Gifting shares to grandchildren

Page may contain affiliate links. Please see terms for details.
MikeInWimbledon said:
Well said: 18th April, Avacta was 248p. Today it's 106p.

Anyone buying on 18th April would have lost 57% of their money as of today.

It's been a tough six months, but a general investment fund would have returned 5-6% over than 6 month period.
Click to expand...
Hi

I am adding to my Avct holding as we speak.

Cheers

1634112834382.png
 
It'll be fun to review your portfolio in six months again.

You've lost 57% on Avacta since April 2021, but let's see what happens over the next six months.

Interesting to see that you're buying on the basis of a two month old press release, when the share has dropped 20% since that press release.

Hope it works out for you.




Skd884 said:
Hi

I am adding to my Avct holding as we speak.

Cheers

View attachment 119677
Click to expand...
 
MikeInWimbledon said:
Well said: 18th April, Avacta was 248p. Today it's 106p.

Anyone buying on 18th April would have lost 57% of their money as of today.

It's been a tough six months, but a general investment fund would have returned 5-6% over just that 6 month period. Over 10 years a realistic 10% compound interest will generate an extra 160%, tax-free if through an ISA.
Click to expand...
Shall we discuss Boom which i purchased at circa £1.70 ?

1634113779595.png
 
By all means do.

I bought Boom at £0.75 in February 2014 but got out at £15.00 seven months later. "Boom, Boom," to quote Mr B Brush.

At £10.80 today, Boom is six times its market price six months ago.

Tell us your forecast for April 2022. Will it be six times as much by April as well: £60 a share ?

Screenshot 2021-10-13 at 10.35.45.png


Skd884 said:
Shall we discuss Boom which i purchased at circa £1.70 ?

View attachment 119678
Click to expand...
 
This might be controversial but I intend to leave my daughter (and if she has children) bugger all financially. I expect nothing from my parents and other relatives and I encourage them not to leave me anything. My parents have worked all their lives to enjoy their retirement to the absolute maximum from backgrounds of nothing. My daughter knows my views and she is very aware that she has to make her own way as I have done as well as my brothers and sisters. She's has her own business buying and selling horses at 11 years old. I have had friends that have been left money in their late teens and guess what? They are not mature enough to think sensibly about the windfall and buy a stupid car or piss it up against the wall.

If you intend to leave someone some money, give it to them when they are 30 if prerequisites are fulfilled.

Invest in an AMG GT, wonderful holidays and amazing cocktails.
 
That's why I strongly recommend people don't put money in junior ISAs for their kids. Put money in your own ISA, or pension, and give it to them much later in life as per @BlackC55
Most 18 year olds with £100k maturing in their junior ISA would be massively offended if you were to suggest they couldn't be sensible with it, as they're booking holidays and eyeing up cars.
 
On financial advice when i had my children and was going to set something up in there name, i was told don't put it in there name, because you never know what the future holds and you could be giving a drug addict a nice amount of money they could kill themselves with. That never even entered my head, so i thought i would pass it on.
 
I set up junior ISA's for mine right from the beginning on the logic of "teaching" them about saving, equity returns, compound interest, and the importance of tax wrappers. The risk was always that they might be tempted to dip in at some point. All their birthday & Christmas money has gone in, together with ad hoc lumps.

People really don't understand the idea of spending less than they've got coming in, or that a growth fund can easily earn 10+% compound.

So far, it's worked. They're cautious with money and savers. But who knows what's round the corner? (Or what partner is round the corner)

It's a tough subject. I know some uni students who've spent a sizeable inheritance lumps within a couple of years, and six formers who were given fifties for a nigh out. No different to work colleagues who routinely spent more than their £200k a year salary and wondered where it had all gone when the music stopped..

Whatever we do, the important thing is just to talk about it as a life skill. That way the apple shouldn't fall too far from the tree.
 
I have 3 grandchildren aged 5 and one aged 7. Up to now I have put £29K into junior ISA's for them and they know nothing about it. I agree about teaching them to mange money but the sums involved in the ISA's are much too big for that purpose at the moment. They are being taught with small sums of pocket money which they save for the things they want. The ISA money will be legally theirs at age 18 so they will need to be told sometime before that once they can see the need is either for university or a house deposit. It's a risk of course but that's not a reason to hold back. I want my grandchildren to love me, and they do, but not for my money.
 
merc estate said:
On financial advice when i had my children and was going to set something up in there name, i was told don't put it in there name, because you never know what the future holds and you could be giving a drug addict a nice amount of money they could kill themselves with. That never even entered my head, so i thought i would pass it on.
Click to expand...

My mum had funds set aside for our kids to get when they were / are 25 , it was all done through mum`s lawyer but in the kids names and only payable on mums say-so incase they went off the rails. Daughter opened a Help to buy ISA so she has been sensible , son is 25 in 14 months and unfortunately has be attending GA for the last three years , and thankfully has now sorted himself out but if he hadn`t his money from Granny would have gone straight into the pockets of PP or William Hill which would have broken grans heart.

