We've got some money from the government for one of our children because of a political election move to encourage parents to start saving for their children. Well, we're saving anyway but the extra income is welcome. We do have to decide where we put the money and what sort of account. There are two types: cash saving where ROI is lower but guaranteed or a stakeholder account where money is invested in stocks and shares of large industries. Now I don't really have a clue about financial risk. But as this is extra money I'm tempted to try the stakeholder account, however I do have some reservations.
The CTF website is I think biased towards this kind of account and as its a government owned website makes me slightly suspicious. It mentions a large number of times that over the past forty years the stock market has grown, even when some years have been lean. There is a compelling argument for investment BUT the downside is that nobody can predict the future and it might lose money for my child. I'll wait to see what Motley Fool says in its round-up of providers in April.
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