Ever found yourself doing things for your kids without really having thought it through?
Music lessons perhaps? Thinking a mild curry would be fine? Play-Doh when you also have greedy dogs?
Sure, you soon realise the error of your ways, but not before it’s too late.
Is not thinking why so many miss an amazing opportunity to make a massive difference to their children’s futures?
So many are using Junior ISAs for their kids’ futures, but not in a very sensible way.
Putting money in a “savings” JISA virtually guarantees it will be worth less (due to inflation) in years to come than it is today.
However, putting it into an “investment” JISA can virtually guarantee that it will be worth more down the line than it is today.
That could really make a difference?
The trick is investing mainly in shares / equities. Given enough time they have always done better than inflation.
How much time is enough to be sure? We’d suggest 10 years. Most JISAs will run for much longer than that.
That’s what I’ve done for my sons, aged six months and two and a half. They both have pensions too.
In total there’s about 15% more money there now than was put in. That’s about 10 years of interest at current levels?
They’ll thank me for it one day.
But still, even with the weight of evidence against, most choose the so called “safe” option of cash. But what’s “safe” about losing money to inflation each and every month?
£858 million was paid into junior ISAs during 2016-17, and over 60% of that is being held in cash accounts.
That’s a real wasted opportunity.
Have a good hard think about what you’re trying to achieve and then take action. Before it’s too late.
Or get in touch and we’ll happily talk you through this and point you in the right direction.