Moneymakeover 14 Year Old Boy €21k Inheritance

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HappyLuck

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Hi,
I hope this is the right place for some advice. Apologies if not. My son will inherit €21k after tax in a few months under a will which creates a bare trust. He is entitled to his money at 18.
I was wondering what would be his investment options?

Some Details
Age 14
No savings or debt.
He is a sensible spender, stays within his pocket money limit , never looks for more.
His Parents are not saving anything for him they’re just getting by paying daily bills at the moment.

I have a stockbroking account for him & his sister with €60k in it, mainly shares & some cash. This was funded in better times using small gift exemption. The goal was pay for college or a house deposit. Neither kid knows of its existence.
 
Stick it all in the stockmarket directly.
He has to leave it there for 4 years so short term fluctuations won't cause him to panic and sell.
It is a great learning experience for a teenager to understand money and how the stockmarket works.

Alternatively, put half in a deposit account and half in the stockmarket so he can see how both do.
 
I think Brendan's second suggestion gives you an opportunity to present your son with a very valuable teachable moment. I can't think of a better way to introduce him to the concept of compounding and to show him what the standard deposit account earns or more importantly doesn't earn for you.
 
HappyLuck said:
I have a stockbroking account for him & his sister with €60k in it, mainly shares & some cash.
Click to expand...

Is that account in their name(s)? Revenue have said that putting money aside for someone in an account you control doesn't count as a gift for small gift exemption reasons.
 
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