Whilst I've finally got around to researching pension and long term savings options for myself, I've realised I need to get around to sorting something out for my children. My eldest is nearly 6 and I have about a grand set aside to invest as a lump sum for her. My youngest is nearly 1. We're just coming to the end of paying off a short term loan and the plan had been to take the £200 extra we'll have each month when the repayments end and stick £100/month for each of them into a Junior ISA.
I did open up a cash ISA for my eldest a few years ago and forgot to put anything in it. Everything I'm reading says a stocks and shares JISA is the way to go as its far more likely to outperform cash over the length of time we're talking.
I've set up JISAs with Hargreaves Lansdowne. I've read some people advising if you want to be hands-off, just invest it all in a fund like Vantage LS 80 or even Vantage LS 100 and just forgetting about it. My youngest could have a pot of around £29k by the time she's 18 (average case) or close to £38k (best case).
The only catch to me is I'm not entirely comfortable with where some of these funds invest their money. I could probably live with myself investing in whatever for myself but I'm not really comfortable with investing my child's future money in tobacco and certain pharmaceutical companies.
I'm aware there are "ethical" funds but the definition of ethical is cast pretty wide and it depends on your priorities. This is one I had my eye on:
Kames Ethical Equity (Class B) Accumulation Fund Price & Information
I realise making ethics a priority is likely to negatively impact the longer term returns. Does anyone else use a JISA for their children and if so what do you invest in?
I did open up a cash ISA for my eldest a few years ago and forgot to put anything in it. Everything I'm reading says a stocks and shares JISA is the way to go as its far more likely to outperform cash over the length of time we're talking.
I've set up JISAs with Hargreaves Lansdowne. I've read some people advising if you want to be hands-off, just invest it all in a fund like Vantage LS 80 or even Vantage LS 100 and just forgetting about it. My youngest could have a pot of around £29k by the time she's 18 (average case) or close to £38k (best case).
The only catch to me is I'm not entirely comfortable with where some of these funds invest their money. I could probably live with myself investing in whatever for myself but I'm not really comfortable with investing my child's future money in tobacco and certain pharmaceutical companies.
I'm aware there are "ethical" funds but the definition of ethical is cast pretty wide and it depends on your priorities. This is one I had my eye on:
Kames Ethical Equity (Class B) Accumulation Fund Price & Information
I realise making ethics a priority is likely to negatively impact the longer term returns. Does anyone else use a JISA for their children and if so what do you invest in?
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