I want to 投資する £600 a year for my new baby - what is the best way?

By Harvey Dorset

Updated:

My partner and I are 推定する／予想するing out first child at the end of July. I would like to put some money away for them at birth and then 年一回の until they are 18.?

I started 投資するing for myself at the start of 2023, putting away £150 a month, every month.?

I would like to do a 類似の thing for my new son, but would be doing £600 a year in a lump sum, 同等（の） to me saving £50 a month.

I am long-称する，呼ぶ／期間／用語 minded and realise that an 18-year time period is a good 量 of time.?

SCROLL DOWN TO FIND OUT HOW TO ASK YOUR FINANCIAL PLANNING QUESTION

Investing for the future: Putting money aside for your child can help them with milestone payments further down the line

投資するing for the 未来: Putting money aside for your child can help them with milestone 支払い（額） s その上の 負かす／撃墜する the line

My partner and I are lower-率 taxpayers and don't use anywhere 近づく our personal Isa 限界s.?

My partner is going to start a 貯金 account as she has very little 危険 appetite when it comes to money. I am 始める，決める on going 負かす／撃墜する the 投資するing 大勝する.?

My question really is what is the most practical and 税金 efficient way of 投資するing for my son's 未来? What would be seen as a 公正に／かなり good long-称する，呼ぶ／期間／用語 戦略.?

For example,?would I be best using my own Isa allowance?to give me more freedom, or a junior Isa??

Would a simple S&P 500 ETF be most efficient or would an active 基金 like Scottish Mortgage be more fitting for an 18-year time period? M.D 経由で email

Harvey Dorset of This is Money replies: Firstly, congratulations on your 未解決の arrival, but secondly, congratulations on having the forethought to 計画（する） financially for your son.

投資するing in your child's 未来 is something most parents will consider, but doing so 早期に will give you the best 適切な時期 to grow this 投資, giving your child as much money as possible to get on the 住宅 ladder or buy their first car.

In saving for your child's 未来, the way you go about it will also 影響する／感情 what 肉親，親類d of return you can 推定する／予想する when it comes to cashing out on your 投資.

Of course, there are a multitude of ways to go about saving for your child, and a number of things that will sway the 決定／判定勝ち（する） you make.

Appetite: Aaron Banasik says it is worth considering how much risk you are willing to take

Appetite: Aaron Banasik says it is 価値（がある） considering how much 危険 you are willing to take

For example, 選ぶing for a Junior Isa is 広大な／多数の／重要な as it 解放する／自由なs up your Isa allowance for more saving on your end.

But as you say, you're ありそうもない to max this out anyway, given the allowance is a generous £20,000 a year and it also gives your child 支配（する）／統制する of the money when they turn 18.?

This isn't a problem if they are responsible, or need the money to buy a car, but not such an ideal choice if you think they'll spend it on holidays when you had it （ーのために）とっておくd for a deposit on a house.

As you are 始める，決める on the 投資するing 大勝する, you need to 重さを計る up the 量 of 危険 you are willing to take, versus the 料金s that you can 推定する／予想する to 支払う／賃金 for 管理／経営.

I spoke to two 財政上の 助言者s to find out what they believe is the best way for you to 投資する in your child's 未来.

Get your 財政上の planning question answered?

財政上の planning can help you grow your wealth and 確実にする your 財政／金融s are as 税金 efficient as possible.

A 重要な driver for many people is 投資するing for or in 退職, 税金 planning and 相続物件.

If you have a 財政上の planning or advice question, our 専門家s can help answer it.?

Email: editor@thisismoney.co.uk with the 支配する line: 財政上の planning?

Please 含む as many 詳細（に述べる）s as possible in your question in order for us to 答える／応じる in-depth.

We will do our best to reply to your message in a 来たるべき column, but we won't be able to answer everyone or correspond 個人として with readers. Nothing in the replies 構成するs regula ted 財政上の advice. Published questions are いつかs edited for brevity or other 推論する／理由s.

Aaron Banasik, 独立した・無所属 財政上の 助言者 at Ascot Lloyd, replies: 投資するing for a child can lay a strong 創立／基礎 for their adult life, enabling them to 基金 可能性のある university costs, deposits for a 所有物／資産／財産 購入（する）, or even to help に向かって 追求するing a career.?

It's 広大な／多数の／重要な to hear that you are both 存在 proactive in planning ahead for your soon to be son.

