How can I save for my child and me

[Eddieisadick]

I have a stocks and shares ISA which my ex and I both pay into monthly for our daughter.

i have a bit of money just sitting in my bank account (c£20k) and want to make the most of this. But I can’t have two stocks and shares ISA’s

I don’t want to put hers in a junior ISA as she would get automatic access at 18

any tips on what I can do to maximise my money?

Why can’t you have another ISA? Each of you and your ex can open a new one each year.

Remember, too, that you don’t need to wrap your investments into an ISA, you can invest as much as you want outside of one.

You are only allowed to pay into one stocks and shares ISA a year and I control the one we use for our daughter. I’m not keen on handing it over to him to run

With your second point what would be the easiest way to do this? I’m a bit clueless!

Yes, one per year, so a new one every year.

Whybis this a problem? Invest outside of one today and then switch the investments into an ISA next April.

Go and have a look at a site such as Hargreaves Lansdiwn or Charles Stanley. You open an account, then just buy the investments that you want.

The company holds the stocks, bonds etc in the a account for you just the same way as HSBC holds your cash in an account for you.

Who is your current ISA with?

Yes you can open more than one in different years. But you can only PAY into one in any given year. And we pay monthly into our daughters one.

You can hold as many stocks and shares ISAs as you like across different providers. However, you can only contribute the current tax year allowance into one stocks and shares ISA with one provider.

What I do is have one stocks and shares ISA, and run a spreadsheet to keep track of what is allocated to what savings goal (all goal horizons before i reach 60). I reevaluate proportionally once a year.

You should suggest your ex invests his savings in his own ISA. That is much cleaner emotionally, psychologically and financially imo. Then his savings don't take up your allowance. Do this going forwards, do not remove money from a tax protective wrapper.

If you are under 40, consider a LISA if you don't need the money for a particular savings goal occurring before age 60. You can have a LISA and an ISA, but the 4k LISA allowance forms part of your 20k ISA allowance. If you are a higher rate tax payer, consider topping up your pension instead.

Ensure you have enough money held as cash outside your s&s for emergencies so you don't need to cash out during a crash.

How accessible do you need it to be? You could use a pension/SIPP assuming you are not already at your pension annual allowance. However it is not accessible, whereas an ISA is.

Why can you not add to your existing ISA, using a different fund as a way of indicating it is different to the investment you are ring fencing for your DD?

Why can you not add to your existing ISA, using a different fund as a way of indicating it is different to the investment you are ring fencing for your DD?

i didn’t know you could do this - will look into it, thanks

@MamaSharkington it’s not his savings it’s a small amount per month £150 that we put aside for her as a fund for when older. We started it when she was born

@Eddieisadick I mean what he saves for her by putting in in your ISA. He should put his contribution in his own ISA, even if it's earmarked for her in the future, in my opinion. It disentangles you. Your daughter will still get all the money at the end, surely.

Whether you do this or not, the rest of my advice still stands. Stick it in your ISA and invest it (well up to 20k this year, the rest next year). Just track the proportions on a spreadsheet.

You're welcome!!!