Even though we cannot be sure about many things, one thing that we can be sure of is that anything can happen to a parent and at anytime. He or she could be gone, or be in a position where they are not able to provide for their children. The question that rages in the minds of most parents is that with so many child investment plans in the market, and with all of them claiming to be the best, just how does one choose which one to get.
Many parents choose the most flexible kind of account for their children, and this is the shares child trust fund. This kind of trust fund allows the money to be invested in shares and stocks. It is flexible in that you can choose the company you want your child's money to be invested in or you can simply put the money in an investment trust that chooses for you. Either way, the money can bring a lot of income, which is not taxed.
It is important that before you embark on any investment project for your child that you are able to find as much information as you can in order to help guide you in selecting the best investment plans for your child.
The good news is that you can start a child trust account as soon as the child is born. However, it is very important that you analyse your financial position very carefully first, so that you know whether or not you can afford to make all the monthly payments. Another thing to bear in mind is that the earlier that you start a child trust account, the longer it is going to stretch before it can mature.
It is also imperative that you follow the instruction laid down to the letter so that you do not miss a step in your endeavours to set up a child investment. The good thing is that there are numerous consumer guides available to read online which are written by renowned experts for people like you who care about their children.
It is also important that you know all the rules that govern such trusts for children. For example, depending on the time of birth, children are entitled to receive a certain amount of money from the government, going into their account. You should therefore have read the rules to know what the government stipulates by instituting the child trust funds. Remember that the child trust fund is a means of encouraging the parents to save money for their children's future.
I am interested in the world of tax free savings and investments in order to help families to achieve financial independence and make the most of their money. If you are interested in reading more information shares child trust funds and tax free investment plans then please visit the following sites:
Financial Services Authority - this is a useful site that provides unbiased money advice to help you manage your money better. Scottish Friendly - mutual societies such as Scottish Friendly supply financial services products. Mutual societies are owned by customers, or members. As a result they have no shareholders to pay dividends to, or to account to, so they can concentrate on delivering products and services that meet the needs of their customers. Association of Financial Mutuals - here you can find out useful information about mutual and friendly societie.
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