CTF discussion area

LXGB

Did the AMC rise apply to Stakeholder CTFs as well as Self Select Shares? Aren't they capped at 1.5% AMC anyway?

Fairy-Home

Yes it did apply to Stakeholder CTFs as well as Self Select Shares but, as you state, for Stakeholders it was capped at 1.5%. It wasn't a rise but a new charge as there is currently no AMC. My daughters tracker fund has a TER of something like 0.4% so much cheaper even than a Stakeholder.

LXGB

Thanks F-H,
I've had the Secure message confirming the AMC Waiver as well now

fred1m

LXGB wrote: »

Did the AMC rise apply to Stakeholder CTFs as well as Self Select Shares? Aren't they capped at 1.5% AMC anyway?

This is the part of the original, ill-conceived master-plan that applied to Stakeholder CTFs:

For Stakeholder CTF accounts, where the maximum annual fee is 1.5% of the account value (including the fund manager's annual management fee), Selftrade's share of this fee will be capped at £35 + VAT per annum.


From: selftrade.co.uk/advert/terms09.php

cmacneil

Hi all -

I see there are 29 pages on this thread - I wasn't able to find my specific question, but if I have missed it please send me to the right place!

Our daughter has just turned 1 and she has a CTF in place. Thanks to the generosity of various birthday gifts we're well ahead of schedule for maxing out this year's CTF allocation.

We have a savings plan which will see an extra couple of hundred quid available, but of course with the CTF maxed out so quickly, we're not sure what to do with the money.

Is there another long-term tax free savings vehicle that we can use? My wife and I were thinking about opening a friendly account under our names, but with the informal arrangement that this would be our daughter's money when she turns 18 or so.

Is this sensible? Any other suggestions?

Thanks!
Chris

fred1m

ttp://money.uk.msn.com/investing/Child-Trust-Fund/article.aspx?cp-documentid=7185389

If you skip the paragraphs that question the wisdom of maxing out the CTF, there are a couple of suggestions in "Other Places to Save" - a little out of date, but some Googling will prove fruitful...

(I had to remove the 'h' from 'http' in the above link, as I'm new and not allowed to post links yet, so make sure you add it in your browser address field.)

FWIW, all my kids money is in self-select ISAs with different providers - half in wife's name and half in mine. We have made a will to cover for our possible absence that instructs on payout for the midgets.

rae76

Hi all very new to this! Not even sure I've put it in the right place! Not good with jargon either! I too have searched but I also haven't found the info I need. My Daughter has a ctf stakeholder investment fund with RBS opened Dec 2007, it's value has already dropped to £216.99! How will I know when it's the best time to move it to a savings fund (without losing more money) and which will be the best place to move it to? Any ideas greatly accepted!

cmacneil

fred1m wrote: »

ttp://money.uk.msn.com/investing/Child-Trust-Fund/article.aspx?cp-documentid=7185389

If you skip the paragraphs that question the wisdom of maxing out the CTF, there are a couple of suggestions in "Other Places to Save" - a little out of date, but some Googling will prove fruitful...

(I had to remove the 'h' from 'http' in the above link, as I'm new and not allowed to post links yet, so make sure you add it in your browser address field.)

FWIW, all my kids money is in self-select ISAs with different providers - half in wife's name and half in mine. We have made a will to cover for our possible absence that instructs on payout for the midgets.

Thanks - this is really interesting and helpful.

fred1m

rae76 wrote: »

My Daughter has a ctf stakeholder investment fund with RBS opened Dec 2007, it's value has already dropped to £216.99! How will I know when it's the best time to move it to a savings fund (without losing more money) and which will be the best place to move it to? Any ideas greatly accepted!

This really depends on your attitude to risk and how the £200+ fits into your overall provisioning for your daughter's future.

Personally, I'd leave it invested - it'll probably bounce back and beat cash over the long term - why sell low now (realising what is otherwise only an on-paper-loss) and then take an even worse hit by moving into a very low yielding cash position??

It's not as if the sum at stake here will be life-changing, so take a punt

More thoughts here:

guardian.co.uk/money/2009/may/10/child-trust-fund

Jayro_3

Hi all,
My first post and new to the website - but using it have made some good savings. Thanks Martin!
Anyway, I've just had a baby and used this site to get information about a child trust fund account.
Not being hot on the financial industry I wanted to just get my voucher in a bank and had already decided on a stakeholder account.
Using Quidco I have managed to get £50 cashback for opening an account with Engage Mutual.
Will use the money as wisely as my son will use his on his 18th....:rotfl: