Economic Godmother's & Godfather's

[AsleepInYorkshire]

We've made it.

Today is that last day of the ISA year and my daughter has 9K in cash in her Jisa.

I'm not going to sit and tell her what stocks or funds to invest in. I can go one better than that and advise her what I think.

But let's be honest my daughter deserves far better than just me advising her.

I've looked at a few prospects today

Gleeson
Persimmon
Bellway
Scottish Mortgage
Standard Life Small Companies Fund

On behalf of my daughter may I invite you to become a financial Godmother or Godfather and offer your thoughts.

It will cost £9.95 per trade for what she buys and I've put up £99.50 to pay for ten trades if needed.

Thank you TLF community. This is a huge responsibility I know, but I also want her to read any replies and begin to understand her abilities - she's got a lot to learn and whilst I don't expect her to understand everything I want her to work out her own limitations.

AiY(D)

[kempiejon]

Today is that last day of the ISA year and my daughter has 9K in cash in her Jisa.

Are you sure? We've a few days until the 4th April which is tax deadline day.

[AsleepInYorkshire]

Today is that last day of the ISA year and my daughter has 9K in cash in her Jisa.

Are you sure? We've a few days until the 4th April which is tax deadline day.

Hi,

Yes, sorry. The cash is in a Jisa. We're now looking to invest it in "equities".

AiY(D)

[mc2fool]

Today is that last day of the ISA year and my daughter has 9K in cash in her Jisa.

Are you sure? We've a few days until the 4th April which is tax deadline day.

The last day of the tax year is the 5th of April.

https://www.gov.uk/individual-savings-accounts/how-isas-work

[kempiejon]

Today is that last day of the ISA year and my daughter has 9K in cash in her Jisa.

Are you sure? We've a few days until the 4th April which is tax deadline day.

The last day of the tax year is the 5th of April.

https://www.gov.uk/individual-savings-accounts/how-isas-work

Doh!

Anyway how about a global tracker?

[AsleepInYorkshire]

Today is that last day of the ISA year and my daughter has 9K in cash in her Jisa.

Are you sure? We've a few days until the 4th April which is tax deadline day.

The last day of the tax year is the 5th of April.

https://www.gov.uk/individual-savings-accounts/how-isas-work

Doh!

Anyway how about a global tracker?

Thank you. Yes that's a very good idea. I'd not thought of that as an option

AiY(D)

[Itsallaguess]

On behalf of my daughter may I invite you to become a financial Godmother or Godfather and offer your thoughts.

I'd put the bulk of it in -

HSBC FTSE All World Index Class C - Accumulation -

https://www.morningstar.co.uk/uk/funds/snapshot/snapshot.aspx?id=F00000TXY8

You've not said which platform she's got the JISA with, so you should check any ongoing platform charges that might be related to holding funds, but assuming they are acceptable, then having the bulk of a long-term investment in something like the above will put her in good stead over the years, and perhaps still allow a little 'play money' for some single-stock purchases so that she gets a good handle on both single-stock and broadly-diversified fund volatility over the years ahead.

You've not said if there are any monthly account charges, or how you're planning on funding those going forward if there are any. If there are ongoing platform charges that are low enough to perhaps be 'self-funded' by a potential holding that regularly pays out dividends, then something like -

FTSE All-World High Dividend Yield UCITS ETF (VHYL) -

https://www.vanguardinvestor.co.uk/investments/vanguard-ftse-all-world-high-dividend-yield-ucits-etf-usd-distributing/distributions

might help with paying any ongoing account charges if there are any, and the above is again a very broadly diversified, global fund.

I'd recommend not putting the whole 9k into single-stocks - stick to broadly diversified, global funds, with a small allocation for 'play money', but only if there's a particular itch to scratch in that area...

Cheers,

Itsallaguess

[AsleepInYorkshire]

On behalf of my daughter may I invite you to become a financial Godmother or Godfather and offer your thoughts.

