She's worked hard at subjects she's struggled with and overcome through dogged determination. She's developing tenacity and is beginning to understand she can achieve what she sets her mind to it.

Of course I am biased. What makes her accomplishment that little bit more special is she has been dealing with a diagnosis of CFS after a bout of glandular fever last year. She is active outside of school and is learning keyboard skills, ice skating and she still goes swimming once a week.

She has one chore. She fills and empties the dishwasher. I've issued her with a 2 :roll:

I'm sure there are many different strategies we can use as parents. My choice has been to try and show her the rewards available for working hard and achieving the best results she's capable of. The only person she's competing with is herself. However, one day in the not to distant future she will be competing for a job or a position at a university or college. I'm hoping that by the time she arrives at that point she will have done enough to give herself the opportunity she wants to take.

I've digressed, or if you prefer, rambled :shock: Hopefully for a reason. Whilst I have mentioned I don't apply pressure I do incentivise her. As one part of that and if she shows the same response to her junior ISA as her allowance I will increase the ISA payments once a year after she has received her end of year report. She's been told her ISA will be hers to use as she sees fit at age 18. But she has also been told that if she's goes to university she cannot expect us to pay vast amounts to support her. She will have to consider finding part time work in between her studies and behaving modestly with regard to her spending habits. The latter she is already proving to be able to do very well. The former - well please refer to my mark regarding her efforts with the dishwasher :roll:

I have had some really bad luck with my health as I mention way too often :shock: . Tonight I completed my feasibility spreadsheet which sets out a plan to be able to recover the shortfall in my pension due to health issues. I've mentioned this for two reasons. The first is I'm acutely aware that my daughter has a 50/50 of developing my condition. My symptoms began to manifest at around her age now. Secondly I want her to have a far less complicated life than me. Filled with happiness and secured with self confidence and some robust life skills. I'd like her to have the life I missed. Of course there will be some bumps on her journey. I genuinely feel fortunate to be able to be in a place to recover my pension shortfall. If I have got my numbers right I will be able to leave at least the family home to my daughter on our passing. I am reasonably confident that I have also covered any potential costs associated with our "care" and the house should not be lost in these costs, should they occur. I hope no one feels I am speaking out place. As I've said my life has to date has been one episode of continual health problems and all the associated "bad luck" that comes with that. I'm now, hopefully, able to turn that around. I think at maximum I have about 10 years left before I can retire. The feasibility spreadsheet seems to support that. Of course much can still go wrong. I've built in some contingency to deal with set-backs.

In the meantime I've been looking at various Junior ISA's available. It will take me a few weeks to finalise the one I feel will be the best fit.

I am genuinely and sincerely grateful for the thoughts and advice you have all offered. Thank you

AiY

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Re: Junior ISA

#239838

Postby genou » July 27th, 2019, 9:40 pm

AsleepInYorkshire wrote:She gets a very small allowance every month
AiY

I've highlighted one small issue. You seem to be doing things right, for a bright child. Increase the allowance and teach her to budget now. Both mine got allowances from starting secondary on the basis that they were responsible for choosing what to spend - not everything, we did discuss what they wanted control of and what we were willing to cede. The basics - uniform /shoes / school bus etc are out of her control and not in the allowance; pretty much everything else is up for grabs - see what she says. Obviously the overall budget is in your gift, but if you go this way she will learn to prioritise.

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Re: Junior ISA

#239840

Postby Urbandreamer » July 27th, 2019, 10:01 pm

AsleepInYorkshire wrote:I hope you don't mind if I reply to everyone. Thank you all for finding the time to respond. Very kind indeed and I am grateful.

I'm genuinely not sure how to reply. I was a little misleading about the purpose of the ISA when I said it was towards a car....

AiY


Not a problem, but it obviously makes it more difficult for any of us to offer meaningfull suggestions. Personally I find researching and picking investments a great joy. Others simply look for a trade off between effort and results. Hence the perfectly valid arguments for an index tracker.

What do you think your daughter would like?

Is she interested in money to spend, an adventure, saving the planet, or more Dysney princesses?

She, with your contribution, can be involved in any of the above.

It's a lot more risky, but I have shares in companies who make medical immaging equipment, save huge numbers of lives through such simple stuff as soap and who generate electricity from the wind. Others invest in companies who improve farming livestock or companies who try to replace the need for animals for burgers!

I wasn't joking when I pointed out that Dysney shares are traded on the market! He may be geriatric but that mouse still makes money and the company behind him still produces films that get watched.

