CTF Confused.

BOBSTER_2

Hi.

(For the third time I’ll write this out, as I keep getting dumped off of this site).

In a few weeks my daughter will be one year old, & for most of that time I didn't know what to do with this government voucher.
That was until I found this place (well done Martin, & staff).

After reading the information here, my partner, & I have decided to only invest the £250 in the CTF, and start up a separated savings account that we can control, until she is mature enough to have it.

Now as we didn't have the £250 before, & it's only £250, were not really going to miss it if the worst happens, how ever if it does make gains, that's great, but what we can't decide on is what to do it with it, this site, and places like supermarket.com all have comparisons for the savings options, but there's nothing for the stocks, & shares option.

How do I know which provider to go with?
I know nothing about stocks, & shares
How do I know who to go with?
How do I know that one providers investment, is better/worse than another’s?

This is not just limited to CTF, I have the option of putting 5% of my salary, in to a pension, and the company will put in another 10%, great rate, but I have to choose who to invest it in.
To me it’s all too dangerous, my future in if's & may be's, I’m 31 this year & don't have any thing going, I need soiled stuff, guarantees that I’m going to get X amount at the end (Totally wrong place for this subject, sorry).


Any help will be grateful.

Cheers
Rob'

dunstonh

How do I know which provider to go with?

How do I know who to go with?

research

How do I know that one providers investment, is better/worse than another’s?

experience, knowledge and a bit of luck.

I need soiled stuff, guarantees that I’m going to get X amount at the end

guarantees cost money and usually result in lower returns over the long run.

I have the option of putting 5% of my salary, in to a pension, and the company will put in another 10%, great rate, but I have to choose who to invest it in.

So presently, you are missing out on 10% of your salary as free money?

If your car needs servicing, do you service it yourself? do you sit their doing nothing because you dont know how to do it? or do you get a mechanic to service it?

Well, the same applies here. You can do it yourself, you can do nothing or you can get an IFA to do it for you.

BOBSTER_2

dunstonh wrote: »

research


experience, knowledge and a bit of luck.



guarantees cost money and usually result in lower returns over the long run.

So presently, you are missing out on 10% of your salary as free money?

If your car needs servicing, do you service it yourself? do you sit their doing nothing because you dont know how to do it? or do you get a mechanic to service it?

Well, the same applies here. You can do it yourself, you can do nothing or you can get an IFA to do it for you.

Thank you for the reply.

I'm a bit of a control freak, using your car quote, i do most of the work my self as i don't really trust others, & on the few times i do let some else do some work (normaly because i don't have the tools), i watch them like a hawk.
I like to do the same with money, with savings schemes etc i can monitor them, & chop, & change things if needed, but stocks, & shares thats a whole new ball game, IFA sounds like the right course to take, but i'm then trusting somebody else.

If i did go to a IFA:
What do they do?
How can i trust there advise?
How much money do they charge?

I'm getting further away from the subject that started this thread,

How do i research the stock, & shares for CTF?, is there a something out there like supermarket.com?

experience, knowledge and a bit of luck. Thats all a bit pie in the sky, any way of narrowing the bad odds?

Cheers
Rob'

dunstonh

What do they do?

collect info, research and recommend.

How can i trust there advise?

How can you trust any professional in any area? IFAs are authorised and regulated by the FSA and there is consumer protection in the event of bad advice. You can also ask to see the research that supports the advice.

How much money do they charge?

Depends. See one in Central London with a City premises and expect to pay a lot. FSA published averages say that 1.8% of amount invested the current average (meaning some more, some less). You can also choose to pay a fixed fee instead.

How do i research the stock, & shares for CTF?, is there a something out there like supermarket.com?

No. It doesn't work that way. There are 2000 unit trust funds each with different aims and goals. You invest to suit your aims, risk profile and what you believe the future potential and best invest strategy is.

To be honest though, you don't have a lot of choice with CTFs. A limited range of unit trust or investment trusts with a limited number of suppliers exist. Many of the CTFs are just white labelled products with children's mutual as the provider behind the scenes.

cheerfulcat

BOBSTER wrote: »

experience, knowledge and a bit of luck. Thats all a bit pie in the sky, any way of narrowing the bad odds?

Hi, Bobster,

Experience and knowledge come with practice and age, and I'm a firm believer in making your own luck...

Have a look at the Motley Fool if you are interested in having a go yourself.