People tend to be overly pessimistic in the long run and overly optimistic in the short term.
People are living longer, so they need to adjust accordingly. But there will be a limit, we won’t keep living longer and longer…or maybe we will, and that’s good
Let’s be honest. Freetrade is never going to ship this. They are hard of hearing, too slow, too useless at shipping anything and it’d probably the 20th thing on their list to make if they had a list.
My 2 year old son has a sipp from a broker that actually offer it. I had a lot of backlash and confusion from family (grandparents, missus etc) about locking away his money for 60 years.
Nearly everyone thinks it’s a dumb idea, but if you have a long term outlook, an understanding of compounding and the benefits of not being able to pilfer savings throughout the ups and downs of a lifetime, then a sipp is clearly a brilliant product.
I made a rule for his sipp to satisfy all the haters in the family who said it shouldn’t be done. The rule is that the sipp value should be roughly equal to his age plus 10% of the total value of his savings. So where he is 2, it’s 12% of total savings. When he’s 40 it will be 50% of his total savings if he sticks to that rule.
I think it’s a great idea, and like you said, if you understand compounding, and the fact that it’s a tax efficient account, you are setting your children for financial success, even if only for their retirement.
Remember that some people attribute Warren’s Buffet wealth not to the fact of their successful investments, but to the length of them. He only became millionaire in his 50s.
Thank you for sharing your thoughts and the discussions with your family. I think your rule is quite good, and everyone will thank you later.
Now regarding Freetrade delivering this feature, I agree with you that is not on the top of their priorities and it will take time to deliver. However, is still worth making the request topic, and vote for it. The more votes, more visibility and more likely to jump the feature queue.