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Child Trust Fund

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Hi all,

My nipper was born in November and so we received a CTF voucher, only £50 but better than a kick in the teeth.

Now where to invest it?

Having done a bit of research this evening I am overwhelmed by information so i'm posting this in order to hopefully save some time and get some assistance choosing the right provider.

Can anyone recommend a CTF that performs well and has low fees?

I'd be looking to add £100 a month to it too.

Some of the information i've read indicatse that CTF performance is generally pretty cr@ppy.

Might I even be better just chucking the £50 voucher into any old CTF and putting my £100 a month into some other fund for my kid?

Cheers!

Spot

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Hi all,

My nipper was born in November and so we received a CTF voucher, only £50 but better than a kick in the teeth.

Now where to invest it?

Having done a bit of research this evening I am overwhelmed by information so i'm posting this in order to hopefully save some time and get some assistance choosing the right provider.

Can anyone recommend a CTF that performs well and has low fees?

I'd be looking to add £100 a month to it too.

Some of the information i've read indicatse that CTF performance is generally pretty cr@ppy.

Might I even be better just chucking the £50 voucher into any old CTF and putting my £100 a month into some other fund for my kid?

Cheers!

Spot

My daughter's CTF is with Tesco's.

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Hi all,

Might I even be better just chucking the £50 voucher into any old CTF and putting my £100 a month into some other fund for my kid?

Yep - I'd do that. Most providers have relegated CTF's to the crapbox where they put widows and orphans and other safe non rate-tart type people who they can, as Martin Lewis puts it, Suck Slap & Flog to. I'd stick your extra £100 in something decent - it's all tax-free anyway, and you might as well try to get 2% or more

(if you can!)

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I'd leave it at 50 quid in a CTF, then spend the other 100 quid a month on gold bullion, that's about a sovereign every two months at current prices. Do bear in mind the time taken to save up for and purchase a sovereign will steadily increase from two months to longer as time goes on though, until it starts exponentially increasing that is.

Alternatively, the effects of 5% inflation (we'll use the government figures for arguments sake - not that they are true) on a 2% CTF account is currently a negative yearly yield of 3%.

All things beingequal (inflation rate etc.), the compounded effect of 3% negative interest on the initial 50 quid by the time the child is 18, will mean the CTF is worth £28.90 in today's money. Still, a negative real rate of -3% is probably better than sticking it in a money box and getting a negative rate of -5% annualised, so should be grateful for the opportunity really.

Edited by General Congreve

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I'd leave it at 50 quid in a CTF, then spend the other 100 quid a month on gold bullion, that's about a sovereign every two months at current prices. Do bear in mind the time taken to save up for and purchase a sovereign will steadily increase from two months to longer as time goes on though, until it starts exponentially increasing that is.

Alternatively, the effects of 5% inflation (we'll use the government figures for arguments sake - not that they are true) on a 2% CTF account is currently a negative yearly yield of 3%.

All things beingequal (inflation rate etc.), the compounded effect of 3% negative interest on the initial 50 quid by the time the child is 18, will mean the CTF is worth £28.90 in today's money. Still, a negative real rate of -3% is probably better than sticking it in a money box and getting a negative rate of -5% annualised, so should be grateful for the opportunity really.

Preaching to the converted General :D

The wee one is already into PMs. This is a bit of diversification.

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How about N.S & I inflation bonds. Interest-free - linked to RPI. The nipper's not going to touch it for a while, so migtht not be a bad thing to lock it away for 5 years at , say, 5% tax-free per annum = equivalent to 6% or7% gross if you're a tax-payer

And no - 5% is not a prophesy - I'm not that daft. The reason a lot of adults don't buy the inflation bonds is because we think or fear we might need access to the money before 5 years is up. But for a small child - perfect !

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Watching with intrest....

Out little 'uns 17months now so we got £250, put it in Britannia account and will leave it at that. The advisor as good as told us they'll do ****** all with it.

We've saved a good few hunded quid that she's had for b'days and alike and want to do something with it, just sitting in a savings account at the moment.

The missus won't let me buy gold / silver with it (I've squirreled her a Kruger away anyway!).

There simply isn't many options!

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I'm going to stick the £50 into a F & C shares CTF and may chuck a few hundred more at it for good measure.

Any money given by friends and relatives in the future i'll let accumulate until there's enough to buy something like a Soveriegn.

For regular saving for the little one's future i'm just going to have to do some more research and see what looks like the best bet.

I'll post back when I have more info.....

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I'm going to stick the £50 into a F & C shares CTF and may chuck a few hundred more at it for good measure.

Any money given by friends and relatives in the future i'll let accumulate until there's enough to buy something like a Soveriegn.

For regular saving for the little one's future i'm just going to have to do some more research and see what looks like the best bet.

I'll post back when I have more info.....

I think that GC already gave you the best bet.

If you have £100 a month to spare then buy a half sov each month or a sov every 2.

Cash sitting in a bank for 18 years is just gonna get raped and raped and raped some more.

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We save our child benefit independently of our CTF so that only has the original £250 in it. I don't see the point of tying up other money in Gordo's strings attached, dead end investment vehicle. I can comfortably waste my own money without Gorgon's help.

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  • 284 Brexit, House prices and Summer 2020

    1. 1. Including the effects Brexit, where do you think average UK house prices will be relative to now in June 2020?


      • down 5% +
      • down 2.5%
      • Even
      • up 2.5%
      • up 5%



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