What sort of investment journey do you think that she would enjoy?

I do have to say, when I told my daughter about this thread she described telling her friends in the pub that she had bought ABF, or shares in Primark. The one who worked at Primark exclaimed "Caz owns Primark"! Priceless.

That said what really got her attention was how well SMT performed since I bought them for her. Let me be as honest as I was when I bought them for her, they are HIGH RISK! They seem to have done well for quite some time, BUT THEY ARE HIGH RISK! Also she was old enough to have an allowance and be interested in money. The idea of buying something and it becoming more valuable was something of an eye opener for her.

The same may not be true of a 12 yearold. It certainly wasn't for my (then) 13 yearold son.

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Re: Junior ISA

#239842

Postby AsleepInYorkshire » July 27th, 2019, 10:13 pm

genou wrote:
AsleepInYorkshire wrote:She gets a very small allowance every month
AiY

I've highlighted one small issue. You seem to be doing things right, for a bright child. Increase the allowance and teach her to budget now. Both mine got allowances from starting secondary on the basis that they were responsible for choosing what to spend - not everything, we did discuss what they wanted control of and what we were willing to cede. The basics - uniform /shoes / school bus etc are out of her control and not in the allowance; pretty much everything else is up for grabs - see what she says. Obviously the overall budget is in your gift, but if you go this way she will learn to prioritise.

Hi genou. Thank you for your advice which I hasten to add I completely agree with. Can I fess up a little further please. I felt that my last post may be perceived as "bragging". I know some are not as fortunate as I am and cannot afford to be as materialistically generous. And of course I only have to do it for one child which dependent upon your point of view either halves the cost or doubles the reward. I did say in my last post "As one part of that and if she shows the same response to her junior ISA as her allowance I will increase the ISA payments once a year". There were two other parts. The first was a very modest increase in her allowance to £60/month. The other was a benchmarked reward related to her results. That effectively doubles her annual allowance. Can I just talk a little further about her please. She is extremely competitive. I don't know where she gets it from as we do not push her to compete with anyone other than herself. By way of example. I collected her from Grandma's one afternoon after work. When we got in the car she told me she thought I would be very proud of her. Upon asking why she told me her maths teacher had made a new grade just for her. It was for her last piece of homework. She got a 5*. She was sat next to a friend who had also received a new grade for her homework. She got a 5**. The next homework she did she chose not to answer two out five questions but sat up whilst 10.30pm and answered two more. I don't want to influence her when she makes decisions like that as they are her judgement call. She clearly wanted a 5** mark and was prepared to try and earn it. It wasn't forthcoming.

I haven't discussed with her how much financial independence she wants to be given. She's aware she can talk to me about anything. I draw the line at nail and make up though :roll:. I think you are probably right and I should broach the subject with her and see how confident she feels about it. And I certainly agree with you that it will give her another great life skill in learning how to prioritise where the money goes. She's very sensible with her clothes and buys what she needs, not what she wants.

Again thank you, I am grateful for the heads up

AiY

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Re: Junior ISA

#239849

Postby AsleepInYorkshire » July 27th, 2019, 10:53 pm

Urbandreamer wrote:
AsleepInYorkshire wrote:I hope you don't mind if I reply to everyone. Thank you all for finding the time to respond. Very kind indeed and I am grateful.

I'm genuinely not sure how to reply. I was a little misleading about the purpose of the ISA when I said it was towards a car....

AiY


Not a problem, but it obviously makes it more difficult for any of us to offer meaningfull suggestions. Personally I find researching and picking investments a great joy. Others simply look for a trade off between effort and results. Hence the perfectly valid arguments for an index tracker.

What do you think your daughter would like?

Is she interested in money to spend, an adventure, saving the planet, or more Dysney princesses?

She, with your contribution, can be involved in any of the above.

It's a lot more risky, but I have shares in companies who make medical immaging equipment, save huge numbers of lives through such simple stuff as soap and who generate electricity from the wind. Others invest in companies who improve farming livestock or companies who try to replace the need for animals for burgers!

I wasn't joking when I pointed out that Dysney shares are traded on the market! He may be geriatric but that mouse still makes money and the company behind him still produces films that get watched.

What sort of investment journey do you think that she would enjoy?

I do have to say, when I told my daughter about this thread she described telling her friends in the pub that she had bought ABF, or shares in Primark. The one who worked at Primark exclaimed "Caz owns Primark"! Priceless.

