Comments on: What to give a newborn niece?

By: The Investor

The Investor — Thu, 01 Oct 2009 14:58:18 +0000

@Christopher — I believe some investment trust saving schemes allow very low monthly payments, though I don’t know if they’d go as low as £10 a month. Another possibility would be something like a Halifax Sharebuilder account, where you could invest £100 once a year and buy the FTSE 100 tracker (code ISF) for £1.50 using the Sharebuilder dealing option.

I’m not familiar with opening the investment in someone else’s name however, so you’d have to ask the suppliers how to do it. You’d also not be taking advantage of the Child Trust fund tax advantages.

I have veered towards Child Trust funds again, so hopefully I’ll look into them soon. *Surely* they are set up to allow low-ish ad hoc payments from friends/relatives…?

By: Christopher Delaney

Christopher Delaney — Thu, 01 Oct 2009 11:19:08 +0000

I have found myself in the same position as yourself, however I was wondering if you knew of anyway of investing money for my neice in some form of shares but with only making a contribution of around £100 once a year?

By: The Investor

The Investor — Thu, 10 Sep 2009 20:11:38 +0000

As an aside, apparently Australia has great fundamentals for the long-term, which is currently being reflected in the strength of the Aussie dollar (though to my untrained eye it always seems to go up and down in cycles). English speaking population on the doorstep of Asia with a lot of space and bags of natural resources – you can see where they’re coming from! Climate change could be a problem though.

Thanks for the thoughts guys.

By: Nicola

Nicola — Thu, 10 Sep 2009 19:11:05 +0000

I bought my eleven month-old nephew shares in an index fund that tracks the Australian sharemarket when he was born, and I’m adding $NZ 1000 (£420) each year on his birthday. We’re New Zealanders, but I couldn’t in all conscience buy him a fund that tracked the New Zealand sharemarket, so I compromised on Australia. I think it’ll have accrued a tidy sum by the time he turns 18.

By: Neal@wealthpilgrim.com

Neal@wealthpilgrim.com — Tue, 08 Sep 2009 12:41:01 +0000

While I agree that cute kids get spoiled rotten, I would risk it and go for the clothes.

WHY?

1. Practicle. Even babies must wear clothes at some point.
2. You benefit by seeing your gift-dollars at work.
3. The child gets positive reinforcement by in fact, looking cute – at least when she is wearing your gift.

Forget toys – she doesn’t need anything. When that baby sees everyone going ga-ga over her in that cute little outfit, it’ll boost her self-esteem and that can pay much greater dividends than a bond or mutual fund.

Eh?

By: The Investor

The Investor — Tue, 08 Sep 2009 07:43:14 +0000

Oh dear guys, maybe we should form some sort of support group!

By: FB @ FabulouslyBroke.com

FB @ FabulouslyBroke.com — Mon, 07 Sep 2009 17:13:31 +0000

I am with you on giving money and something that is able to benefit from compounding over time.

I wouldn’t give clothes, toys or anything else, because cute little kids will get SPOILED ROTTEN from everyone else they meet. Even strangers.

When I was 18, I wished someone had bought me bonds for my first and subsequent birthdays instead of toys

By: Mike Piper

Mike Piper — Mon, 07 Sep 2009 16:50:29 +0000

Eh…I’m the same way. Every time, my gift is a check for a 529 contribution. (529 plans being the US version of college savings accounts.)