A Junior Isa is a 約束ing avenue for long-称する，呼ぶ／期間／用語 貯金.?

Not only does it 供給する 税金-efficient 貯金 for children, 確実にするing returns are 免除された from both income and 資本／首都 伸び（る）s 税金, but with an 18-year time horizon, it also can 供給する 構内／化合物d growth as your son won't be able to 接近 the 基金s until he reaches 18 years old.?

For an even longer-称する，呼ぶ／期間／用語 視野 you can also 始める，決める up a 年金 for a child and 与える／捧げる up to £3,600 甚だしい／１２ダース (£2,880 逮捕する of 税金) but of course they would not be able to 接近 the money until the 最小限 年金 age).

The only downside to the Junior Isa is that when your son reaches age 18, he will have 十分な 支配（する）／統制する of the account and it will be 変えるd into a 基準 adult Isa, therefore once he turns 18 he is 合法的に able to 身を引く the 基金s and use them as he sees fit.?

If you save within your own Isa, then you 保持する 支配（する）／統制する but you would perhaps want to use a different 投資 within the Isa so can more easily keep 跡をつける of 名目上 your son's 基金s.

In the 現在の 税金 year, the Junior Isa allowance stands at £9,000, 供給するing ample room for 貯金 beyond the 初期の £600 年一回の 出資／貢献 if its affordable.?

This 柔軟性 許すs for その上の accumulation of 基金s until the end of the 税金 year on April 5, for example if grandparents want to 与える／捧げる. Allowan ces can of course change.

When considering what 投資 戦略 is the 訂正する one, we need to 設立する the difference between the two, that is passive vs active.

Active 管理／経営

Active 投資 管理／経営 伴う／関わるs the 経営者／支配人 活発に buying and selling 株 or 基金s to outperform the market.?

The 経営者／支配人 uses 研究, 分析, and 専門的知識 to buy low and sell high, 雇うing 戦略s like value or growth 投資するing.?

The advantage is the 可能性のある for higher returns, but it 需要・要求するs 重要な time and 資源s, but attracts much higher 料金s 予定 to professional 管理／経営.

More from our 財政上の planning series

Our bi-週刊誌 財政上の planning series 取り組むs your questions and puts them to the 専門家s.?

Find out how to ask a question at the box at the 底（に届く） of the article.

The series so far:

>??I'm a 私的な school teacher - should I move to a 明言する／公表する school to 利益 from the Teachers' 年金 計画／陰謀?

>?Have I dug myself a 資本／首都 伸び（る）s 税金 罠（にかける） with my £46,100 投資 マリファナ?

>?I'm nearly 60 with £235,000 in my 年金 - is it enough to retire at 65?

Passive 管理／経営

Passive 投資 管理／経営 伴う／関わるs 投資するing in a 大臣の地位 that 跡をつけるs an 索引 like the S&P 500 or FTSE 100 or a mix of 全世界の 索引s.?

Passive 経営者／支配人s 目的（とする） to match market returns without 活発に buying or selling 安全s.

This approach 需要・要求するs いっそう少なく 分析 and attracts much lower 料金s compared to active 管理／経営.

投資家s can also 選ぶ for a blend of active and passive 戦略s, 連合させるing both approaches to manage 危険 and 潜在的に 高める returns.?

This 伴う／関わるs using passive 戦略s for diversification and 配分するing a 部分 of the 大臣の地位 to active 管理／経営. Ready-made 大臣の地位s, 申し込む／申し出d by さまざまな 壇・綱領・公約s and 経営者／支配人s, 供給する this blended approach with different 配分s like 80/20, 60/40, or 50/50.?

This popular 大勝する 申し込む／申し出s その上の diversification and lower 告発（する），告訴（する）／料金s compared to 単独で active 基金s.

The choice of approach depends on your 全体にわたる 客観的な for your son and your 寛容 for 受託するing 危険.?

関わりなく your 決定／判定勝ち（する）, it's 決定的な to recognise that 投資s can both 増加する and 減少（する） in value, and there's a 可能性 of receiving いっそう少なく than your 初期の 投資.?

However, you do also need to 耐える in mind that you are looking at the long 称する，呼ぶ／期間／用語 so you might feel able to take a more 危険.

