23
DIY Investor Magazine
/
September 2016
DIY Investor and guest columnist Dianne P with a very
personal approach to saving for children - all views her
own!
All parents will agree that the well-being and happiness
of their children are up there in their priority list
accompanied by breathing and eating. Along with
good memories of childhood holidays and extravagant
Christmas gifts one thing that we can do for our
children is help them to make a start in life when the
time comes for them to leave the nest. What better way
to start adult life than with a cash injection to help get
the show on the road?
So, where to start, when to start and how to make sure
that the nest egg isn’t a yolk when the time comes.
I’m looking at Junior ISAs here on my laptop, they’re
offering 3%-ish, some more, some less,
I ask myself, what’s the point? 3%! Are you kidding me?
I put a grand in and get 30 quid!
Nonsense, I’d rather spend the grand on a couple of
days in France expanding my child’s cultural horizons,
a much better investment (IMHO).
It’s a tax fee £30 though. No, it’s still a waste of time.
Want to really torment them, why not set up a Child
SIPP? Invest the maximum £2,880 per year (£3,600
including tax relief) from birth to age eighteen and
achieve a 5% investment return, and junior benefits to
the tune of £700,000. When they’re 55.
If you want to invest on your child’s behalf and send
them off into the magical adventure that is their 20s and
30s and perhaps enable them to still be carefree in the
40s, there’s only one answer, speculate; Lucky Jim in
the 2.30PM at Haydock Park, on the nose.
I’m kidding, of course but what would be wrong with
investing outside the box of the JISA that is being
peddled as the answer to the masses, get your kids into
the next Uber, the next Google, the next PayPal.
INVESTING FOR CHILDREN - SPECULATE
TO ACCUMULATE?
Your investment will either perform spectacularly or it
will fall flat on its face, the good news is that it won’t
give you £30 per £1,000 invested.
Additionally, it’s interesting; do it all on your 4G phone
on the 7:26 to Waterloo.
So, where can you take a little bit more risk with your
cash, in pursuit of riches?
Well you could take that £10,000 that you currently have
languishing, doing nothing, in your cash ISA and stick
the lot into Fund Twenty8 from Syndicate Room.
What is it? Its an EIS qualifying fund that invests in
private companies that raise cash on Syndicate Room,
one of the larger equity crowdfunding platforms.
EIS? Enterprise Investment Scheme is a series of
UK tax reliefs launched in 1994, It is designed to
encourage investment in small unquoted companies
carrying on a qualifying trade in the United Kingdom.
Crowdfunding? Isn’t that all pizzas and beer?
Well, no it isn’t, in fact Syndicate Room have a rather
interesting way of being, they have a professional
investor take part in each fund raise on the same terms
as the crowd which has a few consequences.
