We have £1500 to invest for our little one by way of inheritance. So...does it go into an isa and stagnate or are there some more creative ways to invest this money?
Gold bullion ? You should be able to get it vat free and its never going to be worth nothing or zero'd out. Coins or small bars or hold it in a vault.
Silver will get you a decent sized bar that can double as a paper weight or door stop and conversation piece.
If you have a mortgage, pay off part of it so you aren't paying any interest on that part then give him a portion of what your property has gained in 10 years.
Did a variation of this for the kids(£2500 each) 11 years ago with a buy to let rather than some kind of bank/building society/ISA account, now selling and it's gained £60,000 over what I paid for it, I invested £20,000 plus their £5,000, after CGT roughly they'll get double their money back.
What a great idea!Originally Posted by K300
Another option is premium bonds in their name
^^^This^^^
I started saving and investing when I left the Army in my early 20s and started as a teacher. In the beginning, the interest on bank savings was around 10%. Not too shabby, but we all know where it went. That's why I switched to real estate when I was around 30 y/o. Buy to let, commercial units because -under Dutch rules- it's easier to evict a tenant from a commercial building than from a normal house. I never needed that. Now, in hindsight, I realise that renting out commercial real estate is pretty tricky... You have to deal with iffy persons from time to time. After a few years, I opted for a professional letting office between me and the tenant.
Gamestop stock is down at $49. Buy that and it should go up to $1000 a share next week.
NOT. Do NOT do this
If it was me I'd stick it in an index tracker. At 7% per annum after inflation (give or take) it will double every 10 years in today's money. Maybe stick in a pension for them - in 60 years it will be worth nearly 100k in today's money(I don't know how old your little ones are).
Last edited by ryanb741; 5th February 2021 at 09:17.
If you decide to invest it in the stock market, I’d drip feed it in over a period of time to reduce volatility, especially at the moment.
Premium bonds are an option - no risk to capital but on that amount highly unlikely to win anything.
Coventry are paying 2.95% on their Junior ISA which is an amazing rate at the moment. Can’t be cashed in until 18. May not last.
I would put it in a global index tracker that is low cost to run, vanguard and fidelity do them along with others.
Stocks and shares ISA.
i would agree Premium Bonds
capital pot is too small for anything else risk free
with £1.5K and buying through a dealer you will get a poor return
silver is going through the roof but again £1.5K is not enough to play in the trading markets
per my previous post - Premium Bonds
also remember if holding precious metals at home your insurer may need to be notified
I mentioned premium bonds but at that level the chances of any return are very small. £25 is the minimum win and Martin Lewis has mentioned on smaller investments returns can be nothing at all. Hence why 2.95% I’m a Junior ISA is a fantastic rate right now.
Bitcoin or an mx5. Both guaranteed to increase (disclaimer - in no way are they guaranteed to increase) in value
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Still buying premium bonds after the drop in win rate? Not me.
Either a low fee global tracker or one of the vanguard lifestrategy funds would probably be the simplest choices.
Trackers are an excellent choice. They just follow the market and are dead easy to monitor. The annual charges are almost non existent and despite their simplicity they are nearly always in the top 25% of performers.
Junior SIPP - start then off on a good habit.
I would stick it in an ISA ETF. Index tracker as others have mentioned is safe but since you have a bit of time I would put it in more adventurous funds like green energy.
Then make sure they are financially educated and understand compound interest. This could be a way for them to develop good financial habits so that by the time they get the money in 10 years, they would consider reinvesting it or saving it towards a significant goal e.g. buying a house.
Of course this is in no way financial advice. Historical performance is not an indication of future performance, etc, etc.
Lego and caramac bars, live for the now!
Some sort of visible easily added to savings vehicle, try to instill the saving vibe within them.
Do you think doubling the fund in 11 years is a good return over what even a tracker would have acheived? Even if it had only been in a GIA managed correctly there wouldn't have been any CGT to pay.
Premium Bond returns are around 1% so that's less than inflation; you're losing money every year.
I'd put the money in a low cost S&S ISA & pick a couple of moderately adventurous funds.
Steel Rolex IMO, you’ll have 10 years of enjoyment and it will increase in value.
I like this idea a lot, although when I was in the same position I did the child ISA fund. My thinking was along the lines, if the money was locked away, I couldn’t touch it irrespective of my needs or wants. And secondly, as the child grew and received other money gifts, or if I wanted to top up, I could.
IMO putting the money into your own house or a BTL could get messy if things don’t go to plan in more ways than one.
For £1,500?
Cheers,
Adam.
original bond seasmaster , chuck it in the safe and leave it there.
Yep My old Dad did this for My kids. He is no longer alive but it’s really nice when a random cheque from a win comes through the letter box.
It’ll be an Air King or similar, rather than a Sub, granted
Toilet Rolls. They will not go off over time, prices will increase with inflation (even without pandemics) and they are always totally indispensable.
