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    • Home • Advice • Common questions

    Any advice on my children's investments?

    09 December 2021

    Question by GURMEET

    Hi my daughter 18 & son 22 have approx 15k that they want to invest. I was looking at ISA Stocks Shares. What would you suggest and given they can invest up to 20k per year, can they split the investment across different companies as long as it does not exceed 20k. I have ruled out LISA as the return is not great and they will not have access to funds until they are 55 but please correct me if I have misunderstood the rules.

    Answered by Boring Money

    Hi Gurmeet,

    Thank you for your question. If you're looking at a ISA and looking for returns over the longer-term (i.e. 5yrs+) I would look towards stocks & shares ISA, generally with a higher percentage of the portfolio invested into low-cost global equity funds. This way, you don't have to worry about stock-picking and you globally diversified to help spread any risk. The longer the investments are held, the greater the potential for higher capital growth and the less effect any temporary market declines would have.

    Whilst a cash LISA is likely to deliver lower returns than a stocks & shares ISA, if used for a new home purchase after 12 months of opening, it will attract a 25% bonus, which could be very helpful. I appreciate that you have more than the limit to invest, so the right answer could be a LISA and a Stocks and Shares ISA, up to the £20,000 annual limit.

    I hope this helps? Best regards

    Answered by

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    Important stuffHolly and the team have worked in the finance industry for many years but we are not regulated to give you personal financial advice. For every story on this website about a good investment, or something which went up by 10% or made someone £200, we could also share a story about a bad investment, something which fell in value or lost someone £200. We aim to provide general information and pointers – and btw we are totally agnostic about which providers you might pick – but if you have complex affairs, want personalised advice or need specific recommendations, please look at advice pages and see if regulated digital or traditional financial advice would be the best solution for your needs. Boring Money Ltd is a limited company registered in England and Wales under registration number 09459832 and we have our registered office at 10 Lower Thames Street, London, England, EC3R 6AF.
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    Boring Money Ltd is a limited company registered in England and Wales under registration number 09459832 and we have our registered office at 10 Lower Thames Street, London, England, EC3R 6AF.
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