Five myths about investing for children
By Kirsten Hastings, 22 Aug 16
With the new school year about to start in the UK, Fidelity International’s investment director for personal investing, Tom Stevenson, debunks five myths about investing for children.
“Yet another myth. Just like you, the government would ideally like to see your now adult child continue to save. That’s why the account is automatically converted to an adult Isa.
“This way, it’s hoped that if the money isn’t needed for anything else, it will continue to grow and be added to. Your adult child will now be free to fully invest in a regular stocks and shares Isa as well as adding to anything they hold in a cash Isa.
“Before that point, once they reach 16 they can also contribute into the adult equivalent of a Cash Isa (although not an adult ttocks and shares Isa yet), up to the £15,240 limit in the 2016/17 tax year. This is in addition to any money paid into their Junior Isa.”
Tags: Fidelity | Investment Strategy
