The reasons for the choices below will be outlined in the blog and linked to from here.

Investment Objectives

• Provide a meaningful amount of money for my children in their adulthood
• Demonstrate to them the power of investing over long periods
• Provide a starter to their pension
• Give them a leg up on the property ladder by contributing to a deposit
• Minimize investment and transaction fees
• Maximize diversification in holdings
• Require minimal oversight from the parent, close to set it and forget it approach

Funds and Accounts

Each child will have 3 pots allocated.

• Junior ISA (Nutmeg)
• A segregated pot of money in parents Stocks + Shares ISA (Nutmeg)
• Junior SIPP (Fidelity)

Contributions

JISA + Parent SISA

Start with £50/month into each childs investment account, increasing in line with inflation every 6 months

## SIPP

Contribute the maximium allowed for the child for 3 consecutive years as a lump sum each year (£2,880) Receive £720 tax relief each year for a total contribution to the SIPP of £10,800 each.

Asset Allocation

All accounts will be 100% equities. The timeframes we are talking about mean we don’t care about volatility in the short term so not chosing an equity/bond split

• The Nutmeg accounts will use the Fixed Allocation max risk portfolios
• The SIPP will be 100% allocated to Vanguard FTSE Global All Cap Index Fund

Review process

Every 6 months review the constributions to the JISA + Parent SISA to ensure they are in line with inflation.

Ensure the SIPP contribution is maximized each tax year.

Instigate a thourough review on their 14th, 16th and 18th birthdays as to best course of action for the JISA + Parent SISA

The JISAs should be transferred to a cheaper broker when the Nutmeg fees seem excessive.