I opened a custodial brokerage account for my son when he was 10. He understands how stocks and dividends work and gives suggestions for various purchases. Now when he gets extra money, a lot of time he gives it to me to invest for him. He will definitely be a millionaire.
I love this. just a little bit right now = loads in the future. We maxed out our one year old son's junior stocks and shares ISA this year with one of the products vanguard offer. If he never touched it until retirement it will be a fortune if all goes well. I made a video about it on my channel, if anyone is interested.
Ken please your advice is needed. My children Jnr ISA stock & share are loosing money (one lost almost £1300) due to Covid-19 I was told. What's your advice on this as I am in the process of moving the remaining funds into Cash ISA.
@@omotee5489 Hi Omo, I hope you don't mind me offering my thoughts here. Make sure you are moving it for the right reasons. If your children have many years to go before this ISA matures then you might decide you have plenty of time to let the stocks markets recover and thus will drive the value of your ISA back up again. Cash ISAs are offering very poor returns and by swapping your stocks and shares for cash you are locking in that loss you are talking about. I also have a jisa for my son and I'm just letting it be for the next 16 years. Everyone's circumstances are different however and I'm not a financial advisor. If you are unsure what to do you should really speak to a professional.
Been saving for my child since he was one. We get child benefit so all that money and what we put in goes in. My son is 8 and he already has £11000. ( More than I ever had in my twenties) Unfortunately the money wasn't being invested correctly as it was with a bank with falling interest rates. I have now open a stock n share jisa. Yes I do worry about him getting it at 18 but it's my job to educate him on finance and hopefully he be wise. Great video
@John Buffalo I am 97 No that is incorrect. Second child gets £13.70. Also if you or your partner earns £50000 or more you won't receive it but if you both earn £49999 you will. To my understanding
I started my kids CTF's from when they were born, I was lucky the government gave me money to start them off. My daughter is 15 my son is 9 I asked my kids if they wanted to cash them in at 18 or carry them on till 25. I was so proud when they both said to keep paying into them. I'm hoping they will keep paying into them once they start working and get into investing. Great advice!
@@TheHumblePenny Hi 👋🏾 Yes I've always told them that I'm saving for them, but only in the last few months have I started to explain how it works with the money I pay being invested in companies and saving for the things you want and debt etc. I use One Family it used to be called Bounty! I remember receiving the pack when I first gave birth and getting a certificate with £150 for my Daughter and €50 when my son was born. My daughters is worth 7k now and I only paid £20 a month for the first 13 years since she turned 13 I pay £50 I wish I could pay more but I'm hoping they will keep it going. I include them in my budget and give them an allowance to cover their needs so they are getting used to managing money. Trying to get them to think of side hustles too! Yeah I love your channel I'm always sharing your videos with my family members💖
Wow can’t believe I didn’t know about any of this. I’m 44 with a 10 year old daughter. Yes sooner is better but at least if I start now for her and us it’s better than not starting! ❤ Thanking God for your channel!🎉
I have 7yr old and twin boy 4yr old. My daugther has nearly £7k in her JISa and my twins nearly £4k and I have been doing this since they were born and I wish every parents can take this steps in securing the future of their children. I have been doing this since they were born and I have no regrets. Many thanks Ken and to your beautiful wife becuase I have learnt alot of things on your channel - God bless and please co tune the good work.
i love how many parents keep posting their experience and numbers.this motivates other parrents more than anything.thank you all and thanks for the videos.
Hi Ken you are really kind and an honest person and your channel deserves to grow exponentially. Your children are very lucky to have you as parents. I wish l had started early as you, mine are 13 and 18 but it is better late than never. Thankyou for this video and you probably realised that l have subscribed to your channel.
Thank you so much for this amazing video. I currently have an ISA for my daughter but I plan on opening a stocks and shares one for her and saving in there instead. This was just the information I was looking for. Thanks you
Absolutely fantastic! And this is exactly why I’m 100% joining the academy. I’m fully committed to educating myself about finances at 30 but importantly making sure my children have this information now and do better than me. Great context as always
Excellent, Betty! Can't wait to see you in there. We'll be doing a major deep dive. There is only so much we can cover on RU-vid as these videos have to be short and we're struggling as it is to stay under 30mins 😆.
