Author Topic: Advice - 16 year old daughter has 100 a month to invest  (Read 1236 times)

Aurora

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Advice - 16 year old daughter has 100 a month to invest
« on: June 19, 2017, 03:53:27 AM »
Hi, my 16 year old daughter has just started an apprenticeship in the UK. She wants to start retirement saving straight away and has 100 per month to invest for the next couple of years. Once qualified she'll be able to increase contributions up to 300 a month.

Vanguard in the UK allows monthly investing from 100. My daughter isn't really interested in learning about investing right now so looking for ideas to start her stash. Im drawn to putting everyone in Vanguard VWRL as she's so young and has time on her side but perhaps a Target Retirement Fund or a Life Strategy 100 or 80 is more suitable.

Any opinions welcome.. Thanks


cerat0n1a

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Re: Advice - 16 year old daughter has 100 a month to invest
« Reply #1 on: June 19, 2017, 06:57:06 AM »
I would probably want to think about the various wrapper options before the specifics of which fund or whatever. Does her employer offer a stakeholder pension (she could get 20% tax credit, even as a non-taxpayer)? Is it worth her holding on until she is 18 and getting the lifetime ISA (which gets topped up by 25% pa by the government and lets you withdraw the money to buy a house instead of a pension)?

Aurora

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Re: Advice - 16 year old daughter has 100 a month to invest
« Reply #2 on: June 19, 2017, 01:05:52 PM »
Hi Pencil Stache,
thanks for the reply. She's got a junior ISA (in my name at the moment) with a few hundred in it. I've been trying to get my head around the workplace pensions and it looks like employers don't have to offer them until 22years of age. Perhaps i'm wrong about this though. I would like to her start building her stash now rather than wait that long. I'll check out the lifetime ISA, the 25% Gov top up is interesting.