Tax Exempt Savings Plans (TESPs)

Were your children born before Sept. 2002 and subsequently miss out on the government's £250 voucher to jump start their Child Trust Fund?  Not all is bleak!  there are many alternatives to the CTF which are just as tax efficient and but without the initial £250. Below are just a few examples of how you can save for your children if they do qualify for the Child Trust Fund.

Unit Trusts for Children Whatever your children or grandchildren dream of doing when they grow up, why not indulge more than their imagination? Whether they want to travel the world or step onto the first rung of the property ladder, fund their way through university or organise the wedding of their dreams, you can give them a great start in life by investing for their future with a Legal & General unit trust. And whether you have a little to invest or a lot, if you start now you could begin to grow a fund that will help you give your child a great financial start in life. Legal and General's Investing for children Providers with Unit Trusts for Children F&C's Investing for children

Children's Stakeholder Pensions You can now save towards your children's retirement with a Children's Stakeholder Pension in your children's name. This is a government backed scheme where you can invest up to £2,808 each year, net of tax, and the Inland Revenue will add 22% basic rate tax relief to this, bringing the total amount invested up to a maximum of £3,600 a year. By starting a Children's Stakeholder Pension young, your children's pension pot will have a huge boost in comparison to those who waited until their working lives to begin paying towards a pension. A contributions of £3,600 per annum between ages of 0 - 16 yrs (and then stopped) could leave your child with a potential pension fund value of £1,230,000 at age 60 (these projections are based on a medium growth rate of 7% with an Annual Management Charge of 1%, courtesy of Axa Sun Life). Contact Steve Weisner - Senior Independent Financial Adviser - at Radcliffe Newlands on 0845 0217000 or Email Steve where he'll be happy to answer all your Children's Pension questions- Please mention MyEggNest

Children's Individual Savings Accounts (ISAs) Individual Savings Accounts (ISAs) allow people to save their money in a range of investments such as cash, stocks and shares. Unlike investing directly in these products, investing through an ISA provides certain benefits. An ISA is often referred to as a “tax wrapper” which goes around your savings, protecting them from paying certain taxes. Many parents are using their own ISA allowance to invest for their children (as the age for investment is 18 yrs). Parent can put away upto £7,000 pa each. You can save cash in an ISA and the interest will be tax-free and/ or you can invest in shares or funds in an ISA and any capital growth and dividend income will be tax-free. Providers with Children's ISA Legal and General's Ethical ISAs Contact Steve Weisner - Senior Independent Financial Adviser - at Radcliffe Newlands on 0845 0217000 or Email Steve where he'll be happy to answer all your Children's ISA questions - Please mention MyEggNest