That said what really got her attention was how well SMT performed since I bought them for her. Let me be as honest as I was when I bought them for her, they are HIGH RISK! They seem to have done well for quite some time, BUT THEY ARE HIGH RISK! Also she was old enough to have an allowance and be interested in money. The idea of buying something and it becoming more valuable was something of an eye opener for her.

The same may not be true of a 12 year old. It certainly wasn't for my (then) 13 year old son.

She's not a typical 12 year old. We're "older" parents and of course she's a reflection of that. She does have an old head on her shoulders. I've always encouraged her to have lots of friends. She does. I've also turned one of our "spare"bedrooms into a study come lounge for her. She has a full size desk, a sofa and a tv. She does spend most of her time in there. But whenever her friends come round for sleep-overs they can sit upstairs in their own company and socialise, watch tv, eat popcorn and generally relax as themselves. It's a calm room and allows her to do her homework in a peaceful environment.

I have absolutely no idea what stock or fund she would be interested in. She's no yet capable of understanding the dynamics of buying a single company stock. I suspect I will suggest more of a fund purchase. I am not sure she could cope with a high risk stock/fund where volatility was high. I think she would understand "dividends" though so I may see what's on offer there. She left princesses behind her many years ago and I think even unicorns have now been banished to myth. She's risk averse overall and quite balanced, not leaning to anything more than others. She reads a lot but only over specific authors and subjects. I'll speak with her and see if I can find out what may interest her. I will mention Primark and see what response I get.

AiY

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Re: Junior ISA

#239932

Postby BusyBumbleBee » July 28th, 2019, 2:35 pm

Among the many things by AsleepInYorkshire was
AsleepInYorkshire wrote:I felt that my last post may be perceived as "bragging".AiY
I for one did not take it that way. What a delight to hear of other children doing well.

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Re: Junior ISA

#239934

Postby TUK020 » July 28th, 2019, 2:40 pm

AsleepInYorkshire wrote:I felt that my last post may be perceived as "bragging".AiY

The phrase "justifiably proud" comes to mind

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Re: Junior ISA

#240223

Postby Bouleversee » July 29th, 2019, 4:08 pm

AiY -

Your daughter sounds very similar to my youngest granddaughter (12 last Sat), who was in tears because she didn't think she had done very well in her English exam. She was right, only 78% compared with 100% in Mandarin and I forget the other subject, and nearly full marks for everything else; top of her year in exams and joint first in the school for achievement, resulting in an academic scholarship in addition to the Arts scholarship she was awarde when entering the school. Again, no pressure from parents; all comes from inside which is good in one way but slightly worrying in another. She is also good at music and drama and in the lacrosse team and I expect your daughter also has lots of other interests. Is there any point in bothering her with financial matters on top of all that, especially when she already seems to have the right attitude to money and saves, as does my g.d?

My late husband and I started investing for our children when they were quite small, using bare trusts into which we would transfer some of our certificated shares, using our cgt allowances without incurring costs. (No junior ISAs in those days and we did have a good stockbroker initially.) As a result, by the time they got to 18 they had a reasonable sum to which they were legally entitled but never handled and it never occurred to them to ask for it. After university, with jobs in London, they bought flats in Chiswick and their shares produced sufficient for a decent deposit. They weren't even aware that we had given them the shares till they were 18 as we didn't want them to grow up feeling they didn't need to work hard. After that, we started contributing into ISAs for them and hoped they would learn to manage them themselves. We handed over her records to the eldest, only to find that she made no attempt to invest the money or inform herself; much too busy enjoying life and working hard, so we (now I) continued to manage both ISAs. Big mistake. To be fair, with Brexit hanging over us for the past few years, even I don't know what to do for the best and have for the first time in my life had an increasingly large sum sitting in my ISAs doing nothing. We have seen the utilities and other what we thought safe investments plummet under the threat of nationalisation and severe regulation, retail companies in dire straits with knock-on effects on their landlords, oil companies under threat, supermarkets undersold by Lidl and Aldi, mining companies up and down like yo-yos, etc., etc.
We have no idea what an election outcome will be, especially if Corbyn is replaced which I feel sure would happen and Boris fails to make any headway with the EU.

