Kids savings

wazza24

Hi all, just looking some advice on kids savings. i have two kids ages 6 & 4, they both have CTF's (shares acc) with FC. i also save £25 each per month into the Halifax child acc which has a rate off 6%. i plan to open a new one each year in different family members names for them.

I am just wondering should I maybe just put it all into the CTF? I originally had the ctf as stakeholder accounts which weren't doing to well and so i researched abit more and went with the shares acc. I thought it maybe better to not put all their eggs in one basket as such.

any advice is greatly appreciated.

wazza24

Bump :j !anything!

atush

Saving some in cash, and some in shares is a good idea (mostly shares for me).

So you could save into a Halifax RS until you build up a nice amt, then either transfer it to the CTF or continue to save it as cash in a fixed rate bond. Then move that 25/m into the CTF.

Lump sums you take the risk of entering the mkt at the 'wrong' time whereas is you save monthly you are safer from volatility thru pound cost averaging.

martinman3

wazza24 wrote: »

I originally had the ctf as stakeholder accounts which weren't doing to well and so i researched abit more and went with the shares acc. I thought it maybe better to not put all their eggs in one basket as such.

When you transferred to the shares account which F&C investment trust(s) did you select ?
It would only count as putting all your eggs in one basket if you only invested in one investment trust across all your children's investments. Even then, each trust, being managed, spreads the risk over many companies/geographical areas. I ask because F&C have 12 trusts to select, a few of which are currently not so great (in my opinion).