I'd put the bulk of it in -

HSBC FTSE All World Index Class C - Accumulation -

https://www.morningstar.co.uk/uk/funds/snapshot/snapshot.aspx?id=F00000TXY8

You've not said which platform she's got the JISA with, so you should check any ongoing platform charges that might be related to holding funds, but assuming they are acceptable, then having the bulk of a long-term investment in something like the above will put her in good stead over the years, and perhaps still allow a little 'play money' for some single-stock purchases so that she gets a good handle on both single-stock and broadly-diversified fund volatility over the years ahead.

You've not said if there are any monthly account charges, or how you're planning on funding those going forward if there are any. If there are ongoing platform charges that are low enough to perhaps be 'self-funded' by a potential holding that regularly pays out dividends, then something like -

FTSE All-World High Dividend Yield UCITS ETF (VHYL) -

https://www.vanguardinvestor.co.uk/investments/vanguard-ftse-all-world-high-dividend-yield-ucits-etf-usd-distributing/distributions

might help with paying any ongoing account charges if there are any, and the above is again a very broadly diversified, global fund.

I'd recommend not putting the whole 9k into single-stocks - stick to broadly diversified, global funds, with a small allocation for 'play money', but only if there's a particular itch to scratch in that area...

Cheers,

Itsallaguess

Hi IAAG,

Thank you for your thoughts. The JISA is with AJ Bell. We are putting £9K per annum into it for her until she's 18. There's definitely no itch to scratch on her part - but I'm aware that she needs to develop her own style of financial management, which is the essence of my opening post. Hearing other people's suggestions will allow her to get a much broader understanding of investing which will be far better than just listening to Dad's narrow thoughts

Again thank you, greatly appreciate your response

AiY(D)

[Itsallaguess]

The JISA is with AJ Bell.

We are putting £9K per annum into it for her until she's 18.

It looks like account charges for anything that's not 'single-stock' will be 0.25% of portfolio value then, up to a maximum of £2.50 per month where ETF's or Investment Trusts might be held -

https://www.youinvest.co.uk/investing-for-children/charges-and-rates

That's a good situation for her to be in with regards to being able to hold diversified investments like that relatively cheaply then, so good news.

I've got a Junior ISA with AJ Bell for my son, and we've been very happy with it, and we're heading down the same route for him as my recommendations listed earlier in the thread.

Cheers,

Itsallaguess

[dealtn]

On behalf of my daughter may I invite you to become a financial Godmother or Godfather and offer your thoughts.

I would let her make her own decisions.

For me the value of experience, and the education and learning the good and bad from those decisions in the long run, outweighs the financial difference in outcomes between other people's choices. I know you have the best of intentions in asking though.

Consider the £9k as a very cheap education budget (and she is unlikely to spend all, or perhaps any, of it).

[Itsallaguess]

I would let her make her own decisions.

I assumed from the opening post that she was going to make her own decisions -

"I'm not going to sit and tell her what stocks or funds to invest in."

https://www.lemonfool.co.uk/viewtopic.php?f=8&t=33901

I just thought this thread was intended to be part of that learning experience, where she could read other people's views outside of the well-intended orbit of parenthood, that's all, and I think that's a reasonable half-way-house between 'Do as I say' and 'Do as you like with no guidance at all'....

Cheers,

Itsallaguess

[gryffron]

Whilst I agree a world tracker is most practical. If this is for use as a learning experience then get her to think about the sort of things SHE buys and buy her some shares in a couple of HER favourite company(s). I've no idea what she's interested in but for instance: Matalan, Apple, MacDonalds...

For learning about shares and investing, a handful of individual companies is much more enlightening and interesting than a world tracker. Have they gone up? Why? Have they gone down? Why? Are they doing better or worse than the World Tracker you bought as a baseline?

BTW: I'm not for a moment suggesting this will be "better" investment-wise than your choices. But as dealtn says, £9k is a cheap lesson. And buying something she is interested in is much more likely to lead to conversations about her investments than companies she has never heard of.