My advice is to invest her money in ITs, starting with a global index fund (don't ask me which one as I have still to find that out for myself), and tell her to do the same. (I must visit the IT board). I am not making much progress in transferring the existing shares to ITs but SMT have done quite well since I bought and topped up (I don't think it's any more risky than most equities) and some others are picking up. My children now hold Witan, F&C and a few more, some not better than others. I have never invested on a monthly basis so don't know the economics of that. I don't think most children will be interested in equity investment (even the great Lord John Lee failed to involve his daughters and is still managing their ISAs) so don't overcomplicate things by buying small holdings of individual shares. Find a platform which offers Junior ISAs which permit small sums to be regularly invested without excessive charges. If you have already done so, I'd be interested to know which as I want to get my children to set up Junior ISAs for their sprogs to which I can contribute. So far, I have been doing the same for them as I did for my own children initially but I am running out of certificated shares as well as time and energy and would just like to hand over cash asap and forget.

Your daughter is clearly very bright and if she continues to do as well (without getting too distracted by studying the stockmarket), she will be earning enough, added to the pot you have invested for her, to get a mortgage and onto the property ladder at an early age. That is the most important hurdle, a much bigger one than when my children were young. I advise you to forget about the car; the insurance for young drivers is astronomic, for a good reason. You could buy her a good book on investment when she graduates with lst class honours, as I feel sure she will.

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Re: Junior ISA

#240230

Postby Urbandreamer » July 29th, 2019, 4:31 pm

Bouleversee wrote:We have seen the utilities and other what we thought safe investments plummet under the threat of nationalisation and severe regulation, retail companies in dire straits with knock-on effects on their landlords, oil companies under threat, supermarkets undersold by Lidl and Aldi, mining companies up and down like yo-yos, etc., etc.
We have no idea what an election outcome will be, especially if Corbyn is replaced which I feel sure would happen and Boris fails to make any headway with the EU.

My advice is to invest her money in ITs, starting with a global index fund (don't ask me which one as I have still to find that out for myself), and tell her to do the same. (I must visit the IT board). I am not making much progress in transferring the existing shares to ITs but SMT have done quite well since I bought and topped up (I don't think it's any more risky than most equities) and some others are picking up.


Sorry, I feel that I need to explain my comment about SMT being high risk. As an IT, it is. It has few holdings and very significant investments in a couple of them. However it isn't as risky as just investing in a single company. Also the managers seem to have their eye upon the ball so to speak.

If you do want a global Behemoth IT with a long (48 year) history of increasing dividends then can I suggest FCIT.

The only other comment that I would make is that I question if there really is such a thing as a "safe investment". One advantage of a tracker is that it will replace companies whoes fortunes are on the wain with ones that are growing, automatically. The alternative is either to manage the process yourself or to pick a manager (or more than one) to do it for you.

Bouleversee
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Re: Junior ISA

#240232

Postby Bouleversee » July 29th, 2019, 4:41 pm

Urbandreamer wrote:
Bouleversee wrote:We have seen the utilities and other what we thought safe investments plummet under the threat of nationalisation and severe regulation, retail companies in dire straits with knock-on effects on their landlords, oil companies under threat, supermarkets undersold by Lidl and Aldi, mining companies up and down like yo-yos, etc., etc.
We have no idea what an election outcome will be, especially if Corbyn is replaced which I feel sure would happen and Boris fails to make any headway with the EU.

My advice is to invest her money in ITs, starting with a global index fund (don't ask me which one as I have still to find that out for myself), and tell her to do the same. (I must visit the IT board). I am not making much progress in transferring the existing shares to ITs but SMT have done quite well since I bought and topped up (I don't think it's any more risky than most equities) and some others are picking up.


Sorry, I feel that I need to explain my comment about SMT being high risk. As an IT, it is. It has few holdings and very significant investments in a couple of them. However it isn't as risky as just investing in a single company. Also the managers seem to have their eye upon the ball so to speak.

If you do want a global Behemoth IT with a long (48 year) history of increasing dividends then can I suggest FCIT.

The only other comment that I would make is that I question if there really is such a thing as a "safe investment". One advantage of a tracker is that it will replace companies whoes fortunes are on the wain with ones that are growing, automatically. The alternative is either to manage the process yourself or to pick a manager (or more than one) to do it for you.


Thanks. No, there is no risk free investment. I meant to say Global Index Tracker which might not be an IT but haven't investigated them yet. Must get on with it.

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Re: Junior ISA

#240233

Postby kempiejon » July 29th, 2019, 4:47 pm

Bouleversee wrote: -- Global Index Tracker but haven't investigated them yet. Must get on with it.


I have suggested to a few people to check the vanguard world ETF VWRL as a starting place if looking for a global tracker. I too think SMT is a focused IT. Discussions of the Vanguard stable and global replication does come up on other boards now and again.

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Re: Junior ISA

#240258

Postby Bouleversee » July 29th, 2019, 6:02 pm

Thanks. Will have a look.


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