#Collaborative post
Investing is one of those things that you do not tend to think about as much as you should, and oftentimes it can be a bit overwhelming. However, it is important to make good investments for your future and the future of your child or children.
Here are six types of investments to consider as a parent:
1. Retirement Fund
As a parent, you want to save for your child’s future. However, it is also important to consider your own future, and the best way that you can do that is through a retirement fund. You may not get this chance until your child gets older, but by saving while they are young, you will be able to have some money saved up for your future.
2. Stocks And Shares ISA
When you invest money in stocks and shares, make sure that you do it with a tax-free savings account or ISA. This is where you are allowed to put away up to £20,000 into an investment pot each year without having to pay taxes on any of the returns. This is a great way to invest your money because you can make a lot of money on it without having to pay taxes at all.
3. Child Trust Fund
The child trust fund was created under Gordon Brown in order to get kids started with their investment accounts at birth instead of waiting until they are 16. When you register with the Child Trust Fund, you will be able to invest up to £1,200 a year, and the returns on this fund are tax-free. If your child decides not to do anything with their savings, they can use it as a form of income after they reach 18 years of age.
4. ISA For Kids
If you want your child to have a higher chance of making a lot of money on their investments, then an ISA is the way to go. This is basically a tax-free savings account that children can sign up for themselves, and it will allow them to start making their own investments very early on in life.
5. Children’s Bonds
If your child wants to earn a lot of money in a very safe investment pool, then the children’s bonds are the way to go. These come in many different varieties, but you can choose from corporate bonds, government securities or even index-linked gilts, which give you an up to 6% return on your invested money. You get the maximum return on your child’s bond when they reach five years of age, and you can get it back at any time after that.
6. Property
If you want your child to be able to make a lot of money on their investments, then you will definitely want to consider investing in property as an option. You can put down as little as 5%, and your child can live in the house until they are ready to move out. They don’t have to pay rent, but you can charge them for the expenses that they rack up when they are in the house.
In Closing
The one thing you want to remember about investing is to not always put money into something just because it will earn you a lot of money. This will only cause your investments to lose value over time, and you don’t want that, especially when talking about your child’s future. As long as you consider other factors besides just the amount of money that you will be able to make, then you should have no problem finding good investments for your child.