To ask for help with financial pickle

[ShoebillStork]

In 2009 FIL had a win on the Premium Bonds. He gave us £10,000 to invest for DS (at low risk) and the money to be given to DS when he's 18.

I put the money towards a loft conversion. DS is 18 soon and I'm due to remortgage for a better rate. How much do I need to release for him so he gets the £10k plus what it might have gained in interest since 2009.

And should I encourage DS to get a Help to Buy ISA with it?

Actually make that £20k just to be sure he's not lost our....

"can barely spell, but apparently our courts are quite hot on breaches of fiduciary duty when there is fraud. Something to do with being one of the most trusted financial locations around the world (despite our tax regime) and indeed even the americans hold significant propertions of their billions in the uk, because of our laws, and why so many family banks locate here. 3,500+. *"
*
Wow OP - look at you, bringing the British financial sector to its knees single handed!

L😂 😂 😂

This thread is just bonkers!

If you wish to test it, PM me your name and address and i will make the crime report

ok - will do, I'll hide in DS's loft when the rozzers come a-knocking!

@RLABC

This thread is just bonkers!

Ya think?

@ChequerBoard

"can barely spell, but apparently our courts are quite hot on breaches of fiduciary duty when there is fraud. Something to do with being one of the most trusted financial locations around the world (despite our tax regime) and indeed even the americans hold significant propertions of their billions in the uk, because of our laws, and why so many family banks locate here. 3,500+. *" * Wow OP - look at you, bringing the British financial sector to its knees single handed!

L😂 😂 😂

hahahaahahah!

@ShoebillStork

If you wish to test it, PM me your name and address and i will make the crime report

ok - will do, I'll hide in DS's loft when the rozzers come a-knocking!

OP, I love how you've had all the keyboard warriors on strings!

I'm assuming that your son lives rent free in this fabulous bedroom? 🤣 I'd say from the age of 16...how.much could you have rented out that bedroom for... Take that into consideration too. 😂

Good bonkers though 😂

@Sadiecow

I can barely spell, but apparently our courts are quite hot on breaches of fiduciary duty when there is fraud. Something to do with being one of the most trusted financial locations around the world (despite our tax regime) and indeed even the americans hold significant propertions of their billions in the uk, because of our laws, and why so many family banks locate here. 3,500+.

the best hyperbole ever seen on MN!

This statement makes this thread a complete classic!!

Thank you. :)

And to celebrate i will have another glass of wine.

And I love how so many are taking the Airbnb idea seriously 😀

People are mental.

Of course investing in property is a solid, relatively low risk investment.

I’ve taken some money gifted to my children and put it into property. Based on rough calculations they will be getting 5x their investment back by the time they are old enough to cash it in.

OP is financially stable with a good property and a well paid job, there was never any real risk of not being able to pay this money to DP, so where’s the problem?

The only difference here is that I would definitely give DS a bit more of the increased value from the house - maybe not as a lump but put another 5k aside for when he finishes uni or something.

But you have no obligation to do so!

@ShoebillStork it won't be the rozzers! It'll be the police firearms unit! It's almost like you're taking this seriously!

Look at your window, they're currently got their sights set on YOU!

It's been nice knowing you, I'm sure DS will visit you in your high security wing.

*you're not taking

To be fair, I don't think you've done anything wrong. I'm in the process of buying a house and would clear out the kids accounts now if i needed to and pay it back in the future. They are only 7 and 1 right now so maybe not quite the same situation but it's for their future too, not just mine.

@Ohpulltheotherone Investing in your property is high risk. It really isn't a low risk investment at all. You have no diversification, and the returns are by no means certain. We've seen periods of negative equity, and there are currently issues with leaseholds and cladding that affect resale values. What if subsidence happens? What if you get into a dispute with neighbours?

If it's your children's money you're investing, have you documented the investment decisions you've made?

The issue with the OP isn't so much the investments she's made - although I think they're questionable - but that her child's money is mixed with her own, and there's no way of identifying whose money is whose. Ultimately, if you're challenged on whether you've made the best decisions for your child, will you be able to explain what you've done and why without resorting to intangibles like 'he's got a nice bedroom'? With the OP, there's an argument that she's acting in her own interests rather than the child's. And if that's true, who has the interest of her son at heart? Is the OP going to sue herself on behalf of her child? I think not.

My own approach - and remember I am financially and legally illiterate here - is to keep my childrens' money and my own absolutely separate. And they seem to be doing quite well for it - I'm far more conservative in their investments as a result of the "can I justify this?" test than I am in my own.

without resorting to intangibles like 'he's got a nice bedroom'?

Give me strength.

NOT INTANGIBLE TO DS and DSS! WHO WERE DIRECTLY AFFECTED EVERY DAY!THEIR CHILDHOOD WAS NOT ON HOLD!

It really isn't a low risk investment at all. You have no diversification, and the returns are by no means certain. We've seen periods of negative equity, and there are currently issues with leaseholds and cladding that affect resale values. What if subsidence happens? What if you get into a dispute with neighbours?

And what if the sky falls on their house tomorrow?

Tbh if all this shit happens, OP and DS have a lot bigger problems than DS's tiny portion of the house value.

With the OP, there's an argument that she's acting in her own interests rather than the child's. And if that's true, who has the interest of her son at heart? Is the OP going to sue herself on behalf of her child? I think not.

Dear god what bull crap.

This thread has been great 😂

The point is that the gearing, lack of diversification and lack of liquidity makes investment in a single residential property high risk. It's not low risk at all. I can explain this for you, but I can't understand it for you.

can explain this for you, but I can't understand it for you.

I can understand it Kitten. Just think it's irrelevant.

ok you read all the text books👍🏻

Kitten most of us ordinary bods have a lot of their eggs in single residential property fgs.
You are wittering .

Amazing 😂 I'm off to get popcorn for the rest of this thread 🍿

I'm on my umpteenth batch.

If there was a Batshittery Corner in Classics I'd nominate it.

OP invests low risk, DS gets say, 12k

OP invests in house, DS gets cool bedroom plus likely more than 12k, op seems to be aiming for giving him about 15k

what is shady and wrong about that? Her ds is better off this way and has had a nicer life growing up too

it was invested, and he is getting it back plus more than interest - I don't see the problem.

Take the value of your house immediately after the loft conversion and work out what percentage £10,000 was of that (E.g. on a value of £180,000 the percentage would be 5.56%)
Now work out what’s the current value of your house, and figure out what 5.56% of that is, and give him up to that. If your property value is now £200,000 then his percentage will be worth £11,120
FWIW I think it’s a great way of accumulating interest OP!

What @Notjustanymum sayd

If there was a Batshittery Corner in Classics I'd nominate it

@C8H10N4O2 - I've not seen you on The Archers thread for ages - have you jumped ship?