Hi Stocko's,
I have started a SIPP for a new family member, the idea is to manage the Sipp till the child is 18 then hand over to them.
I chose a Sipp as other investment vehicles have the issue of the 18th year and the asset is then passed by law to the recipient, and if I am still around I dont want the parents to blame me if the investment is wasted.
I will be putting £2880.00 in every year, plus HMRC tax relief, plus dividends and any capital growth all reinvested.
I do not want to take any great risks ,steady and boring will do fine, I am currently considering Chesnara (LON:CSN) Chesnara or Phoenix PHNX as possible long term picks for the first say 5 years and i would invest in the same stock for that period.
What stocks, Bonds, Etf etc would you pick? This would not be a trading account rather more like a HYP on the model by Stephen Bland.
Thanks.
This is an excellent idea. Not sure about Chesnara (LON:CSN), I have recently bought Aviva (LON:AV.) which is in that sector, it is larger, has higher dividend and higher Stockopedia scores. Others I would consider are Lloyds syndicates Beazley (LON:BEZ), Lancashire Holdings (LON:LRE), Hiscox (LON:HSX), possible takeover candidates. If it was me I would be splitting the investment into 2 different sections. You may have £3,600 each year as Govt. will add 20% tax relief.
