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Discuss investments with other users on our Investment forum. For more advice read our tips for saving for your child's future.

Original poster

Kids money!

36 replies

gettingolderbutcooler · 25/01/2023 21:51

The kids stocks and shares ISA at H&L are currently up about £2,500 from original investment of £17k.
Is it sensible to take out that profit? Just leave the original £17k? I was just thinking if it goes gosh over the next 5 years, at least they will still have that profit.
Not sure if we are even allowed to do that.
And if I should, I suppose it could go into their cash ISA?
Thank you!

OP posts:
blueshoes · 31/01/2023 23:07

You can pay for financial advice or you can do it DIY.

Lots of people don't or cannot get head around it. My dh included and he is very intelligent in other ways. I do it DIY and choose my own funds because I save on fees and costs and to me it is not rocket science, if a little dull. But by all means pay for the advice. It is better to spend a few hundred quid on an IFA rather than put it in cash or premium bonds, which is what most people do by default which I think is a big mistake if you have a long time horizon, which children generally do.

My S&S ISA/JISA/pensions have spectacularly done as well if not better than property over 20 years using a fraction of my brain space (I buy and forget about it) and with no maintenance costs or aggro or tax complications. It is one of the great mysteries why nobody seems to talk about S&S as an investment, always property.

blueshoes · 31/01/2023 23:11

pbdr · 31/01/2023 21:07

Having £17k invested in a random Japanese fund that you don't understand is extremely risky and inadvisable. If you want something you can just set and forget you'd be much better with a globally diversified multi-asset fund or index tracker such as;
Vanguard lifestrategy 100
Vanguard FTSE Global All Cap
Any FTSE All World Index tracker
Blackrock consensus 100

to name a few.

The above are diversified across world economies, both developed and emerging (rather than the risk being concentrated in a single economy like a Japan fund), and diversified across a very large number of companies in different fields (tech, oil, retail etc.), typically including a mix of large, medium and small companies. This approach spreads the risk so that you are not gambling it all on a single section of the Japanese economy doing well (because if instead it collapses then you've lost everything).

Once you have chosen where to invest your money, leave it alone. Don't keep trying to time the market, the evidence clearly shows that the more you meddle with your investments the poorer your overall return typically is. Even investment managers underperform the market on average, so your chances of outperforming by sticking your nose in is very slim. Keep in all equities until around 5 years before you/your child is likely to want to access the money, then consider switching to a lower risk (or even cash) holding to protect your capital.

Alternatively, listen to pbdr. Pick any one of the 4 index tracker funds she listed and you would not go far wrong.

Original poster
gettingolderbutcooler · 01/02/2023 07:53

@blueshoes thanks! Glad yours are doing so well. Xx

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Original poster
gettingolderbutcooler · 01/02/2023 17:38

Me again guys.
Look at the choice!!!! I mean, if I search Vanguard on the HL site, there are loads of options in shares and funds- so many!!!

Kids money!
OP posts:
Original poster
gettingolderbutcooler · 01/02/2023 17:39

Hundreds....

Kids money!
OP posts:
safeplanet · 01/02/2023 17:59

.

nannynick · 01/02/2023 20:58

This podcast may help with fund picking meaningfulmoney.tv/BW7
Think about the time the money is invested. Consider how much up and down the person investing can take - the volatility. Investing over a 10-15 year period someone could take a lot of volatility but when it comes to taking money out, then they may want things more stable. With a JISA, some young people will move it to an ISA and continue investing, so they may still invest in something with a high volatility, so they get good growth in good times.

Original poster
gettingolderbutcooler · 01/02/2023 21:52

@nannynick thank you! I will watch that.

OP posts:
Floofyduffypuddy · 05/02/2023 18:37

@gettingolderbutcooler

I did loads of research and found vanguard to be what I'm after.
My dc have a vanguard life strategy 100% equity.
Vanguard Japan
Vanguard s and p ( American stock market).
And some others.

A few what I call gamble funds.
Google, use trust net and morning star to cross reference.

I wouldn't trust hargreaves to choose.

I've got the app and search and buy and sell on it

LegoGoldenDragon · 05/02/2023 20:39

Funds will invest in a variety of underlying shares, so a ftse tracker would have shares in ftse companies. Yours are Japan focused, so if Japan does well or bad yours will do the same. If you wanted to diversify, you could keep some in there and then pick say UK, EU, US and emerging markets funds too. Then if there were losses on any one fund they would be balanced by gains on others. It also protects against the collapsed of a fund (look up Neil Woodford) where you end up getting a fraction back. Currently anyone who invested in Russia a couple of years ago has no hope of getting any back.

Original poster
gettingolderbutcooler · 06/02/2023 07:50

@LegoGoldenDragon
@Floofyduffypuddy

It's good advice. I've learned a lot here!
Thank you both very much.

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