Thank you so much for sharing your this. I never thought of invesdting for my children. After watching this video I have open an account for my children to secure the future and better than mine. Thanks
Great content Ken. I need to move away from the Junior Isa's x3 . Every time I see the statements it frustrates me but this is a real eye opener and time for change.
This is great Ken I don't have kids yet but I will definitely be doing this when I have them, though my nephew is definitely young enough at 7 years old so I will discuss this with my sister and share your vid :)
I don't have kids and I don't plan on having kids anytime soon. However, this is such great information to know for when I am ready. Thanks for another amazing video :)
Great to hear that you're not rushing into having kids. It really does change your life in so many ways. Below are interesting articles to read: 1) The Real Cost Of Raising A Child thehumblepenny.com/the-real-cost-of-raising-a-child 2) The Real Joy Of Raising A child thehumblepenny.com/the-real-joy-of-raising-a-child
Very timely video as this is something my husband and I just discussed with our financial advisor! We currently have a CTF for my 9yr old and a Junior cash ISA for the other two kids but have decided to convert all into investment junior ISAs. We aim to pay in their child benefits and each contribute an extra amount to all three jISAs.
I was looking forward to this video. We started investing for our son recently he’s only four months old through our accounts but after watching your video we’re gonna open a sipp for him as well. Thanks both 🤗
That’s super interesting and informative. We invest the kids pocket money. Our eldest one is 7 and she already knows about investing and today she told her little siblings: do you know you can make so much more money if you invest this £5? Small steps take a long way and always very excited when I “meet” like-minded parents. Well done guys! Just started following your channel and love it!
Thanks for this advice the humble penny information I am saving for my 3 children & would love to get them to invest thanks for sharing. I am really enjoying your free 7 day blog course
Great content as usual 😀 funny that you made this video my childrens w8 Ben forms were finally filed yesterday after silly mistakes i made now I'm just doing my research into possible companies to invest in. I was going to open an account with Vanguard as we are currently using aj Bell but I'm unsure with regards to fees etc. Thanks for the information x
I'm sharing this video with all my friends. I'm yet to have my kids but I already have their future planned mentally and this is a great way to make it happen. Thanks a lot for all the valuable ideas in this video. Cheers!
Hi Ken your channel has continually changed my perspective positively in life. Keep bringing it on. I started saving for my kids in a Halifax jisa at 3%interest since last year. Now planning to move it onto a stock and shares jisa with aj Bell. Would you advice investing in funds or shares? Bearing in mind I have 4 jisa account with my 4 kids.
Hi David My pleasure! 😀 Move to AJ Bell is good although there remain other platforms that offer better pricing for a JISA. Long term, it's best to build a portfolio from funds. The more passive, low cost and global the better.
Another fantastic video Ken, thank you. My children are the same ages as yours so feeling very inspired! Do you have a Junior S&S ISA AND a Junior SIPP for both your children? My children both have a cash ISA but the interest rates aren't good so I'm keen to explore these other options, thanks ☺️
Hi Sarah, Great to hear! 😀. Yes we have both accounts. I'd highly suggest getting at least one of them to start. Cash ISA value is destroyed by inflation. It's the silent assassin! You need your money working harder by being exposed to other riskier assets.
@@TheHumblePenny thanks for this. I will absolutely be looking into at least one of those options. I am keen for my children to have a solid financial understanding to stand them in good stead for their future, just such a shame I wasn't given this wisdom!!
Great video, recently discovered your channel and have been binge watching from the very beginning. My children are 14,11,8. We pay small amounts into high street bank ISA’s which now have rubbish interest. Am I to late to start investing money for them instead? I also worry about them not having the same amounts when they each reach 18. What do people do to keep it fair or do you not worry about that?
Great video! Thankyou! My children has cash JISAs with NS&I 5k each but in their Vanguard S&S JISA only a few £. Should I transfer the cash JISAs to their vanguard JISAs? They are 10&12
I started a SIPP for my son when he turned 2 (now 4), investing the full £300 per month. My intention is to continue to invest on a monthly basis till he turns 18 and then just let the money continue to compound on itself until he retires. Based on a 7% net annual return, at 65 the SIPP will have a value of more than £2.5 million. Not a bad return on a total investment from me of just £46,080.
