Best investments for the future ?

[Discountbannerprinting.co.uk]

What would be the best investments to leave kids with an income if something happened to the parents, I keep coming back to to the stock market and the main company's like coca cola etc

This investment would need to work without my input and ideally be something that could last many decades.

or even buying a house with short term rent and enough in the bank to pay the bills for a very long time, (this always gives them a home at least) the only issue is in the meantime this generates nothing (but then would investing in dividend stock keep up with inflation away).

 

[Bob Morgan]

'Wheelbarrow Futures' should prove a sound investment for the next couple of decades

 

[estwig]

Me!!

Details available for payment, upon request.

 

[Annoying Donkey]

Teach them how to make money and how to save... Simples...!

 

[Discountbannerprinting.co.uk]

That would be a little hard from my death bed but I shall try and summon the ability from the grave

I understand the plan is to live and teach them the correct way along with offering them a little help, the issue is I want a plan for if something where to happen to me and it would at least help her a little in life.

 

[Mark T Jones]

I'm sure you will appreciate that 'safe' investments tend to be lower yielding.

Government bonds / premium bonds

Followed by a mixed basket of blue chip stocks, gold etc are probably at the safest end of the scale.

Property, bought well, should always produce a yield (though capital value isn't as reliable as people will have you believe)

Alternatively, someone on Facebook assures me that Bitcoin will shortly bounce back and make millions.

 

[Discountbannerprinting.co.uk]

Would 3/4% even beat inflation though, to me it is just making sure that the investment is as valuable in the future

Invest 100k and get 3/4%
keep 100k in the bank and get 0

The issue seems to be the AVG raise in inflation is 3/4% so to actually stop it degrading over time it would only be anything over 3/4% that could be taken out yearly.

Houses unlike bonds seem to increase in rent rates with inflation yearly.

 

[Annoying Donkey]

That would be a little hard from my death bed but I shall try and summon the ability from the grave

I understand the plan is to live and teach them the correct way along with offering them a little help, the issue is I want a plan for if something where to happen to me and it would at least help her a little in life.

I'm sure you know your bible... Teaching someone to fish, versus giving them a fish...

Meanwhile spend your money...

 

[Mark T Jones]

Property has largely out- performed RPI on a historical basis (exceptions apply).

Opinions will very on whether it will continue to do so.

Any professional advisor will be at pains to tell you 'past results are no guarantee of future performance'

Risk reward is pretty linear - safe = small returns - risk = big returns or big losses

 

[SillyBill]

None or all is my approach. I have land, property, businesses, shares, cash, bonds and precious metals. Diversification is such that I don't lose much sleep on the value of any asset class. I learned this approach about aged 18 and have followed it like a religion since. Occasionally tipping the % weightings is about the only thing I change up, which is no more than my gut instinct on where we are in a given cycle for that asset.

 

[Uwe (Invoiceberry)]

The main investments I have made and plan to continue making for my kids are:

1. Invest in their education so they are set up for the future
2. Travel with my kids so they get well-rounded
3. Stockmarket – ETFs. Low fees, no management or worries from my side.
4. (not yet) Properties

 

[japancool]

Gold or Bitcoin.

If you fancy a flutter, Premium Bonds. You might win a million.

 

[MBE2017]

How you invest for your kids depends on your desired outcome.

Personally I wanted control over my pension, and for it to be a tool towards generational wealth, so I use a SASS.

Suits my purposes well, with the added benefit I can use up to 50% of its value for property investment amongst other things, for a small chargeable interest rate.

 

[The Byre]

Forget stocks for the time being - we are in a bear market rally and bear markets are there to take as much money from as many people as possible. You will know when the bears have left the field when the markets are in the Valley of Despair and people are dumping everything in desperation.

Forget buy-2-let because (1) house prices are falling as interest rates rise and (2) inheritance tax.

Gold is a safe bet and if you buy UK coins from the Royal Mint, any increase in value is tax-free and they are easy to move and give to someone with HMRC knowing what you are up to.

We are heading into a recession and you will need all the money for investing when the recession becomes a full-blown depression - then and only then is it time to buy stuff!

Also inheritance-tax-free are farmland and forestry.

 

[DefinitelyMaybeUK]

Gold is a safe bet and if you buy UK coins from the Royal Mint, any increase in value is tax-free and they are easy to move and give to someone with HMRC knowing what you are up to.

Interesting thought ? would anyone be using the DigiGold service as opposed to stacking 1oz bars under the floor boards to avoid the storage fee? :

DigiGold Digital Investments from The Royal Mint

We’ve traded precious metals for 1,100 years. Now you can do it in seconds. Buy, sell and spread your risk, all at the click of a button with our DigiGold account.

www.royalmint.com

 

[HFE Signs]

Gold or Bitcoin.

If you fancy a flutter, Premium Bonds. You might win a million.

Bitcoin?? - Do you really think it will recover?

 

[japancool]

Bitcoin?? - Do you really think it will recover?

Nope. But it's what the cool kids are doing.

 

[Financial-Modeller]

Given your objectives and timeframe, it might be useful to consider the compound effects of costs and tax and work to minimise those.

Perhaps look at low-cost index-tracker funds/ETFs held in an ISA or even a pension for your children.

