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Family Forum / Parenting / Parenting / September 2005Child Trust Fund
Hi, We have a child trust fund voucher burning a hole in our pockets at the moment, but can't work out where to invest it. Does anyone know of a good website that can make recommendations? We don't have a lot of spare cash at the moment so don't want to pay for an IFA if we can get away with it. cheers dan > Hi, > We have a child trust fund voucher burning a hole in our pockets at the [quoted text clipped - 3 lines] > cheers > dan I got fed up with reading financial stuff that I can't begin to understand, so in the end we went with Asda because they were offering a £15 Gift Card!!! Love Portia xxx >> Hi, >> We have a child trust fund voucher burning a hole in our pockets at the [quoted text clipped - 13 lines] > Portia > xxx NOOOOOOOO they will take 1.5% off your money i know it doesnt sound alot but say you put in 500.00 in every year they will take 1.5% off what ever is in it you work out how much they are going to take off you in 18 years.. its bloody lot, asda are there to make a profit off this i would have put it in your own bank minx minx > We have a child trust fund voucher burning a hole in our pockets at the > moment, but can't work out where to invest it. Does anyone know of a good > website that can make recommendations? We don't have a lot of spare cash at > the moment so don't want to pay for an IFA if we can get away with it. I am not a website, and this is only a personal recommendation: http://www.fandc.com/privateinvestors.asp?pageid=3.3.4 > http://www.fandc.com/privateinvestors.asp?pageid=3.3.4 The only problem with this is you have to invest a minimum per month, we can just about manage that for number 1, but I doubt we could manage it for number 2 as well right now, we need to find somewhere where we can just put it and forget about it. Anne > We have a child trust fund voucher burning a hole in our pockets at > the moment, but can't work out where to invest it. Does anyone know > of a good website that can make recommendations? We don't have a lot > of spare cash at the moment so don't want to pay for an IFA if we can > get away with it. cheers When I read around everyone appeared to say all the CTF funds are relatively rubbish for various reasons and although you have to find somewhere for the voucher, you're better off putting any extra contributions elsewhere (e.g. in parents ISAs etc.) On where to put the voucher, a few 'experts' thought the Family Investments (www.familyinvestments.co.uk) was one of the best of a bad bunch of stakeholders because it invests in a fund managed by New Star. I haven't got a clue what will turn out to be good or bad, but which bunch are actually managing the money (e.g. New Star in the above) is the important bit and often one of the hardest things to find out. -A > Hi, > We have a child trust fund voucher burning a hole in our pockets at the [quoted text clipped - 3 lines] > cheers > dan ive been looking where to invest this money and asda is the wrong place to invest it as every year they take 1.5% of the money ie say you put the 250.00 in to the asda funds and add your own money say up to 500.00 in the trust fund they take 3.50 then the next year it will be 7.00 the post office or your own bank is the best place im going to go in on tuesday to natwest and see what they can offer me it is the childs money after all and i want this to earn as much on it as possible minx > ive been looking where to invest this money and asda is the wrong > place to invest it as every year they take 1.5% of the money ie say > you put the 250.00 in to the asda funds and add your own money say > up to 500.00 in the trust fund they take 3.50 then the next year it > will be 7.00 All the non-savings (i.e. shares-based) accounts do that. > the post office or your own bank is the best place im going to go > in on tuesday to natwest and see what they can offer me Nothing, I suspect. There are specific accounts, it's not as if you can go to the post office and ask them just to open a savings account. There are CTF savings accounts available but the return is likely to be less than a shares-based account. > it is the childs money after all and i want this to earn as much on > it as possible This is a bonus, in my opinion. I've opened a shares-based account for YoungBloke's voucher and whatever interest and extra funds the govt wants to add will be very nice. However, my parents opened a savings account for YB when he was born, and that's the one that /my/ money's going into, and where his pocket money and Christmas/birthday money is going for now. >> ive been looking where to invest this money and asda is the wrong >> place to invest it as every year they take 1.5% of the money ie say you [quoted text clipped - 20 lines] > YB when he was born, and that's the one that /my/ money's going into, and > where his pocket money and Christmas/birthday money is going for now. i went in to natwest today and they said all i have to do is take the voucher in and they will set up the account that is best (ie interest on top of the voucher) i asked them if they will take a percentage off the money that i add on top of the voucher (250.00) they said no i then told them about what asda is doing they said obviously asda isnt a bank and they will make a profit off this cash( which i think sucks) ok this is a bonus for our children for the future so there fore dont really want any one making money for them selves so im off to natwest tomorro to give them the voucher to earn its interest minx >> ive been looking where to invest this money and asda is the wrong >> place to invest it as every year they take 1.5% of the money ie say [quoted text clipped - 3 lines] > > All the non-savings (i.e. shares-based) accounts do that. But 1.5% is high, as charges for these things go. If you can't get 1% or less, don't bother. (Assuming the underlying investment is a tracker fund or something like that). Phil  Signaturehttp://www.kantaka.co.uk/ .oOo. public key: http://www.kantaka.co.uk/gpg.txt >>> ive been looking where to invest this money and asda is the wrong >>> place to invest it as every year they take 1.5% of the money ie say [quoted text clipped - 9 lines] > > Phil im not im off to natwest and they dont take a percentage of the money that is going in to the trust fund minx >>> All the non-savings (i.e. shares-based) accounts do that. >> >> But 1.5% is high, as charges for these things go. If you can't get 1% >> or less, don't bother. (Assuming the underlying investment is a >> tracker fund or something like that). [snip] > im not im off to natwest and they dont take a percentage of the money > that is going in to the trust fund I haven't been looking into child trust funds, but I do know a bit about finicial products in general. A product that does not take a percentage of money off might be a worse choice then one that does. If one product puts the whole £250 into its fund, but gives you an interest rate of between 1% and 5%, the most you will get back in the first year is £12.50, and the most in the second year would be about £13. But it might only be £2.50 in the first year. However if a differnt product puts less into the fund, but pays back a higher percentage, you might get more back. If the fund takes out 1% when you put money in, but might pay back up to 10%, in the first year, you would have £247.50 going in, but get back somewhere between £2.47 and £24.75. SignaturePenny Gaines UK mum to three >Hi, >We have a child trust fund voucher burning a hole in our pockets at the [quoted text clipped - 3 lines] >cheers >dan I'd buy a UK FTSE100 tracker. Legal & General used to have the lowest charges; not sure if that's still the case. But for a long term (10+ years) a straight tracker should be the #1 base investment for any UK resident. An IFA has no crystal balls. His job is merely to assess your attitude to risk, and recommend investments on that basis. You don't need an IFA for this. I take it you are aware that with a simple trust the child WILL get all of the money upon reaching 18. You may or may not want that, but it then gets complicated. |
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