Questions And Answers
Saving for my grandchildren
asked by James Mills posted 3 Years ago at 12:21
Good afternoon, i am 51 years old (rather young to be a grandparent i feel!) and have been thinking about setting aside a sum of money, or starting a regular savings plan for my 2 year old grandchild, so that when the she is older she can use it for a downpaymet on a house, further study or anything that she wishes. I am just interested to hear from anyone who has made a similar investment, or from anybody who can recommend an investment with a good rate of return. Thanks. James.
1-5 of 5 Answers
Jason Smith answered 3 Years ago at 11:40, last modified: 2 Years ago at 14:56Hi James, i recently opened a Child Trust Fund (CTF) for my son, and would certainly recommend it to you. The CTF provides a government-funded endowment of a minimum of £250 per child at birth (and up to £500 for those children from lower income families). Parents, friends and relatives can all add to the fund. It matures when the child becomes 18 and there are absolutely no restrictions on how the proceeds are used. Hope this helps mate.
Asif Kahn answered 3 Years ago at 11:46, last modified: 2 Years ago at 14:56Hello, if you want a slightly riskier investment with a higher rate of return than cash accounts, then i would suggest the stock market. Stock market funds have outperformed other forms of investment over the long term. Indeed the long term nature of investment for children (usually in excess of 10 years) and the fact that investments are made on a regular basis, are both factors which help to reduce the risks associated with investing in shares. Asif.
Ross Kerslake answered 3 Years ago at 12:33, last modified: 2 Years ago at 14:56I agree with Asif in that the stock market is a good bet. More specifically, when saving small regular amounts, the most profitable way to invest in stocks is via a unit or investment trust (a pooled investment fund provides access to a spread of shares and other securities like bonds). Good luck! Ross.
Manic Mike answered 3 Years ago at 12:46, last modified: 2 Years ago at 14:56Stock market is the way to go - good advice guys. In the long term(10 plus years), if you are not going to touch the money, it is a stellar investment. Be prepared for possible losses in the short term though.
Stephen Pett answered 2 Years ago at 16:14, last modified: 2 Years ago at 14:56If parents put aside half the money they or anyone else spent on toys, gifts or treats for kids, the kids wouldn't notice and there would be a large lump sum available in time.
Is it the Rupert Fund which allows top ups of just £25 after opening it with £50? Ask you IFA
About Q&AGet your questions answered by a unique network of professionals and fellow consumers for free. Share your knowledge and experiences by answering other consumer questions from the Total Investor community.
- General Topics
- Finance & Mortgage
- Wealth Management
- Retirement Planning & Annuities
- Offshore, International & Expat
- Estate Planning
- Group & Corporate Business
- Campaign Board
- Lifestyle & Planning
- Legal Matters
- Tax & Accounting Matters
- Property Matters
- General Insurance