Active discussions

Meet the Other Phone. A phone that grows with your child.

Meet the Other Phone.
A phone that grows with your child.

Buy now

Please or to access all these features

Talk
Money matters

Find financial and money-saving discussions including debt and pension chat on our Money forum. If you're looking for ways to make your money to go further, sign up to our Moneysaver emails here.

Original poster

What to do advise DD to do with Junior ISA at 18.

11 replies

Kneenightmare · 11/05/2024 12:46

DD is 18 in autumn and has money in a junior ISA. She’s fairly sensible with money and is happy for us to guide her. I want to transfer £4K into a LISA with the intention of moving the rest (c. 7k) in future years. I’m wondering where it is best to save the rest in the meantime. I’m also considering whether some should go in investments (although this makes me nervous!). She’s likely to be a low earner based on her current thought on her career and has a physical condition which could impact her ability to work in her later years so I’m keen to support her to make the right decision. She’s keen to stay at home and save up to buy a house but she won’t work until 19 and is struggling to find a part time job now because of her condition.

OP posts:
confusedlots · 11/05/2024 15:27

I would definitely put the max you can into a LISA and encourage her to continue to save what she can into it. That's assuming she will buy her own home in the future with a mortgage. The excess I would put into a S&S ISA or premium bonds until she can top up the LISA again.

Maybe she'll want to use some of it now though? For driving lessons or to purchase a car or something like that?

Squirtleye · 11/05/2024 23:59

Bear in mind lisa and s&s isa are savings included in uc and other benefit limits.

IamSlave · 12/05/2024 07:54

Invest some, why not start out as 200 to start and go from three.

LauraNorda · 12/05/2024 07:57

Put some into her SIPP. Pensions are not counted for stuff like Universal Credit.

Original poster
Kneenightmare · 12/05/2024 22:42

Thanks for the advice. We don’t get UC, so that’s not a concern. I think a stocks and shares ISA is a good idea, I might just suggest she moves a small amount per month.

OP posts:
Bjorkdidit · 13/05/2024 06:33

If she has a physical condition is that something she'd be able to get PIP for?

If she's likely to be a low earner, is buying a house a realistic option where you are? Of course she could end up buying with a better paid partner or end up earning well herself.

Investments would be OK (can you get a S&S based LISA or are these all cash?) given that it's unlikely she'll want to buy in the next few years so should have time to outride market volatility but of course there's always the risk that the market is down when she wants to buy whether its in 5/10/20 years time but that timescale means it's more likely to outperform cash in the meantime.

Driving lessons may also be a good investment and widen her possible job opportunities - but that may be something that you can pay for her out of current income? But for example our graduate trainee scheme requires people to have a driving licence because the job involves travel that isn't practical on public transport.

Any money you can't or don't want to tie up in investments just needs to go in the best paying cash account - whether easy access or fixed rate - you can get around 5% still.

GoingOnHol · 13/05/2024 06:47

Kneenightmare · 12/05/2024 22:42

Thanks for the advice. We don’t get UC, so that’s not a concern. I think a stocks and shares ISA is a good idea, I might just suggest she moves a small amount per month.

I assume the point was that your DD might be able to claim UC if she is on a low income in the future

crumbpet · 13/05/2024 06:48

Just but all that's left into a stocks and shares ISA minus about £500 that she can enjoy spending now

Original poster
Kneenightmare · 13/05/2024 10:16

Yes sorry I see the point about UC now! I’m hoping she will
find a supportive partner which will mean she can afford a house. Property prices are comparatively reasonable around here you can get a one bed flat in our village for around £100k.
i looked into PIP before and she’s borderline to be honest. We’ve always really encouraged her to be as independent as possible but maybe I need to think the extra money would help her be independent. There is a lot she would struggle with if she lived independently due to the nature of her disability. Thanks for the advice.

OP posts:
Original poster
Kneenightmare · 13/05/2024 10:18

On the job front she has chosen a college course that leads to a pretty low paid sector. With more study she could achieve an average salary but it would be challenging for her on a number of fronts.

OP posts:
LauraNorda · 13/05/2024 15:56

For the PIP, find a website for a charity that covers your daughters condition. They will often have a section that tells you exactly how to word your PIP application for the best chance of qualifying.

Another reason I suggested a SIPP is that pensions are not usually classed as an asset for bankruptcy purposes. Any money in there is not touchable until your daughter is 57, either by her for anyone else.

If you can get 25 grand into a SIPP by the age of 23, even if you never save another penny, in 40 years time it would be worth 1.3 million in todays money, assuming 10% growth a year.

New posts on this thread. Refresh page