If interested in direct ownership of shares, search "Dividend Aristocrats" which are US companies that have consistently increased dividends for 25 years. The list includes Coca Cola (KO).

You're probably aware, but it can be less risky to invest over a period of time than to do so on a single day.

Also, consider investing for your lifetime / objectives, and buying life insurance for the kids.

 

[HFE Signs]

Nope. But it's what the cool kids are doing.

The cool kids might become the skint kids - they'll be on here asking us lot to invest in them, like the dude yesterday

 

[The Byre]

Interesting thought ? would anyone be using the DigiGold service as opposed to stacking 1oz bars under the floor boards to avoid the storage fee?

The tax-free status applies to physical British coins only. It is their status as legal tender that makes them tax-free.

Remember that gold is not an investment - it just holds its value, so traditionally a house costs about 200 ounces (or 200 £1 coins weighing one ounce each). After the war, a house in the US cost about $7,000 and gold was $35 an ounce - 200 ounces. Today a reasonable house in most areas will set you back about $340k - 200 ounces again!

People bang on about the value of their boxes made of ticky-tacky and how much their three-up-and-three-down has risen in value after looking at Zoopla, but all I see is the equivalent of 200 ounces of gold.

It is all the other things like houses and cars and cheese and stocks and shares and bonds that go up and down in price - mostly as a result of interest rates combined with some market hysteria! Even those numbers that represent silly tokens that we call Pounds yo-yo up and down (mostly down) in value as desperate governments and central banks create more of the stuff to pay their debts.

Bitcoin?? - Do you really think it will recover?

Warren Buffett called Bitcoin "Rat poison squared!"

In investment terms, that means it is a speculative investment in the form of a special purpose vehicle with securitisation payments backed by rat poison. The ideal financial product for those knuckle-draggers still looking for a free lunch!

 

[Bob Morgan]

200 Ounces of Gold - Not forgetting the 'Pound of Flesh' now required for the mortgage

 

[DefinitelyMaybeUK]

Remember that gold is not an investment - it just holds its value

Yes, true, so what am I missing here - a BTL bought in 2006 for 150K might sell today for 300K if I'm lucky (Nationwide predicts 255K), whereas an equivalent gold purchase at the time for £300 / oz is now £1500, roughly 10% year on year, so the house should now be worth 700K+ (and no tenants to deal with) I'm guessing the moral is that the 2006 housing boom really meant that the BTL was only worth 200 bars after all (60K) and I should of just invested in bars from the outset

EDIT - of course, in the preceding 15+ years the price of gold only increased from £200 to £300, whereas housing saw a far higher growth!

 

[japancool]

In investment terms, that means it is a speculative investment in the form of a special purpose vehicle with securitisation payments backed by rat poison. The ideal financial product for those knuckle-draggers still looking for a free lunch!

Choosing between gold and bitcoin is a simple choice between keeping your money or losing it.

 

[japancool]

a BLT bought in 2006 for 150K

I dunno where you're buying your lunch, but Marks & Spencers do a BLT for about £3.50.

 

[The Byre]

I'm guessing the moral is that the 2006 housing boom really meant that the BLT was only worth 200 bars after all (60K) and I should of just invested in bars from the outset

You've kind of nailed it - 2005-7 were freak years in the housing market and prices were stupidly over-heating. Houses on mortgages shoot up and down in price sometimes when interest payments suddenly double or halve and a £1,000 a month mortgage turns into a £2,000 a month mortgage and people's disposable income vanishes.

Of course, a B2L does pay you rent - gold just sits there and is a frozen-value asset.

 

[Newchodge]

That would be a little hard from my death bed but I shall try and summon the ability from the grave

I understand the plan is to live and teach them the correct way along with offering them a little help, the issue is I want a plan for if something where to happen to me and it would at least help her a little in life.

Insurance?

 

[MBE2017]

Gold value is likely to increase for the next 2-3 years ahead of most other compatibles, history shows during recessions and depressions money rushes into Gold.

With the investments being planned for your children you have plenty of time, so deciding on your level of risk, timeframe etc will all come into play.

 

[marklew]

I agree with a few on here, from what you've said you want your kids to be looked after if you die suddenly, then life insurance is the way to go and fairly cheap monthly payments.

In addition if you have any other income that is just sat in a bank account then that is up to you and your risk v reward and time required to decide where to put it.

Those saying gold, it does not give you a revenue, which you advised you wanted, if this is not the case and you just want an appreciating assets it is something to consider. As someone else mentioned a diversified portfolio is the way to go.

Managed funds just need you to put money in (and you can go tax free in ISAs for £20k a year or in junior isas if you want them in your kids names), then you have property, gold, bonds, you can get 3-4% savings accounts at the moment (the problem is inflation is over 10%) etc. Property can be more intensive than people give credit for, especially if you have bad tenants and no income and need to get them out and then refurbish afterwards after they have trashed it.

 

[WaveJumper]

A lot of sensible advice above, unless your ready and able to manage your own funds I would suggest you need to seek proper professional advice and look at the array of managed funds out there. You defiantly should be maxing out ISA's and there's the option of self investing ISA's where you can pick and choose what you put in, but again this is going to mean a bit of homework.

As mentioned above insurance is a pretty good way to go and the more diverse your portfolio obviously the better. And something to think about, inheritance tax, family getting access to funds etc quite often overlooked when doing your financial planning