CTF options

swanny65

We have just made our daughter aware that she has a CTF with BMO (previously F&C) worth about £11000.00 (not bad for £25.00 a month). I had chosen the investments in the CFT

She is 17 in November and wants me now to find what she should do next. She is at college, works hard (has 3 jobs all paying about £7 to £8 an hour) and is level headed.

She wants to use the money to put down a deposit on a house in a few years time, once she has left university. So we are looking 5 years ahead or more...... She understands the investment could go up or down and didn't seem to bothered by the hit it took in 2018, which it has now recovered.

I know the CTF ends when she is 18 but other than that i am slightly clueless. I have not switched to a junior ISA and there seems little point doing so now. We were thinking leave in the CTF wrapper until 18 might be a starting point - puts thing off for 14 months. But there may be a better/more suitable product out there now for her.

If we do move the lump sum i was thinking of her holding back say £1000 for emergencies - say in premium bonds.

So what would you suggest we do next.

Thanks very much

p.s. this will also help me decide what to do for the best for my son who is 16 month March and also has a CTF

DrSyn

If the money is expected to be used within the next 5 years it should be in a savings account.

You imply she was not bothered by the hit it took in 2018. When people actually lose money its a different matter.

You want to know how bad things can get? Take a look at the charts next to the photo. While its for the USA, they had an affect in the UK:-

https://www.getrichslowly.org/bull-bear-markets/

How would you both react to these falls? :eek:

If your daughter is going to invest for longer than 5 years, the chart on this website might be of guidance to her.

https://www.vanguardinvestor.co.uk/investing-explained/what-are-lifestrategy-funds?intcmpgn=lifestrategyfunds_learnmore_link


She could consider these three types if ISA of course:-

https://www.moneysavingexpert.com/isas/


As for the premium bonds, she might win a £1M.

cloud_dog

swanny65 wrote: »

We have just made our daughter aware that she has a CTF with BMO (previously F&C) worth about £11000.00 (not bad for £25.00 a month). I had chosen the investments in the CFT

She is 17 in November and wants me now to find what she should do next. She is at college, works hard (has 3 jobs all paying about £7 to £8 an hour) and is level headed.

She wants to use the money to put down a deposit on a house in a few years time, once she has left university. So we are looking 5 years ahead or more...... She understands the investment could go up or down and didn't seem to bothered by the hit it took in 2018, which it has now recovered.

I know the CTF ends when she is 18 but other than that i am slightly clueless. I have not switched to a junior ISA and there seems little point doing so now. We were thinking leave in the CTF wrapper until 18 might be a starting point - puts thing off for 14 months. But there may be a better/more suitable product out there now for her.

If we do move the lump sum i was thinking of her holding back say £1000 for emergencies - say in premium bonds.

So what would you suggest we do next.

Thanks very much

p.s. this will also help me decide what to do for the best for my son who is 16 month March and also has a CTF

OP, my DD is approx 15 months younger but she has (in her name) a savings cash account and and a S&S JISA. I transferred it from a CTF simply to allow more provider options.

My hope is that she will retain the S&S investments and migrate the money in to a LISA at 18. She can use the cash savings as she sees fit to (hopefully in a considered manner for a teenager).

We also have investments and savings in our names attributed for her.

xylophone

It might be time to consider a transfer to a cash JISA if she is likely to need the money within a few years.

Coventry BS offers 3.6%.

The money will not be available to draw out until she is 18 - I don't quite understand the reference to premium bonds?

When she is 18 she can open a LISA.

https://www.moneyboxapp.com/cash-lifetime-isa/

She could hold the balance in the best paying account she can get and gradually transfer into the LISA.

https://www.moneysavingexpert.com/savings/lifetime-isas/

swanny65

Thanks for the updates.

Would a help to buy ISA also be a good option. She could put in £1200 and then earns enough to afford £200 a month thereafter - at least until she goes to Uni.