Saving newbee with 30k to save for kids -help!

Kangin_2

Hi folks,

I'm a bit nervous about posting but I do really need some advice.

Hubby and I have never been very good at saving but we are about to enter a new era of our lives and I could do with some advice as I find the whole thing very confusing.

Hubby (54) is about to get a much longed-for voluntary redundancy and after we have paid off the debts and mortgage, we should have about 40K to save for the future. We will be able to live comfortably with his pension and my salary.

I particularly want to put 30K away for the kid's futures. We expect our son (aged 12) to go to university and want to also have some cash for our daughter's (aged 14) wedding and to help her with her future. I want this money locked away tight so that we can't touch it until we need it - but I also want to get the maximum return from it. I am not comfortable with investing in the stock exchange.

How/where should I start? And what am I looking for?

Rafter

Kangin,

Given that you are not prepared to take risks, the best thing would be to lock as much as possible away in an isa or tax free savings and then the rest in a fixed rate or best buy variable rate savings account.

Have a read through the savings articles on here and then decide what you want to do.

I'd steer clear of national savings index linked certificates, because inflation is likely to be very low at the moment.

You should be able to lock almost half the money away in cash isas by investing half before april and half in the next tax year split between yourself and your husband.

I'm guessing you are both standard rate tax payers, so doesn't matter whose name the rest of the savings are in.

You could put the whole £15k left that isn't in ISAs into a 1 year bond. Then next year take out another ISA to get your interest beyond the tax man, take out another bond for £7,500 for a further year and then put that into ISAs the following year.

You will then have a tax free savings pot building up for your childrens future. You just need to check the interest rate each year and don't be afraid to 'transfer' your ISAs to better competitor products if the rate drops.

Good luck

R.

Robert_Sterling_3

Do not lock it away tight.
We do not know what the future will bring.

Kangin_2

Thanks Rafter. That seems like very sensible advice.....the way to go.

pink_numbers

I would second Rafter's suggestion, I can't think of any more well thought out plan!