Gryff

[tjh290633]

My choice for her would be FCIT. It is what I would have invested in when I started, had I known what I know now.

TJH

[Bagger46]

A couple which spring to mind for her would be Foreign and Colonial FCIT or Brunner,BUT. ie an IT generalist invested mostly for long term growth.

Bagger

PS Disc: My wife (who essentially only invests in ITs) has had holdings in both for a very long time, occasionally topped up only when markets tank and things look dire, as is her habit, she is extremely patient as an investor. Very unlikely she will consider selling them whatever markets might do.

[OldPlodder]

Our three children's first investments were, respectively: Apple, FCIT and EQQQ. They have had these for quite a while, no plans to sell these holdings that I know of.

Plodder

[kempiejon]

It will cost £9.95 per trade for what she buys and I've put up £99.50 to pay for ten trades if needed.

AiY(D)

Here's perhaps a good lesson, check for costs, I have an AJB ISA and usually use their monthly pooled investment day where one can buy for £1.50.
From what I've gleaned looking at their t&c it appears to apply to the JISA too but please check.
https://www.youinvest.co.uk/investing-f ... junior-isa

Buy and sell investments from just £1.50

[monabri]

HSBC C Acc 3k
VHYL 2k
FCIT 2k
SMT 2k

£50 residual fees to go out/ towards a meal with the Yorkshire clan.. ( wot, no change?)

[Itsallaguess]

I'm coming round to the idea that at least some level of investment in F&C Investment Trust (FCIT) might go some way to deliver for some of the more 'direct interest' aspect that a few people have quite rightly raised.

With a top 10 holdings list that contains Microsoft, Amazon, Apple and Alphabet, it perhaps might help to provide a more direct level of stimulus for at least some of the JISA funds, over and above some of the much more diluted world-tracker funds.

Taking a look at the AIC 'Portfolio' page for FCIT would also provide a good opportunity to specifically discuss things like broad diversity of underlying holdings, industry diversity, and also geographical diversity with regards to investment as well -

https://www.theaic.co.uk/companydata/0P00000WHD/portfolio

And with it providing a 1.5% yield, it might go some way to self-fund the low-level AJ Bell account charges over the years, and the icing on the cake might be seen as the current 9.34% discount to underlying net-asset value (NAV), so also a good opportunity to cover what that means as well, and why buying diversified Investment Trusts at a discount can sometimes offer up some good opportunities -



Source - FCIT Overview page - https://www.theaic.co.uk/companydata/0P00000WHD

Cheers,

Itsallaguess (owns FCIT)

[LooseCannon101]

My choice for her would be FCIT. It is what I would have invested in when I started, had I known what I know now.

TJH

I think F&C Investment Trust (FCIT) is great so long as your daughter can re-invest dividends and hold forever.

The regulatory news, and monthly and annual reports are an education in themselves, plus the annual general meeting (AGM) and other meetings held in central London give an insight into minds of other investors. The AGM is coming up soon - well worth a visit.

I hold my shares using the excellent BMO Saving Scheme (ISA - £72 per annum). It might be more complicated holding FCIT through a discount broker if one wishes to attend the AGM.

[tjh290633]

My choice for her would be FCIT. It is what I would have invested in when I started, had I known what I know now.

TJH

I think F&C Investment Trust (FCIT) is great so long as your daughter can re-invest dividends and hold forever.

The regulatory news, and monthly and annual reports are an education in themselves, plus the annual general meeting (AGM) and other meetings held in central London give an insight into minds of other investors. The AGM is coming up soon - well worth a visit.

I hold my shares using the excellent BMO Saving Scheme (ISA - £72 per annum). It might be more complicated holding FCIT through a discount broker if one wishes to attend the AGM.

I would agree with that. However the BMO ISA only lets you invest in their own products. I have used their Junior Investment Account for two of my grandchildren's bare trusts, investing in FCIT. The other two are in Witan and Alliance Trust respectively, now with Hargreaves Lansdown and Interactive Investor.

TJH