Stock Portfolio in Trust for God Son

PH4T

I would like to set up a stock portfolio for my God Son and am wondering what is the best way to do it.

I would like to make a contribution to the portfolio on his birthday each year.

I assume I would choose investments for him for now and perhaps when he reaches 18 years of age he could take control.

Does anyone know how I could go about this?

Helpneeded86

PH4T wrote: »

I would like to set up a stock portfolio for my God Son and am wondering what is the best way to do it.

I would like to make a contribution to the portfolio on his birthday each year.

I assume I would choose investments for him for now and perhaps when he reaches 18 years of age he could take control.

Does anyone know how I could go about this?

While this might be a good idea. Do you think a 6 year old will appreciate it. Now maybe you still intend to give a fun present but if not have a good think about it.

PH4T

Helpneeded86 wrote: »

While this might be a good idea. Do you think a 6 year old will appreciate it. Now maybe you still intend to give a fun present but if not have a good think about it.

It's a 1 year old and I'm not into fun presents

His father will appreciate it.

Helpneeded86

PH4T wrote: »

It's a 1 year old and I'm not into fun presents

His father will appreciate it.

Ah ya look I dont disagree with the idea as such. I get your point that he is 1 I am saying that when he is 3-17 you really will be the boring Godparent. Imagine been in the house Christmas day.... ! Im just saying from experience.

Also the chances are you make a smart present choice for 18 years and the kid just blows the money stupid when he gets it. I 100% have experience on this as at 18 he is not going to want to keep up a stock portfolio. If the kid has 100% control of the fund at 18 there is ahigh probability he may blow it.

I know the above are not really the feedback you require but i think you should consider them

Edit: Just a quick Q actually would i be correct to assume you dont have kids or nephews/Nieces?

PH4T

Helpneeded86 wrote: »

Ah ya look I dont disagree with the idea as such. I get your point that he is 1 I am saying that when he is 3-17 you really will be the boring Godparent. Imagine been in the house Christmas day.... ! Im just saying from experience.

Also the chances are you make a smart present choice for 18 years and the kid just blows the money stupid when he gets it. I 100% have experience on this as at 18 he is not going to want to keep up a stock portfolio. If the kid has 100% control of the fund at 18 there is ahigh probability he may blow it.

I know the above are not really the feedback you require but i think you should consider them

Edit: Just a quick Q actually would i be correct to assume you dont have kids or nephews/Nieces?

I appreciate you are trying to help but I am not looking for your opinion on this.

I don't care if he blows it or not, I would just like to get him used to looking at the stock market from an early age.

Helpneeded86

PH4T wrote: »

I appreciate you are trying to help but I am not looking for your opinion on this.

I don't care if he blows it or not, I would just like to get him used to looking at the stock market from an early age.

Ya dont get me wrong I 100% like what you are doing and it is a hell of a lot more beneficial than the innocents who buy prize bonds.

I would myself consider it in the future if i was in your situation but more so for the first few years. I would be interested to see responses as to how this can best be done. I would especially wonder how the top ups would work as I assume you would not be giving much more than €100 on a birthday or xmas.

I obviously dont know your financial situation but how much do you intend on opening the account for as I cant imagine myself giving more than €500 for a god child.

PH4T

Helpneeded86 wrote: »

I obviously dont know your financial situation but how much do you intend on opening the account for as I cant imagine myself giving more than €500 for a god child.

I would say the small size will restrict my options. I could in theory give him €50 for birthdays and €50 for Xmas. So €100 a year. I suppose I could seed 18 years in advance and put €1800 in now.

That is still very small so just wondering what is available at that kind of contribution.

Only because I have heard them advertising recently, would something like Davy's offering suit this?

martyoo

I think it's a really good idea. As he gets older you could review his portfolio every year. Nice way to introduce him to to it. He might develop an interest in it as a result.

You need something that you can drip feed small amounts into, in your case twice a year and that doesn't involve large maintenance fees or costs.

I am with Keytrade and they have a "Fund Investment Plan" which you can use to set-up your own fund which you can then contribute to periodically.

Some more info here

Link

I think RaboDirect have something similar.

The main thing I would say is be sure you understand the fees involved.

Helpneeded86

PH4T wrote: »

I would say the small size will restrict my options. I could in theory give him €50 for birthdays and €50 for Xmas. So €100 a year. I suppose I could seed 18 years in advance and put €1800 in now.

That is still very small so just wondering what is available at that kind of contribution.

Only because I have heard them advertising recently, would something like Davy's offering suit this?

You do realise there is a Fee of €80 per year on that account? Assuming im reading correctly.

€15 per purchase.

Capital gains 33%.

That is €1440 over 18 years. Add your two €15 charges per year €540....

Think ive said enough.

Now im sure there is much better options out there but others will have to guide you.

PH4T

Helpneeded86 wrote: »

You do realise there is a Fee of €80 per year on that account? Assuming im reading correctly.

€15 per purchase.

Capital gains 33%.

That is €1440 over 18 years. Add your two €15 charges per year €540....

Think ive said enough.

Now im sure there is much better options out there but others will have to guide you.

I think I will seed the account with €1800 in advance and perhaps only buy 4 or 5 stocks. So the €15 per purchase would be ok. But the €80 per year Maintenance fee rules out the Davy option.

I actually live in the UK and over here we have a Stocks and Shares ISA where you don't pay tax on gains. Is there anything like that in Ireland?

PH4T

martyoo wrote: »

I am with Keytrade and they have a "Fund Investment Plan" which you can use to set-up your own fund which you can then contribute to periodically.

Ideally I would rather invest directly into stocks.

Now it might be that €1800 is too small for a stock portfolio and I will have to go down the funds route.

Grecco

€1800 is too small for the funds route as well.
Why not use a simple termed deposit account from your local an friendly bank.

PH4T

Grecco wrote: »

€1800 is too small for the funds route as well.
Why not use a simple termed deposit account from you local an friendly bank.

Because the point is so that he can become familiar with investing in the stock market from an early age, not to generate a return.

Rabo's website says you can start with €100 so I don't see how €1800 is too little.

Grecco

PH4T wrote: »

Because the point is so that he can become familiar with investing in the stock market from an early age, not to generate a return.

Rabo's website says you can start with €100 so I don't see how €1800 is too little.

Then it would be a lot cheaper to go and buy a half dozen books on the subject. Have a read of them first yourself as well.

PH4T

Grecco wrote: »

Then it would be a lot cheaper to go and buy a half dozen books on the subject. Have a read of them first yourself as well.

Please stop commenting on this thread if that is all the input you have.

Helpneeded86

Ok I actually consider what you are doing a good idea in a sense. The way you are trying to do it I disagree with. I was lucky enough to fall into First active shares thanks to my father in my mid teens. The payout came when i was about 18 but it did get my interest in stocks and I regulary checked the price.

I think you can buy stock from certain brokers for €35 id say buy about €500 to start off.

Then maybe buy add ons at communion and Confirmation.

Dont be the god father every kid is going to hate and his parents will have to explain why he doesnt get presents off you while his sister is is getting gifts off two of her god parents.

You only get to do this once with the kid do it right.

PH4T

So I suppose the two things I need to find are:

1. A low cost way to invest in stocks
2. Can the account be set up in his benefit?

I'm guessing the sums involved are too small for the second priority but open to suggestions.

If they are, then what is the cheapest stock trading account out there?