While we all want to save for our children and grandchildren’s futures, this is becoming increasingly difficult in the current economic climate. Household savings in the UK plummeted to a five-year low during October last year, for example, while inflation continues to grow at a disproportionate rate to earnings.
With citizens struggling to save for their own futures, it’s increasingly difficult for them to consider providing for their loved ones. In this post, we’ll ask what steps you can take to save for your grandchildren in the modern age and identify the resources that will prove invaluable.
Compare the Market for Junior ISA Accounts
If you have a fixed amount of disposable income that you’d like to save on behalf of your grandchildren, you may want to consider investing this directly into a Junior ISA.
The key is to compare the real-time market to identify the best rates of return, using objective and informed resources such as Money Saving Expert. You should also look for ISA accounts that boast a higher than average savings rate, as lends tend to reserve their most competitive packages for this type of product.
Even in the current market, there are junior accounts that offer a savings rate of around 3.5%, so this is definitely something to consider when appraising the future of your dependents.
Seek Out Financial Planning Advice
In some instances, you may need to consider more creative methods of generating income and saving this on behalf of your grandchildren.
It is well worth speaking to financial planning experts such as Tilney, for example, as firms of this ilk can help you to optimise your assets and accumulate wealth as efficiently as possible. You can then look to invest more into your grandchildren’s accounts, without compromising on your own finances or lifestyle.
Companies such as Tilney will also help to manage and distribute your estate, enabling you to create a will that realise the true value of your assets. This also safeguards the long-term future of your grandchildren, so it can be well worth its weight in gold.
Identify Private or Small Banks for Bare Trusts
You may choose to establish a bare trust, through which the beneficiary retains the absolute right to the capital and assets that are included within. Establishing and operating this type of trust can be challenging, however, particularly when dealing with large, central banks.
To avoid these issues, consider using smaller, private banks to manage your bare trust. This will most likely allow you access to a personal account manager, while it will also minimise the paperwork and regulatory red-tape that is required on a monthly and annual basis.
Private banks may also have a greater knowledge of how bare trusts work, helping you to realise the value of your capital and safeguard your grandchildren’s future wealth.
Article Submitted By Community Writer
