One thing I have noticed while listening to financial services-related podcasts is the amount of time given to Junior Isas.
Any time is too much time: to paraphrase the great Winston Churchill himself: “Never, in the course of financial advice, has so much air time been given to a product used by so few for so little purpose.”
Does anybody know anyone who actually uses Junior Isas? I mean, really?
The rules are painful – ‘young Timmy got a children’s trust fund set up in 2003, on the third Wednesday following a full moon, when Saturn was in Jupiter, so he is ineligible for a Junior Isa’.
Furthermore, the idea that the Isa becomes the boy/man-child’s at age 18 is utterly stupid. I know what I would have done had I been given a lump of cash at 18.
Why do we make financial planning so complicated? How many parents even begin to use their combined £30,000 Isa (or New Isa) allowance every year? A tiny number. So if you want to save for young Timmy, use some of your own Isa allowance.
Think about it: the Isa remains yours, so when Timmy goes chasing fast women and loose cars (or whatever), you retain control.
The funds still grow tax-free, the limits are more generous, the admin is easy.
Incessant debate on Junior Isas is just another example of the curse of our profession – talking about product over solutions.
Nick Lincoln is director at Values to Vision Financial Planning