"Self-managed" Investment options for 16 & 18 year olds

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AndroidMan

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My two kids are showing an interest in investments, pensions etc.
Both are sensible (I am lucky) and do understand the benefits of starting early.
Neither are earning, so no point in setting up a pension (right?)

They have a good few thousand to hand built up from gift allowances over the years and I do intend to try and continue that, so there will be a few thousand being added each year and with potential inheritances etc in coming years there are potential other amounts coming their way.

Are there recommended low-fee options for them, similar to a pension where they can review and select funds, access online etc?
I want to get them into the good habits early.

Their money is in deposit accounts right now, I am not interested in the state savings options etc. it is more a pension type of thing I am thinking of.

I understand there may be limitations on the 16 year old though until they reach 18.

From my side, mortgage is paid, I am maxing out my own pension, and I have money aside for their further education, so no benefit in me using the money instead of them.
 
Interested in responses. I only have my google searches. Bank of ireland has regular per month savings for 16 year old at 3% liable to DIRT. My son turns 18 in August so I guess it is some share representing USA economy (Berkshire hathaway brk.b? Investing in single company to avoid mutual/deemed disposal rule) So he can harvest 1270 cgt tax free allowance. Life assurance style companies have 1% stamp plus 41% of benefit taxed with 8 years deemed disposal investments ie no advantage for non earners, except the life assurance company does tax paperwork. Can invest in mutual funds with life assurance with no paperwork. Your children could go for high dividends shares, dividends taxed as income. I could mention life assurance company I use but that would be advertising, I am not sure it's the best (only went there as it had a gold fund) and it is active investing, cost 1% and change. 1% AMC, additional .1% on top depending on the fund (.1 does not sound right too low). Also best buy term deposits liable to DIRT. Similar choices to adult except small numbers so 1270 CGT useful and small income so dividends encouraged. Trying to put my situation spin on it: wife conservative so about to put extra fully taxed after pension money in bank of ireland for 2 years at 2.96% liable to DIRT. (Rather than other deposit alternatives where you can get up to 4% with online options.) Some money in cash, some money in USA stocks (know about USA over 60,000 estate tax problem). My soon 18 year old son does not have a clue, conservative though will choose almost index like stocks, probably go with stockbroker for 1270 CGT and only small amount of money to lose in any crash.
 
That is a lot of words :)

I would rather not add in the complexity of tax returns etc if possible as well. I know cgt would apply if they cash in, but they would not plan to do that, at least for now.
 
I / he would have to pick out a stock broker for small trades. I picked out degiro for a more serious stockbroker for larger trades.

Zurich does an investment bond without early encashment problems. Same sort of life assurance conditions. About 1% management fee. 1% government stamp. 41% tax on benefit. 8 years deemed disposal they do the tax paperwork. Fairly wide choice of mostly active equity funds. Life assurance I have is lump sum (over 5000??) and put in per month (over 100). Bond I have not looked into if there is a per month direct debit. No tax advantage.
Red Baron said:
Interested in responses. I only have my google searches. Bank of ireland has regular per month savings for 16 year old at 3% liable to DIRT. My son turns 18 in August so I guess it is some share representing USA economy (Berkshire hathaway brk.b? Investing in single company to avoid mutual/deemed disposal rule) So he can harvest 1270 cgt tax free allowance. Life assurance style companies have 1% stamp plus 41% of benefit taxed with 8 years deemed disposal investments ie no advantage for non earners, except the life assurance company does tax paperwork. Can invest in mutual funds with life assurance with no paperwork. Your children could go for high dividends shares, dividends taxed as income. I could mention life assurance company I use but that would be advertising, I am not sure it's the best (only went there as it had a gold fund) and it is active investing, cost 1% and change. 1% AMC, additional .1% on top depending on the fund (.1 does not sound right too low). Also best buy term deposits liable to DIRT. Similar choices to adult except small numbers so 1270 CGT useful and small income so dividends encouraged. Trying to put my situation spin on it: wife conservative so about to put extra fully taxed after pension money in bank of ireland for 2 years at 2.96% liable to DIRT. (Rather than other deposit alternatives where you can get up to 4% with online options.) Some money in cash, some money in USA stocks (know about USA over 60,000 estate tax problem). My soon 18 year old son does not have a clue, conservative though will choose almost index like stocks, probably go with stockbroker for 1270 CGT and only small amount of money to lose in any crash.
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Stanardlife/vanguard life assurance might be a cheaper more passive based option. I have not investigated.
 
Cannot comment in relation to shares/investment products but have had the bother of even accessing decent rate savings accounts for my under 18’s as a result I just put their money into my accounts until maturation. While not ideal in terms of moving money around it is a bother that there does not even appear to be any rates available to them.
 
There are invest your 3000 small gift exemption in your child's name products but you still pay 41% tax. Not worth the bother if your child is already 16. There are fancier options trusts which your child can only cash in at 18/21.

Berkshire hathaway brk.b is handy as there are no dividends. No tax paperwork until sale/CGT except remembering buying price.

As I said bank of ireland monthly saving is open from 16 years old. However 3% return before DIRT is nothing special.
 
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