Whoever does not know how to hit the nail on the head should be asked not to hit it at all.
Friedrich Nietzsche
Nothing to stop you topping up the pot...you could always sell it in x years time and split the proceeds accordingly. Or buy their share out.
I know it’s not a business transaction, so I’m back to the stocks and shares ISA :)
Yes but the win rate has been decreased recently so those checks are coming less often, giving a lower equivalent return.
Loads of good advice so far thanks! I have no experience of shares but will look into it, I like the idea of something tangible like gold or silver....or a watch, maybe an older motorcycle, they seem to be on the increase !
I could buy an omega 2254 and wear it until she is 21 then hand it over ! Win win
Put it in Bitcoin, might not be worth anything, conversely might be 50k.
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buying secondhand gold is very, very profitable IF you know your hallmarks etc
i know somebody who did very well - he would buy every thing from single broken earring to huge 'gansta chains'
BUT you have to be very, very hard and not at all sensitive because you will hear all the sob stories and sellers in tears - and you will inevitably get some stolen goods - fact of life
and loads of people will try and rip you off
buying rings with stones unless you know what you are doing only pay for the gold - if you do by chance get a diamond its a bonus
and one major thing - NEVER TRADE FROM HOME as its asking to get robbed
don't forget that you have to sell your gold to a dealer who will not pay market spot prices as he has to smelt the gold and make his profit
never ignore any platinum you get offered as is it very valuable and in demand
an interesting fact - any 'new' gold items made since 1983 will have some gold from the Brinks Mat robbery, lol
also no gold has been 'made' on earth as it was formed during cosmic collisions/supernovas etc and brought to earth by asteroids and in the very formation of our planet from cosmic debris etc
your gold is over 4 billion years old
Last edited by nick h; 6th February 2021 at 11:26.
Maybe stick it in a global equity fund within a stocks and shares isa and forget about it for years.
Something like Fundsmith or Lindsell Train Global Equity. Or a Vanguard Life type tracker?
£1500
I’m a Lego investor.....
I’d buy as follows.....
42096 set at an achievable £110 each as 5 (£550)
75237 at £35 each x 10 (£350)
42125 at £170 x1 (£170)
Total £1070
The rest I’d buy a gold coin or two
Your Lego - review after 18 months
The first two lots will have retired and at least doubled if not a lot moreas a minimum
The last one is quite new so may be a three year run for about a 200% ROI
Think I’m mad?
Follow the reasoning of an example set the Porsche 911 gt3 that was avail about 3 years ago at roughly £150 (slightly less in places)
This is now bought by collectors regularly at £400
The tie fighters offer great value - similar examples can be given
It’s big business - storage is important to kneel mint
And just sell when you’ve done 200% roi or 100% roi depending how you feel, then go in again
S&S TRACKER: Vanguard Lifestrategy 100 - low fees and good performance.
GOLD: Buy Sovs from Chards or Atkinsons. CGT free and lovely coins.
GAMBLING: Bitcoin or Ethereum.
or how about £500 on each!?
£1500 would get you a 1oz pure gold Britannia coin.
Over a 10 year horizon and with £1500 a Stocks and Shares ISA is your best bet, either invest in a single fund (tracker for the risk averse) or spread it about a wee bit. I use Hargreaves Landsdowne and some of their fund recommendations.
I'd avoid gold as it is higher risk, and you lose the premium you pay on purchase when you sell. For example coins are c. 5% above spot to buy, and you sell at 2-5 % under spot, so the price needs to move c.8% before you make any profit. There are fees in stock ISA investment, but nowhere near this high.
Very interesting. Never thought about Lego as an investment, even though I’m kicking myself for not buying a few of the retired Star Wars sets when they were available. I’m going to have to look into this further.
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Lego is nothing compared to the returns from limited edition Dalek bubble baths.
What’s your view on the Mos Eisley Cantina? Thinking of buying and chucking in the loft!
It’s a HUGE set - the mini figs are not unique to the set
It will retire of course - all sets do, but I think that for the money you’d do better spreading it into possibly a couple of smaller sets
There is a new Creatir Lego Porsche out this month at just £119
It’s retro chic cool and will be around for 18 months or so before it retires
2 or three put away will do well for the future
The existing £169 Ferrari will do well
The HUGE sets I personally have avoided as they just tie up a lump of money that if it’s not performing well is ine difficult lump to move in one go
Lego speed champions at just £15 each are going to be huge again soon - the retirees from the last lot now pull in excess of £35 some way way more
Do the maths - take into account small fees to sell and post, plus discounts available and you’ll see that it’s not a dream
As an aside - don’t put anything in the loft unless it’s warm and climate ok as damp can get to the boxes.... equalling damage
Thanks useful info! Maybe I’ll get one for me then 😊
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