K
 
KennyN said:
son has be attending GA for the last three years, and thankfully has now sorted himself out
Click to expand...

Be alert that it might not be that straight forward and everyone, including the son, could be at risk of being a little naive that it has been sorted out. Just like drinking, a prudent view is 'I will always be an addict', or at least at increased risk of relapse given certain triggers. E.g. a load of cash dropping,
ker-ching 💸💸💸💸💸💸

One of my ex-girlfriend's dad was an alcoholic, and had a massive heath scare that stopped him drinking (but killed him a couple of years later nonetheless). But he filled the void with gambling. Went to GA (or went somewhere), told everyone it was sorted, but in reality he just got more covert with it and was also the power of attorney for his elderly mum's finances. After he died and his wife got access to all his financial dealings, his mum's savings had also been entirely rinsed and everyone thought he was on top of it. Thankfully the £70k unsecured personal debt on credit cards died with him (that no one knew about).

I only mention this as a cautionary tale and urge extra vigilance as the money is released.
 
merc estate said:
On financial advice when i had my children and was going to set something up in there name, i was told don't put it in there name, because you never know what the future holds and you could be giving a drug addict a nice amount of money they could kill themselves with. That never even entered my head, so i thought i would pass it on.
Click to expand...

My mum had funds set aside for our kids to get when they were / are 25 , it was all done through mum`s lawyer but in the kids names and only payable on mums say-so incase they went off the rails. Daughter opened a Help to buy ISA so she has been sensible , son is 25 in 14 months and unfortunately has be attending GA for the last three years , and thankfully has now sorted himself out but if he hadn`t his money from Granny would have gone straight into the pockets of PP or William Hill which would have broken grans heart.

K
MrGreedy said:
Be alert that it might not be that straight forward and everyone, including the son, could be at risk of being a little naive that it has been sorted out. Just like drinking, a prudent view is 'I will always be an addict', or at least at increased risk of relapse given certain triggers. E.g. a load of cash dropping,
ker-ching 💸💸💸💸💸💸

One of my ex-girlfriend's dad was an alcoholic, and had a massive heath scare that stopped him drinking (but killed him a couple of years later nonetheless). But he filled the void with gambling. Went to GA (or went somewhere), told everyone it was sorted, but in reality he just got more covert with it and was also the power of attorney for his elderly mum's finances. After he died and his wife got access to all his financial dealings, his mum's savings had also been entirely rinsed and everyone thought he was on top of it. Thankfully the £70k unsecured personal debt on credit cards died with him (that no one knew about).

I only mention this as a cautionary tale and urge extra vigilance as the money is released.
Click to expand...

We still manage his money , he gets paid and transfers his wages into our account and we drip feed it back into his account as required. He openly shows us is online transactions when asked so we are pretty confident that he is back on the straight and narrow , but we are continually vigilant regarding his actions.

RE Grans ££ , mum passed away last year so his money (on his say-so) has been put into out account when her estate was being sorted out. It will be his to do what he wants with when he is 25 , deposit on a flat and keep his Fiesta or an Audi RS3 and continue living with us.

K
 
I don't understand the significance of the £20k share purchase by Mr Tobin?
I know that normally director purchasing is a good sign of their faith in the company, but as someone uneducated in these things but with an enquiring mind, I have to wonder does that apply in this case?
@Skd884 do you have any additional insight on this?

My thoughts are:
- Given that he already holds 315k shares worth £3.3m, it makes me wonder why he would buy another 1904 shares, adding 0.6% to his existing holding?
- Is it possible this is 'purchase' of shares is how share option/bonus is notified and he's had a £20k bonus in shares, rather than having independently made a share purchase?

I can't possibly hope to get into the mindset of the mega-rich as it's so far removed from my personal situation, but I wouldn't be surprised if Mr Tobin doesn't get out of bed for the return he will see on his £20k, and who could blame him.
 
MrGreedy said:
My thoughts are:
- Given that he already holds 315k shares worth £3.3m, it makes me wonder why he would buy another 1904 shares, adding 0.6% to his existing holding?
Click to expand...

This share may not even issue a dividend but if it does one possible reason is the re-investment of dividends. You see this all the time with directors purchasing relatively small amount of shares. This is something I also do when a share doesn't have a scrip dividend scheme where you can opt to automatically receive dividends as new shares. Re-investment of dividends over a long period is key to increasing the return on shares.
 
You must log in or register to reply here.

Users who are viewing this thread

Total: 2 (members: 0, guests: 2)

Similar threads

Satch
Stealth Taxes
2
Replies
22
Views
4K
Satch
Satch
Back
Top Bottom