Careful. A JSIPP It may not be the best option in the long term. While it is tempting to think what 65 years of tax free compounding can grow into, as the laws stand at the moment you will likely run into lifetime allowance limits quite early if you start aggressively so early. This will also prevent them from being able to take full advantage of both employer matching and their own tax savings when they are of working age themselves, perhaps during their peak earnings years. Consider putting at least some into a J-ISA instead.
Van Dieu. The lifetime allowance is currently £1.055 million and rises each year with inflation. If this continues, assuming 2.5%, LTA shouldn’t be an issue. I’m not concerned with my son ever needing to contribute to a pension in his lifetime.
@@BENGRAHAM11 That's an admirable goal, but it needs to be balance with practicality and reality. Hopefully you son will grow into a productive member of the workforce. Suppose he earns a nice 6-figure salary but and his employer is willing to match 10%.. he would effectively be getting a 300-400% return on investment by contributing from his own salary at the marginal rate of tax and with employer match. But if he's already on track to meet hit the LTA then you are basically condeming him to pay 52% marginal tax rate. Yes, having a huge pension pot thanks to your dilligent parents early on in life is a nice problem to have, but it is still a problem nonetheless.
Great video. Just concerned on the impact of fees on what I want to choose. These have such long term impacts on the potential gains for my kids investments. Just been reading and listening to work by Jack Bogle. I'm in Ireland so options arent wouldn't be as plentiful as in the UK.
Is it easier / simpler to invest in a index fund instead of individual stocks ? Big thank you for the videos you create, keeping them easy to understand and interesting. 👍🏼
I save £100 pm into a high interest account which then I'd transferred at the end of the year into a standard savings account but I'm considering a SIPP, JISA or trust. I was leaning towards the SIPP but advisor told me to bear in mind if child becomes a high rate tax payer, they may not thank me if I've used up most of their lifetime allowance meaning they cant get pre tax benefit of offloading. Currently about 1mil limit including returns as part of that, as I understand it, but could change. I had never thought about anything like that as I'm from very humble background.
I'm going to start investing for my youngest today. My other two children are already over 18, even though I did not invest for them directly I saved more than 90% of their child benefit for them and now they both have over 10K each. If I had invested that over 18 years their funds would have been much more.
Hi Ken, I love your videos, what would you suggest for setting up my nephew, my younger sister has just had a baby and whilst I want to set him up with a JISA, I read that each child can only have one JISA, is this correct?
Do you have any recommendations on good Junior SIPP providers with low fees, who have you used? I’m keen to set one up but there does not appear to be as much choice of providers as you get with JISAs. Thanks for the informative videos.
@@TheHumblePenny Would also be interested how you advise business owners to structure their finance. Most cap their salary/dividends at 12.5k+37k which makes it hard to actually fill a 20k ISA.
I’ve started investing money into my child’s pension as it gives me assurance it’s not going to be taken out at 18 to pay for a holiday. It gives me assurance that if life doesn’t quite turn out the way she hoped it would be financially she’d have some back up funds on retirement. Time is what she has to allow funds to compound and ride out the market …that’s my theory anyway
are you able to sell amazon for example and buy tesla? just trying to understand if we can take profits and reinvest in another stock in junior stocks is a?
Please I have 13 year old son and a 8 year old son and I have never invested for them before,please is too late to start investing? and please which type of investment is good for their age?
Can you do all 3? And say you had £300 p/m to invest for them, could you split £100 into each investment strategy? And would that be beneficial, or better to go for one? Thanks Ken 👍🏻
You can do all 3. Although saying that, it's important to be aware of the limitations of each one whilst being aware of the ultimate purpose of each one e.g. Bare Trust being most useful for Tax Planning, etc.
