Child trust fund with Halifax

waj1234

How safe is the child trust fund we have for our son? It is almost 5 years since we started it with the government money we got and have been paying £50 a month into it ever since. It is with the halifax and I have not thought anything much about it until now.

Is it likely to have lost quite a large amount or be ok? Is it wise to lower the payment going into it for now or stop putting money into it all together until things improove?

Thanks

Simon.

Lokolo

The FTSE lost 10% today, which is basically the average loss over the top 100 companies on the stock exchange.

however, I am not sure whats actually invested in Halifax's Child Trust Fund so can't really tell to be honest!

jessicamb

Is your child trust fund cash based or a stocks & shares account?

Lokolo

Theres always that.

Hehe too young to be thinking of kids.

waj1234

jessicamb wrote: »

Is your child trust fund cash based or a stocks & shares account?

I need to dig it out in the morning but sure it is stocks and shares based and then with the option to move most of that to cash based nearer the end of it to make it safer. I will check for sure tomorrow.

I just want to know if it will be best to stop or reduce payments into it so as not to loose any further.

I dont really understand any of it

jessicamb

waj1234 wrote: »

I need to dig it out in the morning but sure it is stocks and shares based and then with the option to move most of that to cash based nearer the end of it to make it safer. I will check for sure tomorrow.

I just want to know if it will be best to stop or reduce payments into it so as not to loose any further.

I dont really understand any of it

there is an argument that saving in a falling market buys you more units for your money, of course there is always the risk that you dont get back as much as you paid in - but then the markets still have years to recover before the CTF matures.

I cant give you any advice about the right thing to do as i have no idea where the markets are heading (and I'm not a financial advisor!)

It might be worth reading Martins CTF article again and see if that helps you out any

waj1234

I have just had a look and it turns out it is a stakeholder account and as of july 2008 was worth £2135 based on the share price at that time. Guess it has lost a fair amount then since. Now shall I leave it as it's a long term thing and hope it recovers or change it to a cash one now and take the losses? I may call them, I assume it is still held with HBOS since the gov buy out?

waj1234

I think after doing some reading it is best left where it is for now. Since as already said I will be gettingmore units for my £50 a month investment and it is a long term thing hopefully it will return well.

Thanks

Simon.

davethorp

I dont have a CTF with halifax but am becoming very concerned about my two sons funds both of which are with the same provider and both are stakeholder funds

Unfortunately we cant afford to make a regular payment in the funds so there is only the Government's money in them.

Our eldest son is 2 next month and got £500 off the government for his fund. The fund is now only worth £350. Our youngest was born Feb this year, has received £250 so far with another £250 to come. His fund is currently worth £185.

I'm seriously considering cutting losses and changing to a interest based fund instead. Anyone know if it's worth doing this or not and praying the market picks up

waj1234

davethorp wrote: »

I dont have a CTF with halifax but am becoming very concerned about my two sons funds both of which are with the same provider and both are stakeholder funds

Unfortunately we cant afford to make a regular payment in the funds so there is only the Government's money in them.

Our eldest son is 2 next month and got £500 off the government for his fund. The fund is now only worth £350. Our youngest was born Feb this year, has received £250 so far with another £250 to come. His fund is currently worth £185.

I'm seriously considering cutting losses and changing to a interest based fund instead. Anyone know if it's worth doing this or not and praying the market picks up

There is no doubt it will pick up eventually. It may go lower first but who knows. If you are not putting anything in regular it probably is not gonna make too much difference long trem and will not be worth a large amount in the end. Making payments now will buy more units though so as long as it recovers it should be worth more.

I would n ot panic too much though, but I am no expert.