Jr ISA, 2 years to go - what would you do?

[aramox1]

I put my child's CTF money into a junior ISA and added to it, mostly in vanguard lifestrategy60 and 80. The 80 is doing ok, the 60 rubbish. We were planning on starting using it for uni in 2 years' time. I want to keep adding money, but it seems risky to put it in now - what would you do? find a savings account?

Two years is a short time to invest, so mostly cash savings so you know that money is there for the date you need it.

I have the joy of working in this field (indirectly). Stock markets may well fall further, particularly the U.K. which has held up better than the US. I'd either drip feed it in monthly or you have the option of holding it in uninvested cash in your S&S ISA if it gets near to the end of the tax year and you don't want to lose this year's allowance.

Another option is to put some of it in a cautious/total return fund which aim to protect against stock markets falling. Although they're not infallible either.

I'm a big fan of investing in the stock market (it's going to pay off my interest only mortgage) but it's finely-poised at the moment. High inflation, rising interest rates and slowing economy aren't good signs in terms of the stock market over the next year.

I could just stash it in the cash isa which has 1.5%. Ugh it's such a responsibility!

There's better interest rates available on non ISA kids' accounts if you want to invest it in cash. From memory, one of our instant access ones is currently paying over 2%.

The income tax exemption isn't so tempting on cash ISAs although bear in mind the rules on interest from parental gifts.

Tricky!

I would be tempted to leave what has accumulated where it is.

But put new money into a different account?

I have a cash and a stock and share ISA for mine most is in stocks but we kept one in. Cash to protect us from this.

It could bounce back very quickly but...if you draw money out now...you literally lock in the losses.
@aramox1

Has anyone cashed in a child trust fund lately. My granddaughter has just got hers which was £400 thought she would have had more than that after 18 years! Any thoughts

Benty,

Was it invested or in cash, was it cautious investment?

Op unfortunately chose investments that are too tame for a young child. Even I'm set for 100% EQUITY.

Was it added too? Right now things are still low m

Tbh I chose my portfolio when kid was 14 already so seemed reasonable if they were going to use it for uni. It's a bit better now but I'm upping the equities and thinking about a cash isa for the last bit.