I have been saving for my son and my daughter since they where born. It's not a lot but we save what we can. So far I haven't invested but I've decided now where I'm going to invest the money and I have put a plan into place to do that this year. They are almost 5 and 1. I also have an easy access savings account where I put birthday, Christmas money ec
@@TheHumblePenny I have finally taken the leap and invested a chunk of the children's saving. The remaining I will drip feed that in through the year. For me taking the plunge financially is hard. I received zero financial education from my parents. In fact they are terrible with money always had debt (they had their house repossed a number of years ago also). So for me educating myself and raising my children with good financial foundations is essential
Hi Ayo, Great question! I unfortunately cannot make recommendations like that as it's "Financial Advice". I will, however, be a lot more candid with folks in our membership community about many things. Feel free to check it out: thehumblepenny.com/FJAlist Please ONLY join the list if your long term goal is for Financial Independence. We're building a truly supportive Community and really only want the right people for the journey 😀
Hi, I am new to your block and also new to stock investing. Now In order to diversify my portfolio, I have been considering investing in wines. I an a wine drinker, but know nothing about investing in it. Please any tips on how I can best do this?. I intend to put 15% of my investments in to wines
Hi Felix We know nothing about wines specifically but know for certain that you need to understand the wine market and how one derives a return from it. You can buy specific wine stocks or ETFs as a starting point.
Good question. What are they charging you for a Junior ISA? Plus, they'll likely not have a large diversified range of products i.e. ETFs, Index Funds or single stocks. I'd say focus on costs and access.
I’m 15 right now turning 16 in April. If I open a Vanguard account right now and put in like £200 a month and leave it until for like 10years will I have made a good amount of money ?
Are. These scenarios based on the money being in a stocks and shares investment isa? What level of risk would it need to be set at low medium oor high xx
@@TheHumblePenny thank you so much. Wishing you and your family all the very best foor 2021. I'm a new subscriber today. Can't wait to watch more from you xxx
I simply have a pie on my T212 account and add £25 a month going in for them. Will pass that cash over to (hopefully) their own T212 account when they're in their mid twenties.
Hello, would you suggest I take my children’s savings out from there bank savings account and put it all into a junior index fund and top it up each month?? Advise please.
It's most definitely earning below inflation in that savings account. Personally, I wouldn't leave a penny in a low earning savings account. I'd have it invested in equities.
Hi, I just wanted to check maybe I am misunderstanding but it seems you are saying that a grandparent can put money in a bare trust and immediately it won't incur inheritance tax. That isn't correct is it, like with most gift it has to be given 7 years before death not to incur inheritance taxe?
Hi Rodney, Thanks. I realised later that that very point wasn't clear. Tax free elements are the current £3,000 per donor. Amounts above that get caught up in the 7 year rule. The main advantage with contributions coming from grandparents is that any gains or income will be taxed in the hands of the grandchild rather than the grandparent. I'll make this point clearer in the video notes.
I’m 16 right now, 17 in April, I’ve got some money saved up from part time work and I’m looking into investment, what can I do to get into this. Thank you.
I think it's worth stating that our parents did not have the opportunity to invest for us. There was not the platforms or products around that was accessible to the average person on the street. Investing really for the masses didn't start until Margret Thatcher started selling off and launching stock sales. Eg selling B T. Ask sid TV ad. I agree however that it's a good thing if you can to do. Other note is that whilst one thinks their kids are going to be responsible at 18 ... Who knows they could blow it all on drugs, drink or something else. I do have concerns about handing over the large sum at 18. I have invested for my daughter and started a pension. She has more than I do currently. Which again is another lesson. We do need to think of ourselves first... To some extent
I've also got to say but your kids are still very young, you have no idea what they will turn into at 18. We all do our best and have faith in our kids, most do, but we do not know. I did not know my daughter was going to develop a mental health / neurological condition when she was 7 it wasn't apparent.
Chioma, kedu? You need to do it via an investing platform where you can buy shares. E.g. Hargreaves Lansdown, Interactive Investor, etc. We use Hargreaves Lansdown. If you're want to open a Junior ISA there, please use our referral link below: thehumblepenny.com/HLJISA
Are you igbo? I have been saving my children child benefits from birth and put some money into their account. I'm building legacy for them. This junior sipp and bare trust sound interesting Thank you for this teaching. Please more information on bare trust
