Childrens Trust Fund
- Thread starter wisey
- Start date
Sponsored Links
2
2scoops0406
Fools gold 14:50 at kempton. 10-1 on the nose to win.
Sponsored Links
Depends who you vote for !!
2
2scoops0406
wisey said:
At approx 4% AER in a build soc, it'll be worth just over £500 which assuming inflation continues to run at around 2.5% will be worth about £320 in todays terms when the nipper is 18. Stocks and shares have traditionally outperformed banks and building societies but they must be viewed as a medium to long term investment. As this is the nature of your investment then I would go for shares. Which ones are your guess.
Remember the value of shares can go down as well as up, you may not receive back all the money you originally invested (to quote the blurb)
Definately shares. You are looking at a 18-21 year period. Over this time frame shares are your best bet for the most appreciation. You could then invest only in UK equity or go for a a global portfolio (which would at least diversify some of your risk). In a few years, if still worried about downside protection you could move some of it into government bonds. (of course this is just my personal view and not advice!)
I take it you have to put it in your child's name? if not, how are they making foolproof?wisey said:
Best to invest in shares over long term, get good advice though!
What I used to do for a bit of fun, pretend you have say £500 to invest, split it into number of group like 20% each share. Make a note of shares you have chosen and write down the price on the day and see how much you have made after a few months.
I did this a few year ago when I doubled my investment, I took out my lump sum out I used to invest it with and carry on making money from the profit I have made and not worry if I lose it! Quite please with the investment so far from a bit of fun
- Joined
- 1 Jun 2004
- Messages
- 698
- Reaction score
- 19
- Country
masona said:[
Best to invest in shares over long term, get good advice though!
I tried that for real, after reading in the Daily Mail Money pages of this wonderful product this company was creating with a future massive growth; bought the shares, the next week they plummeted and they've been there on the floor ever since - should have copied your "dream" share idea, I would have been a lot happier!
I would deffo go shares, via an Index tracker fund.
http://www.fool.co.uk/trackers/index.htm
This is a neat site "The Motley Fool", When you get your head around the name and sift out the adverts, there are very active discussion boards mainly finance related with useful articles for the novice or tyro !
Just noticed, the posters actually have active meets, there is a Bristol social evening advertised !
P
About halfway down the page here :-
http://www.fool.co.uk/trackers/index.htm
This is a neat site "The Motley Fool", When you get your head around the name and sift out the adverts, there are very active discussion boards mainly finance related with useful articles for the novice or tyro !
Just noticed, the posters actually have active meets, there is a Bristol social evening advertised !
P
You don't get full freedom to decide where to invest it :
"What is a Child Trust Fund?
It's a long-term savings and investment account - with at least £250 free.
The Government will give all children born since 1 September 2002 a lump sum worth at least £250 to open an account.
Parents, grandparents - in fact anyone, including the children themselves, can then save up to £1,200 in the account each year. When your child reaches 18, all growth and proceeds from the PMAS Child Trust Fund will be free of income and capital gains tax. Children can only access their money when they reach 18.
The Government will send a voucher directly to the child's parents or guardians. This voucher must be invested in a Child Trust Fund with a registered provider. "
Of course all the high street Banks etc have such schemes.
"What is a Child Trust Fund?
It's a long-term savings and investment account - with at least £250 free.
The Government will give all children born since 1 September 2002 a lump sum worth at least £250 to open an account.
Parents, grandparents - in fact anyone, including the children themselves, can then save up to £1,200 in the account each year. When your child reaches 18, all growth and proceeds from the PMAS Child Trust Fund will be free of income and capital gains tax. Children can only access their money when they reach 18.
The Government will send a voucher directly to the child's parents or guardians. This voucher must be invested in a Child Trust Fund with a registered provider. "
Of course all the high street Banks etc have such schemes.
18 years at £1200 a year? Oh, I get it, that would work out to about the cost of university for a typical bachelors' degree!
Hmmm, wonder how many young families can afford to contribute £1200 a year per child? Especially with several kids. Is £3600 a year really doable for the not-uncommon family of 5 with an income around the £15-£20K mark?
Or is this actually a hidden "warbonds" scheme
Hmmm, wonder how many young families can afford to contribute £1200 a year per child? Especially with several kids. Is £3600 a year really doable for the not-uncommon family of 5 with an income around the £15-£20K mark?
Or is this actually a hidden "warbonds" scheme
Sponsored Links
