When it comes to saving money, many people will chose to put some aside for their children’s future. However, a Child Trust Fund set up by the Government could mean children already have up to £1,000 in the bank. Although many will save money for their children’s future, one scheme means their child could already have up to £1000 in a Child Trust Fund.
This is a fund set up by the Government which automatically gives children a sum of money at different stages in their lives. The money is deposited automatically and it can be claimed when children reach a certain age. On top of this basic payment, low income families received double payments each time and could have as much as £1000 saved per child. Even if parents did not open a Child Trust Fund account, they will still be able to access the money as the Government will have automatically opened the account and deposited the money on the child’s behalf. This benefit applies to all children born between 1 September 2002 and 2 January 2011 and only applies to those who are eligible for child benefit. The money is available to access when the child turns 18-years-old. At this stage, the savings can either be reinvested into a similar adult ISA or can be used to fund immediate expenses such as university fees.
Avoiding online investment scams
It is hard to get accurate data on the extent of pension fraud, but it is certainly a serious problem. Which.co.uk research showed that the average loss for those affected is £82,000. The factors it identified as making people vulnerable included accepting cold calls (23%); interest in pursuing high returns in esoteric investments (23%); gaining access to their pension early (17%); and seeking guaranteed returns (13%). These are definitely things to avoid however, there are other signs to help you spot fraudulent investments. Start by looking out for unrealistic returns or advisers pretending that risks don’t exist. No investment can avoid the constraints our global system places on investments. Next you should investigate the people. They should also appear on the FCA register as regulated individuals and their career history will be detailed. There are a couple of other shortcuts that can help you. A well-known and profitable company has a lot to lose from bad practice and is therefore unlikely to do it. Where there isn’t a recognised brand you can always ask to visit their office. You should expect to see an established operation and many full-time members of staff. Most fraudsters will either be very short-term operations where your money disappears with the people involved or they will be longer-term but offering unrealistic returns by using new money to pay off old investors (effectively a Ponzi scheme). If you can spot these signs you should be able to avoid most scams.
Financial Advice Including Pension Advice, Bristol
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