Child Trust Fund - Options
Discussion
I'm sure a few parents would have got the government child trust funds, we put all the child benefit into it and it's now worth about £14k, cashed it in as she turned 18.
I'm thinking the best option would be a LISA as she can use it for house deposit and doesn't need the money, she left it to me to decide what to do with it.
The LISA allows £4k a year and then gives £1k bonus, would it be better to drip feed say £333 pm or put the whole £4k per year in?
I've got a offset mortgage at 5.49%, I'm happy to pay her the interest at that rate (as that's what it will be saving me) and drip the rest over approx. 3.5 years into the LISA, does that sound like a reasonable plan, anyone in a similar situation re CTF's?
Anyone recommend a good LISA provider, I'm thinking H&L as there charges seen quite low now (recently reduced)
I'm thinking the best option would be a LISA as she can use it for house deposit and doesn't need the money, she left it to me to decide what to do with it.
The LISA allows £4k a year and then gives £1k bonus, would it be better to drip feed say £333 pm or put the whole £4k per year in?
I've got a offset mortgage at 5.49%, I'm happy to pay her the interest at that rate (as that's what it will be saving me) and drip the rest over approx. 3.5 years into the LISA, does that sound like a reasonable plan, anyone in a similar situation re CTF's?
Anyone recommend a good LISA provider, I'm thinking H&L as there charges seen quite low now (recently reduced)
Casa1862 said:
I'm sure a few parents would have got the government child trust funds, we put all the child benefit into it and it's now worth about £14k, cashed it in as she turned 18.
That sounds a pretty poor return if you put the child benefit in for 18 years. Both my children have one, I stopped paying in a while ago as it was worth less than the amount I had paid in. The amount of money they took in fees meant it was actually losing money every year.I could have literally put the cash in a draw and forgot about it and outperformed their financial "experts"
anonymous-user said:
That sounds a pretty poor return if you put the child benefit in for 18 years. Both my children have one, I stopped paying in a while ago as it was worth less than the amount I had paid in. The amount of money they took in fees meant it was actually losing money every year.
I could have literally put the cash in a draw and forgot about it and outperformed their financial "experts"
Just been going through some paperwork for the CTF - I've just realised they are robbing bI could have literally put the cash in a draw and forgot about it and outperformed their financial "experts"
ds! its invested in Halifax UK FTSE 100 tracker - which is not performing well but they're charging 1% annual management charge for doing pretty much nothing!!
I started two when the government were handing out the free CTF money, both are with Foresters.
I stopped paying in a few years ago as after 12 years they were worth less than I had paid in. They charge 1.5% of the fund to manage it.
Brilliant, wish I had never contributed any of my own money and just stuck it in a Vanguard LS 100 fund.
I stopped paying in a few years ago as after 12 years they were worth less than I had paid in. They charge 1.5% of the fund to manage it.
Brilliant, wish I had never contributed any of my own money and just stuck it in a Vanguard LS 100 fund.
ThingsBehindTheSun said:
I started two when the government were handing out the free CTF money, both are with Foresters.
I stopped paying in a few years ago as after 12 years they were worth less than I had paid in. They charge 1.5% of the fund to manage it.
Brilliant, wish I had never contributed any of my own money and just stuck it in a Vanguard LS 100 fund.
Yup, Foresters here too. Its all in the small print, 1% fee on funds and 1.5% on additional contributions - and all they do is stick it in a bog standard tracker. Didnt know a lot back then, dont know too much now, but a little wiser with the help of PH and IM.I stopped paying in a few years ago as after 12 years they were worth less than I had paid in. They charge 1.5% of the fund to manage it.
Brilliant, wish I had never contributed any of my own money and just stuck it in a Vanguard LS 100 fund.
My sons Child Trust Fund with Foresters matures this September.
I never told him about it, but he found out recently from friends that he might have one, so he started asking me. Was going to be a nice surprise for him on his 18th birthday, now the cat is out of the bag
Advice from a friend it to contact Foresters before it matures because as a parent you can control where the funds get withdrawn to etc. As soon as he is 18 they wont speak to the parent at all. I'd like to sort this myself so will be phoning them this week.
I never told him about it, but he found out recently from friends that he might have one, so he started asking me. Was going to be a nice surprise for him on his 18th birthday, now the cat is out of the bag
Advice from a friend it to contact Foresters before it matures because as a parent you can control where the funds get withdrawn to etc. As soon as he is 18 they wont speak to the parent at all. I'd like to sort this myself so will be phoning them this week.
Transferred my son's CTF into a JISA quite a few years ago. He's 18 now and it's transferred into a ISA.
Didn't add much over the years, the odd hundred. He's earning a few ££ now while at Uni, trying to get him to add to the ISA but he's happy to store it in a bank account. Kids, can't tell them anything!
Didn't add much over the years, the odd hundred. He's earning a few ££ now while at Uni, trying to get him to add to the ISA but he's happy to store it in a bank account. Kids, can't tell them anything!
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