140: Investing for Grandchildren
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Over the past year, 47% of grandparents invested more for their grandchildren.
Research by NatWest shows that while three quarters of parents or grandparents save for their children, around 83% of them stick to the “safe” option of cash savings.
But this isn’t safe, as the impact of inflation means that the purchasing power of these safe cash balances actually goes backwards over the longer term, which is a real danger considering that investing for children or grandchildren is generally for the long term.
The two main options when investing for grandchildren are a Child SIPP and a Junior ISA.
In this week’s episode I discuss how these investments work, their benefits and drawbacks and any tax rules that surround them. I also touch upon the various types of Trusts you could put in place for your grandchildren.
Useful links
More information on Junior ISA
More information on Child SIPP
More information on Child Trust Funds
More information on the 3 main types of trusts.
Get in touch if you’d like me to recommend an independent financial planner near you
Email at hello@retirementcafe.co.uk
Watch the episode on YouTube here.