Donate to Remove ads

Got a credit card? use our Credit Card & Finance Calculators

Thanks to johnstevens77,Bhoddhisatva,scotia,Anonymous,Cornytiv34, for Donating to support the site

Investing for Grandchildren

Closed-end funds and OEICs
PeterBill
Posts: 25
Joined: November 11th, 2016, 5:35 pm
Has thanked: 19 times
Been thanked: 2 times

Investing for Grandchildren

#24055

Postby PeterBill » January 18th, 2017, 9:31 am

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

MaraMan
Lemon Slice
Posts: 497
Joined: November 22nd, 2016, 3:30 pm
Has thanked: 219 times
Been thanked: 228 times

Re: Investing for Grandchildren

#24101

Postby MaraMan » January 18th, 2017, 11:59 am

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

Nocton
Lemon Slice
Posts: 491
Joined: November 6th, 2016, 11:25 am
Has thanked: 134 times
Been thanked: 138 times

Re: Investing for Grandchildren

#24181

Postby Nocton » January 18th, 2017, 4:56 pm

Yes, we use BG and Scottish Mortgage. But also Witan and their Jump scheme.

tjh290633
Lemon Half
Posts: 8208
Joined: November 4th, 2016, 11:20 am
Has thanked: 913 times
Been thanked: 4096 times

Re: Investing for Grandchildren

#24213

Postby tjh290633 » January 18th, 2017, 6:20 pm

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

hiriskpaul
Lemon Quarter
Posts: 3852
Joined: November 4th, 2016, 1:04 pm
Has thanked: 682 times
Been thanked: 1489 times

Re: Investing for Grandchildren

#24245

Postby hiriskpaul » January 18th, 2017, 8:18 pm

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.

hiriskpaul
Lemon Quarter
Posts: 3852
Joined: November 4th, 2016, 1:04 pm
Has thanked: 682 times
Been thanked: 1489 times

Re: Investing for Grandchildren

#24250

Postby hiriskpaul » January 18th, 2017, 8:31 pm

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.

PeterBill
Posts: 25
Joined: November 11th, 2016, 5:35 pm
Has thanked: 19 times
Been thanked: 2 times

Re: Investing for Grandchildren

#218045

Postby PeterBill » April 29th, 2019, 4:26 am

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

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?

Nocton
Lemon Slice
Posts: 491
Joined: November 6th, 2016, 11:25 am
Has thanked: 134 times
Been thanked: 138 times

Re: Investing for Grandchildren

#218074

Postby Nocton » April 29th, 2019, 9:36 am

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.


Return to “Investment Trusts and Unit Trusts”

Who is online

Users browsing this forum: No registered users and 15 guests