The Future of Your Child Child,How to Invest the Two Hundred and Fifty Poundschild Trust Fund Voucher,Invest Your Totally Free Child Trust Fund Voucher with Scottish Friendly,Investing in a Child Trust Fund Builds a Sound Financial Foundation for Yourchil
Heard about the Child Trust Fund?Not many UK parents noticably
insubstantial number of parents appear to be aware of the fact that all babies are given a free £250 voucher from the government to put. This vouchermay be invested in any one of threekinds of CTF account, Stakeholder - a shares-based account that changesinto cash, a savings account or a shares account. It is a great opportunity to prepare life of a young person
Scottish Friendly is an accredited provider of the Child Trust Fund Voucher. The Government is eager for the public at large to have access to Stakeholder accounts and this is the type of account that we are catering for. This means that:
• Investments are placed into Scottish Friendly’s Managed Growth Fund, which intends to provide good growth potential
• It invests partly in shares to get the benefit of potentially higher returns over 18 years,compared to a cash deposit account (although the value of shares candecrease as well as increase whereas capital would be protected in a deposit account)
• It comes with a low ‘Stakeholder’ funds charge of just 1.5% per year
• When attaining the age of 18 the child will receive a lump sum, wholly free of Capital Gains and Income Tax under prevailing law
• It is affordable - extra payments can be put in the account from only £10
One of the great attractions of the Child Trust Fund is that anyone - parents, grandparents, aunts and uncles, friends - can add to the Fund to a top limit of £1,200 per year to help augment the child’s Fund (once added, this money is not allowed to be withdrawn).
In a nutshell our Stakeholder account provides a good balance between potentially high returns and a lower level of risk. There’s also the additional assurance that our account complies with the Government’s stakeholder criteria. Nevertheless this does not mean that returns are assured or that Stakeholder accounts are appropriate for everyone. Bear in mind that the value of shares in the Managed Growth Fund (where your Child Trust Fund money is invested) can go down as well as rise and is not guaranteed.
Only children who were born on or after 1st September 2002 are eligible to open a Child Trust Fund. If you have older children who are not allowed you could contemplate investing for them with a Child Bond - it’s a tax-free savings plan intended for long-term growth. It is undoubtedly the case that saving for your children is a rewarding means of preparing for the world to come.
