Savings and Investments ![[stack of coins]](coins.jpg)
Saving for your child to go to University, help them buy their first home or just give them a good start in life. How many parents would love to do these for their children, but are unable to do so because they failed to plan their savings properly?
Children born after 1st September 2002 will be eligible to receive a payment of at least £250 from the Government. The payment will be made in voucher form and invested in the child’s name to be paid out to the child on their 18th birthday.
This incentive is known as the Child Trust Fund, and the aim of the Government’s plan is to promote a culture of saving for children and the Child Trust Fund is designed as a catalyst to encourage parents to consider long-term savings for their children. This incentive alone is unlikely to provide sufficient funds to give the children a good start in life. If you want to give your child a head start it makes sense to plan for their future, either by saving on a regular basis or investing a lump sum for their benefit.
You may be saving with the traditional institutions such as banks or building societies. However there are many other alternatives available. National Savings, Individual Savings Accounts (ISA’s), Unit Trusts, Individual Stocks and Shares, Corporate Bonds and Gilts are just some of the options available to an investor. It is important, however for the investor to understand the different level of risk associated with each product.
Have you sufficient funds available, that you can access quickly without penalty if the unexpected happened, such as a major repair to your car or a household appliance breaking down?
If you would like to discuss what could be a complex area of financial planning, please contact me to discuss your requirements.