Hi,
We now have 5 grandchildren and only the two elder ones have a saving scheme set up.
They are 'Bare Trusts' set up with Ballie Glifford drip feeding the minimum subscription into an Investment Trust - Monks.
https://www.bailliegifford.com/
We are looking at doing the same for the three younger grandchildren.
Because the amounts are small, we are looking for the the smallest possible ongoing charge and wondered if there may be a different way of investing small monthly amounts for the grandchildren?
Regards,
PB
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Investing for Grandchildren
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- Lemon Slice
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Re: Investing for Grandchildren
Personally I think you are already doing the right thing. There are various platforms that will charge you varying fees to achieve the same thing, but give you more choice of investments. BG make no charges on their Children's Savings Plan as I understand it so that's a big plus. Also they have some good funds, I think Monks is an excellent IT but if it were me I would split it with Scottish Mortgage, which has a great history of long term performance. I am invested in both for the long term.
MM
MM
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- Lemon Slice
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Re: Investing for Grandchildren
Yes, we use BG and Scottish Mortgage. But also Witan and their Jump scheme.
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- Lemon Half
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Re: Investing for Grandchildren
I have bare trust accounts with Jump (for Witan), F&C and Alliance Trust Savings for my grandchildren. The most flexible is Alliance Trust, as you can invest in any IT or share through their account.
TJH
TJH
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- Lemon Quarter
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Re: Investing for Grandchildren
PeterBill wrote:Because the amounts are small, we are looking for the the smallest possible ongoing charge and wondered if there may be a different way of investing small monthly amounts for the grandchildren?
Hargreaves Lansdown offer a bare trust with their Junior Investment Account. No ongoing charge at all with shares, bonds, ITs or ETFs, but you do have to pay dealing charges. Alternatively no dealing charges for OEICS, but 0.45% ongoing platform charge. Should you want to, there is nothing to stop you making regular investments into an OEIC for free and then transferring every year or so over to investments which do not attract the 0.45% platform fee.
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- Lemon Quarter
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Re: Investing for Grandchildren
Forgot to mention, HL do offer regular investment in certain UK shares, ITs and ETFs for a charge of £1.50 per investment. That might work out better for you if the investment you want is available.
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Re: Investing for Grandchildren
Just got the news ...
Baillie Gifford abandons trust saving schemes to Hargreaves
https://citywire.co.uk/investment-trust-insider/news/baillie-gifford-abandons-trust-saving-schemes-to-hargreaves/a1222729
We had set up each of our grandchildren's investments as "Bare Trusts". Well, it looks like we are forced to move our grandchildren's investments (Monks and SMT) to HL as Baillie Gifford decide it's just not worth it. We have 5 young grandkids with investments ranging from £1k to £12k, overall we drip feed 60 monthly investments per year into the 5 accounts (in small amounts) so expect dealing charges to go from the current zero charge to quite a substantial charge
Anyone else have this problem of trying to minimise the charges on grandchildren's investments?
Baillie Gifford abandons trust saving schemes to Hargreaves
https://citywire.co.uk/investment-trust-insider/news/baillie-gifford-abandons-trust-saving-schemes-to-hargreaves/a1222729
The decision leaves just Aberdeen Standard Investments and BMO Global Asset Management as the only two groups still operating savings schemes linked to their investment trusts.
Baillie Gifford claimed the transfer was in the ‘long-term interests’ of the plan-holders and that it had chosen Hargreaves on the ‘quality of service, cost, breadth of proposition, and experience of managing account transition’.
We had set up each of our grandchildren's investments as "Bare Trusts". Well, it looks like we are forced to move our grandchildren's investments (Monks and SMT) to HL as Baillie Gifford decide it's just not worth it. We have 5 young grandkids with investments ranging from £1k to £12k, overall we drip feed 60 monthly investments per year into the 5 accounts (in small amounts) so expect dealing charges to go from the current zero charge to quite a substantial charge
Anyone else have this problem of trying to minimise the charges on grandchildren's investments?
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- Lemon Slice
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Re: Investing for Grandchildren
Yes, we are affected similarly. However, despite the hassle in the end we shall have Our old Jump/Witan and now BG investment trusts in the same HL account, so less work in managing in the future. And you can link all the accounts so only have to log in on-line once. The form involved this time is different than previously - it's called a Bare Trust Consent Form - and they are asking for ID for our grandchildren. So I rang them up to see why different and were the Jump/Witan shares actually in a bare trust (previously HL and Jump told me that the bare trust would continue in force without further ado, as does the BG FAQ literature). HL confirmed that he previous transfer was indeed in place and that they had not got the procedure correct before, hence the revised form and extra info requested!
Re charges they should not be more, especially as BG have got a better deal than Jump did - at least for the first three years. Your "60 monthly investments per year into the 5 accounts (in small amounts)" might need reconsideration, but I don't think you should not see any increase in charges for the first 3 years.
Re charges they should not be more, especially as BG have got a better deal than Jump did - at least for the first three years. Your "60 monthly investments per year into the 5 accounts (in small amounts)" might need reconsideration, but I don't think you should not see any increase in charges for the first 3 years.
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