Ask The Experts Answers

Hi Steve, We have about £50 a month to invest for our first Child who was born in January. We are considering

• £15 per month to Child Trust fund savings in CASH
• £15 per month in a traditional savings account with a building society
• £20 per month in a child Stakeholder pension

Is this a good spread. We are tentative investors having lost a lot of our money in sharea isa’s. Maxine

Answer

Hi, at the end of the day it’s your decision but bearing in mind if your child was born this year and the child trust fund builds up money for when they are 18 this is a fairly long term investment. Historically over this particular time period you would have always been better off in equity backed investments than cash investments, over a shorter time period cash may be better.

I can completely understand where you are coming from as many people’s investments have lost value, in the last year particularly, I would generally say anything you can do to give your children a helping hand whether or not its for their pension or just building up savings is better than nothing and if you are more comfortable with cash investments to keep things simple then that’s fine.

Investment backed savings do need to be monitored to make sure the funds you choose are correct going forwards with constantly changing economic conditions so if you don’t want to do that then what you are proposing would seem a fairly sensible idea. Without knowing more about your circumstances its difficult for me to comment any more than this I hope you understand, if you would like any help choosing the pension I am more than happy to help.
Regards, Steve

Steve Weisner
Independent Financial Adviser
Radcliffe & Newlands
5th Floor Crystal Gate
28-30 Worship Street
London
EC2A 2AH

Email: sweisner@myeggnest.com
Tel : 020 7382 0437
Fax : 020 73740462  

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