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insurance settlement investment
chris_smith - 3/2/15 at 08:22 PM

thought id get some ideas from the "Collective" on here,

my son was knocked over 4 years ago, was the most traumatic moments of my life but thankfully had no lasting damage and has fully recovered apart from a small scar on his leg,

the insurance settlement has just been finalised and will automatically be paid to the court to be held until he is 18, and will accrue interest at a rate of 0.5% which as the judge pointed out is pitiful

but i was instructed by the judge that I can go back to court to have the funds released so long as they will be invested until he turns 18

doing some browsing JISA's only allow upto £4k initial investment if im correct? but the amount he has is almost double this

so my question to you guys is, are there any investment opportunity's with a fantastic interest rate that cant be touched until he turns 18?

thanks in advance

Chris

bi22le - 3/2/15 at 11:07 PM

Can you realise 4k a year and take out two?

Is more risky but last year i invested in ETF. They are grouped shares and can be tax free.

My overall average return was 15% with one of them going up by 25%.

Ridiculous!

If i hit that every year i will be a millionaire by the time i am 50!!

Slimy38 - 4/2/15 at 09:50 AM

4K in an ISA, 4K in 'another savings account', then next year move the 4K into a second ISA? I can understand the investment restriction, but they should be ok for you to move them between investments?

cliftyhanger - 4/2/15 at 10:08 AM

Is the issue that the funds have to be "ringfenced" until he is 18? That may be tricky, but a trust may/should be possible?
As to the court interest rate, it must be tied to the BOE base rate. Hopeless.

rodgling - 4/2/15 at 11:00 AM

quote:
Originally posted by Slimy38
4K in an ISA, 4K in 'another savings account', then next year move the 4K into a second ISA? I can understand the investment restriction, but they should be ok for you to move them between investments?


Agree, this seems like a good approach if you are allowed to do this. (I think you can add £4k to a JISA each tax year, so you only need the one JISA account).

mark chandler - 4/2/15 at 11:28 AM

Abbey current account beats an ISA on interest these days!

Held in trust, is there any reason why this should not be you? It just says do not pinch the money for yourself, unscrupulous people will convert it into rent and use it to offset school trips, college etc so just register in a couple of names so you are not at risk.