Compound benefits: George Tuck says investing from birth ensures that you can make the highest return possible

構内／化合物 利益s: George Tuck says 投資するing from birth 確実にするs that you can make the highest return possible

George Tuck, 独立した・無所属 財政上の 助言者 at 飛行機で行くing Colours, replies:?As parents in the UK, 確実にするing a 有望な and 安全な・保証する 未来 for our children is 最高位の.?

However, with the 急に上がるing costs of 住宅, education, and living expenses, 保護（する）／緊急輸入制限ing their 財政上の 井戸／弁護士席-存在 has become more challenging than ever.

One of the 最初の／主要な 動機づけs for 投資するing for children in the UK is the 急上昇するing 所有物／資産／財産 prices.?

By 投資するing 早期に on に代わって of their children, parents can 蓄積する 基金s to help them navigate the daunting prospect of 購入（する）ing their first home.

類似して, the cost of higher education in the UK continues to rise, placing a 重要な 財政上の 緊張する on families.?

投資するing for children can therefore 供給する the 財政上の 資源s necessary to 追求する 教育の 適切な時期s without 存在 重荷（を負わせる）d by 過度の student 貸付金 負債.

By starting to 投資する for your child as soon as they're born, they'll be 利益ing the most from the 影響s of 構内／化合物ing.?

This essentially means that by reinvest ing the money the 投資 makes, it will 生成する 収入s on both the 初めの 投資 and on the returns it made 以前.

How £600 a year could become £16,279?

So, for example, if a £600 年次の 投資 grows by 5 per cent every year, by the time your child is 18, the 投資 would be 価値（がある） £16,279 from an 初めの 投資 of £10,800.?

So, 5 per cent growth has become 50.7 per cent. Of course, no-one can 保証（人） the level of 業績／成果, but that would not be a bad nest egg to have if this level of growth was 達成するd!

When it comes to 投資するing for children in the UK, there are several 選択s 利用できる, each with its own 始める，決める of advantages and disadvantages.?

One popular choice is a Jisa, which 許すs parents to 投資する on に代わって of their children in a 税金-efficient manner. Jisas 申し込む／申し出 a 範囲 of 投資 選択s, 含むing 在庫／株s, 社債s and cash.?

The 基金s are locked away until the child reaches 18, at which point they 伸び（る） 十分な 支配（する）／統制する of the account. 現在／一般に, you can save up to £9,000 a year into a Jisa.

The 利益 of setting up a Jisa in your child's 指名する, instead of yours is that it 解放する／自由なs up your 税金-解放する／自由な allowance to 投資する up to £20,000 per year into your own ISA.?

You might not have that much to 投資する 権利 now, but things could change in the 未来.

When deciding on the most appropriate 投資 戦略, it's 必須の that you take ca re to manage the level of 投資 危険 存在 taken.?

Taking 過度の 危険 could lead to unwanted levels of volatility, 反して not taking enough 危険 may mean you 落ちる short of your growth 客観的なs.

One way to manage 危険 is by diversifying the 投資 戦略, 効果的に spreading 投資s across different 資産s, and 減ずるing the dependency on any one particular 投資 適切な時期.?

For example, 投資するing 単独で in the S&P 500 would not 申し込む／申し出 a 広大な／多数の／重要な 取引，協定 of diversification, given that 35 per cent of the 索引 is made up of just ten companies.?

Getting the 権利 advice should help to 避ける making 高くつく／犠牲の大きい mistakes when it comes to 明確に表すing a suitable 投資 戦略.

In 結論, 投資するing for children in the UK is an important 面 of responsible 財政上の planning, 申し込む／申し出ing parents the 適切な時期 to 安全な・保証する their children's 未来 in an ますます uncertain world.?

By 調査するing different 投資 選択s and considering the 衝撃 of 構内／化合物ing and インフレーション, parents can take proactive steps to build a solid 財政上の 創立／基礎 for their children and 権力を与える them to 達成する their aspirations.

Compare the best DIY 投資するing 壇・綱領・公約s and 在庫／株s & 株 Isas

投資するing online is simple, cheap and can be done from your computer, tablet or phone at a time and place that 控訴s you.

When it comes to choosing a DIY 投資するing 壇・綱領・公約, 在庫／株s & 株 Isa or a general 投資するing account, the 範囲 of 選択s might seem 圧倒的な.?

