Help picking a long(ish) term investment product for gift to adult child

D

dvpower

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I'm looking for some advice/recommendations for a savings/investment product, funded by me but for my (adult) child, that would suit these criteria:

- A regular investment of e500 per month over about 10 years.
- The goal would be to save towards a house deposit (or something along those lines).
- Looking for something simple, requiring little management.
- A reasonable appetite for risk, so maybe some kind of broad-based tracker fund.
- Low charges.

Can someone give me a steer towards individual products I could look at or companies that provide them.
 
Set one up for my daughter in her own name via Zurich Life.

101% allocation (so Government Levy paid by ZL) on all regular and single contributions to the plan and no early exit charges at all.

Decided to do 50/50 on Blackrock Index Tracker (Article 6) and International Equity (Article 8) to educate her the effect (if any) of passive/active on their platform.
 
Hi @GSheehy

Is there a min/max investment amount and a min/max horizon for holding?

Also, can I ask is it a once off lump or periodic contributions or combo of both?

Thanks.
 
To avail of 101% / 1% AMC there's a lump sum at outset required (€5k) and can then contribute min €100pm. But, there's some flexibility on the lump sum on a case-by-case basis eg. If someone had €3k and was going to contribute (say) €300pm.

No min time horizon and it's an open-ended contract.

Can add periodic lump sums (min €500) and contribute monthly. Monthly contribution can be increased/decreased (min €100) or stopped /restarted at any time.

AML is a constant on adding lump sums so source of funds/account and updated ID and proofs of address are regularly requested.
 
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messyleo said:
Would suggest capping out at 3k per year so it counts as small gift exemption
Standard Life's Global / Euro vanguard index funds maybe? They do all the tax etc for you
Click to expand...
Or, potentially, 3k from each parent = 6k per calendar year, handily matching the planned 500 per month.
 
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Yes, but not to the same plan (that I'm familair with) as the parents. And the adult child shouldn't be adding their 'own' money to it either. I think it's best, from a clear trail of source/reason for gift.
 
GSheehy said:
Set one up for my daughter in her own name via Zurich Life.

101% allocation (so Government Levy paid by ZL) on all regular and single contributions to the plan and no early exit charges at all.

Decided to do 50/50 on Blackrock Index Tracker (Article 6) and International Equity (Article 8) to educate her the effect (if any) of passive/active on their platform.
Click to expand...

was it this you used ?

Child Savings Account | Saving For Children's Future | Zurich

Child Savings Plus from Zurich is a child Regular Savings Plan suitable for parents or god-parents who want to save for their children's future.
www.zurich.ie www.zurich.ie
 
Yes.

But, grandparents have to be resident in RoI, policy is done under Deed of Asignment (issued in name of grandparents and assigned to grandchildren after policy is issued), DoA applies to under and over 18s (it's normally only U18s if kids living here), fund choice cannot be altered once policy is issued.

You'd want to flag the location of the beneficiaries if setting this up.

You'd need some tax advice in New Zealand as to whether there would be any tax implications for the recipient in that jurisdiction.
 
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Forget about CAT.

The parents should just maximise their own finances e.g. clear mortgage, maximise their pension contributions and then they should be in a good position to help their child/children when the time comes. This also makes sure that the child uses the money for the use for which it was intended. If the child has €30k in the bank, they could easily just quit their job because someone looked crossways at them.

If the parents have maximised their own finances, or if you insist on giving the money now...

I would gift them €3k each from mum and dad.
Buy one share directly with each €3k
A bit unbalanced at the start but after 5 years will have a reasonably diverse portfolio of 10 shares.
They will learn a lot about the ups and downs of stock market investment
When they are getting close to buying a house, then convert them to cash.

Brendan
 
Brendan Burgess said:
Forget about CAT.

The parents should just maximise their own finances e.g. clear mortgage, maximise their pension contributions and then they should be in a good position to help their child/children when the time comes. This also makes sure that the child uses the money for the use for which it was intended. If the child has €30k in the bank, they could easily just quit their job because someone looked crossways at them.

If the parents have maximised their own finances, or if you insist on giving the money now...

I would gift them €3k each from mum and dad.
Buy one share directly with each €3k
A bit unbalanced at the start but after 5 years will have a reasonably diverse portfolio of 10 shares.
They will learn a lot about the ups and downs of stock market investment
When they are getting close to buying a house, then convert them to cash.

Brendan
Click to expand...
I like this idea. Do you mean the child should buy a couple of different shares @3k each per year or parents should do it on their behalf in Revolut/Degiro or somesuch? How does the gift exemption come into then assuming kids can't hold brokerage accounts in their own name.
 
They are adult children so they can open accounts in their own name.

So the parents give the child the cash.
The children then buy the shares.

Brendan
 
Brendan Burgess said:
If the parents have maximised their own finances, or if you insist on giving the money now...

I would gift them €3k each from mum and dad.
Buy one share directly with each €3k
A bit unbalanced at the start but after 5 years will have a reasonably diverse portfolio of 10 shares.
Click to expand...

Why not 10 shares directly at €300 each?

I like this approach, but it involves a bit of management, choosing the stocks and doing the transactions, and with the proximity of it, it might be tempting to start making decisions as the market does what it does.

It offers an opportunity to minimise the CGT bill by 'bed and breakfasting'?
 
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