Alfa Romeo Forum banner

1 - 6 of 6 Posts

·
Registered
Joined
·
1,172 Posts
Discussion Starter #1
I have been left £2000 to invest for my youngest lad until he turns 18 - another four years yet. The trouble is, I haven't got a clue how best to do that.

The options I've considered so far:

1. Premium Bonds - if the worst comes to the worst he can cash them back in and he has some chance of the fund growing.

2. I can't think of anything else!

What should I do for the best? :confused: :confused:
 

·
Registered
Joined
·
963 Posts
Four years is really too short to consider any former of equity risk. Cash deposits, a shorter term inflation beating structured product (like hen's teeth) and National Savings such as Premium Bonds really are your only options.

If you're not investing in a tax free investment make sure you register for gross interest if you're using the offspring's name (r85 form).

Tbh, over four years you're not really investing, you're just keeping it safe for him and hopefully keeping pace with inflation.
 

·
Registered
Joined
·
963 Posts
Four years is really too short to consider any former of equity risk. Cash deposits, a shorter term inflation beating structured product (like hen's teeth) and National Savings such as Premium Bonds really are your only options.

If you're not investing in a tax free investment make sure you register for gross interest if you're using the offspring's name (r85 form).

Tbh, over four years you're not really investing, you're just keeping it safe for him and hopefully keeping pace with inflation.
 

·
Registered
Joined
·
29,280 Posts
pretty much as the abyss says. if i was you i'd have a look at the comparison sites and see which banks/building societies are offering the best rates on bonds - and consider whether you'd prefer a fixed rate one or a variable rate. also consider how long you'd want to be tied-in. there's no real point in investing in anything equity-based over a short(ish) term like 4 years. you could do well that way if stock markets continue to rise but you'd have to accept the risk that they're pretty volatile at the moment, and you'd also probably have to pay initial charges from the £2000 initial investment. nowt wrong with premium bonds either although as far as i'm aware they're not interest-bearing. the only money you make is from winnings.

and make sure you do it in your lad's name - no point in having to pay tax on any gains
 
1 - 6 of 6 Posts
Top