Every provider has a わずかに different 申し込む／申し出ing, 非難する more or いっそう少なく for 貿易（する）ing or 持つ／拘留するing 株 and giving 接近 to a different 範囲 of 在庫／株s, 基金s and 投資 信用s.?

When 重さを計るing up the 権利 one for you, it's important to to look at the service that it 申し込む／申し出s, along with 行政 告発（する），告訴（する）／料金s and 取引，協定ing 料金s, 加える any other extra costs.

To help you compare the best 投資 accounts, we've crunched the facts and pulled together a 包括的な guide to choosing the best and cheapest 投資するing account for you.?

We 最高潮の場面 the main players in the （米）棚上げする／（英）提議する below but would advise doing your own 研究 and considering the points in our 十分な guide linked here.

>> This is Money's 十分な guide to the best 投資するing 壇・綱領・公約s and Isas?

壇・綱領・公約s featured below are 独立して selected by This is Money’s specialist 新聞記者／雑誌記者s. If you open an account using links which have an asterisk, This is Money will earn an (v)提携させる(n)支部，加入者 （売買）手数料，委託（する）／委員会／権限. We do not 許す this to 影響する／感情 our 編集（者）の independence.?

DIY INVESTING PLATFORMS AND STOCKS & SHARES ISAS?
Admin 告発（する），告訴（する）／料金 告発（する），告訴（する）／料金s 公式文書，認めるs 基金 取引，協定ing 基準 株, 信用, ETF 取引，協定ing 正規の／正選手 投資するing （株主への）配当 reinvestment
AJ Bell*? 0.25%? Max £3.50 per month for 株, 信用s, ETFs.? £1.50 £5? £1.50 £1.50 per 取引，協定? More 詳細（に述べる）s
Bestinvest* 0.40% (0.2% for ready made 大臣の地位s) Account 料金 削減（する） to 0.2% for ready made 投資s 解放する／自由な £4.95 解放する／自由な for 基金s? 解放する／自由な for income 基金s More 詳細（に述べる）s
Charles Stanley Direct* 0.35%? No 壇・綱領・公約 料金 on 株 if a 貿易（する） in that month and 年次の max of £240 解放する／自由な £11.50 n/a n/a More 詳細（に述べる）s
Fidelity* 0.35% on 基金s £7.50 per month up to £25,000 or 0.35% with 正規の／正選手 貯金 計画（する）.? 解放する／自由な £7.50 解放する／自由な 基金s £1.50 株, 信用s ETFs £1.50 More 詳細（に述べる）s
Hargreaves Lansdown* 0.45% Capped at £45 for 株, 信用s, ETFs 解放する／自由な £11.95 £1.50 1% (£1 min, £10 max) More 詳細（に述べる）s
Interactive 投資家*? £4.99 per month under £50k, £11.99 above, £10 extra for Sipp 自由貿易 価値（がある） £3.99 per month (does not 適用する to £4.99 計画（する）) £3.99 £3.99 解放する／自由な £0.99 More 詳細（に述べる）s
iWeb £100 one-off 料金 (waived until July 2024) £5 £5 n/a 2%, max £5 More 詳細（に述べる）s
?Accounts that have some 限界s but attractive 申し込む／申し出s??
Etoro*??No 投資 基金s or Sipp解放する／自由な 投資 account 申し込む／申し出s 在庫／株s and ETFs. Beware high 危険 CFDs.Not 利用できる?解放する／自由な?n/a?n/a?More 詳細（に述べる）s?
貿易（する）ing 212*?解放する／自由な?投資 account 申し込む／申し出s 在庫／株s and ETFs. Beware high 危険 CFDs.?Not 利用できる?解放する／自由な?n/a?解放する／自由な?More 詳細（に述べる）s?
Freetrade* No 投資 基金s?Basic account 解放する／自由な,? 基準 with Isa £4.99, 加える £9.99Freetrade 加える with more 投資s and Sipp is £9.99/month inc. Isa 料金No 基金s?解放する／自由な?n/a?n/a?More 詳細（に述べる）s?
先導??Only 先導's own 製品s0.15%?Only 先導 基金s解放する／自由な?解放する／自由な only 先導 ETFs?解放する／自由な?n/a?More 詳細（に述べる）s?
(Source: ThisisMoney.co.uk May 2024. Admin % 告発（する），告訴（する）／料金 may be 徴収するd 月毎の or 年４回の

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