10 Tips to Invest Now for Your Child’s Future

Our children are the future and unfortunately , some will be dealt a cruel blow due to the sole fact that their parents failed to plan ahead. Let’s look at ten ways which will help you to provide for the financial welfare of your little ones.

1. Accruing Money for a Rainy Day

One of the simplest methods is to put a certain amount of money away at the end of every pay cycle. Be sure not to access these funds unless it is absolutely necessary. This liquidity will undoubtedly grow over time.

2. Forex Ventures

The Forex sector is the most liquid marketplace in the world today. Well over $3 trillion dollars is present during any given day, so it only makes sense to consider this option. As you will be comparing the value of one currency against another, the chances of accruing a short-term profit are always realistic. As losses can occur from time to time, be sure to perform research in advance.

3. Spread Betting

Spread betting is associated with several interesting advantages. You can make money even during a falling marketplace, the majority of your profits are free from capital gains tax and trades can be executed in a matter of minutes. The best way to leverage these benefits is to employ the help of a trusted trading partner such as CMC Markets.

4. Junior ISAs

A junior ISA is another popular option. Much like a standard ISA, you will be able to place your funds into these accounts and any earnings are not subject to taxation. Children cannot access them until they reach at least 16 years of age, so this is an excellent way to slowly germinate a viable “nest egg”.

5. Managed Portfolios

If you are completely unfamiliar with the world of investing, it is a good idea to seek the help of a wealth manager. He or she will be able to create a diversified portfolio depending upon your unique financial requirements.

6. Bank Accounts

While investing is always a worthwhile option, never forget that standard bank accounts can prove fruitful over time. Joint accounts are established in the name of the parent and child, so you will be able to deposit funds at your discretion. Once your son or daughter is of legal age, they can be granted sole custody.

7. Trusts

Trusts are often used by those who are looking to set up liquid funds in the event that they pass away or suffer from a grave illness. The settler nominates a trustee to look after these assets. A “bare” trust provides immediate access to such funds when a child turns 18 years old while a discretionary trust is more flexible in terms of age as well as how many beneficiaries are included.

8. Pension Plans

Pensions are wise to possess at any age. This is even more relevant when referring to any type of inheritance. There are various types of pensions on the market and it is wise to speak with your financial advisor to learn more.

9. Long-Term Assets

Long-term holdings such as precious metals or land will provide you with a conservative edge. As the value of these assets is likely to rise over time, they are ideal if you have been looking to avoid the potential volatility associated with open financial markets. If you plan on investing in any of these mediums, it might be a wise decision to study them very carefully before making a decision. You can invest in precious metals, for instance, through Gold & Precious Metal Accounts where money can be deposited periodically and you can expect good returns over a long period. A real estate agent, on the other hand, can assist you in purchasing a land or home for investment purposes.

10. Private Funds

Private funds function very similar to the aforementioned trusts. One of the the major differences is that you may be able to spread your investments across a wide array of assets. These can include stocks, treasuries, CFDs, spread bets and index-based positions. A fund manager will provide you with detailed advice. He or she also takes into account rates of return, time frames and any other desires that you may have.

These are ten effective ways to provide your child with an extra sense of fianancial “breathing room” later in life. As none of us knows what the future has in store, a bit of preparation today can make all of the difference in the world tomorrow.