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Investing for teenagers/students
Posted: July 27th, 2018, 3:44 pm
by Fenix
So Fenix Jr is at Uni and I'm giving him some spends - £50 a week to tide him over.
He's back for the Summer so I've reduced this to £20 as he gets his food anyway here and it's a bit of a kick in the pants to get some work in the holidays.
So I've got £30 a week going spare in my pocket. I'd like to set something up for him for the future - it's not going to change his world but starting now is better than not starting at all.
What would you guys suggest ?
Many Thanks.
Re: Investing for teenagers/students
Posted: July 27th, 2018, 9:10 pm
by Chrysalis
Either VWRL (Vanguard global ETF) in a Youinvest ISA or Vanguard global equity index fund in a Charles Stanley Direct ISA. Add 20% bonds if you want lower volatility. Or more if the time horizon is less than 5 years.
Re: Investing for teenagers/students
Posted: July 27th, 2018, 9:55 pm
by Urbandreamer
The trouble with Jabd2001's sugestion is that the costs of the account are likely to not make sense for small amounts (ie £300).
If you can find a bit more ie £800 then it's a different matter. VWRL would be a good, hands off, choice.
For what it's worth I got my 17 yearold daughter interested in her JISA. She's stunned by the return she has got on SMT and is using the "regular investment" process to cheaply buy some shares in SuperDry.
My 14 yearold son decided to buy some shares in Frontier developments (the company behind the new Jurasic park game). A high risk stratergy if ever I saw one, but he'll learn through the experience.
Re: Investing for teenagers/students
Posted: July 28th, 2018, 8:30 am
by Chrysalis
Costs are certainly important. According to monevator.com broker comparison table, both Youinvest and Charles Stanley Direct charge 0.25% platform fee but no additional account fee for ISAs. Youinvest caps the platform fee at £30 for ETFs and charges £1.50 for trades under the regular monthly investment arrangement (£9.95 for ad hoc trades). Fund trades are free with CSD, however they have minimum investment amounts which I can’t remember off hand.
I suggested these brokers specifically because I thought them likely to be among the cheapest for small accounts, and I have personal experience of them.
Re: Investing for teenagers/students
Posted: July 30th, 2018, 10:43 am
by Fenix
Thanks very much for the suggestions - I shall save up his £20s and look into your ideas.