Investing early to fund a child's education has been part of the savings scene for decades and continues to make sense because it benefits from the power of compound interest. What better way to start your working life than without the need to pay off huge student loans?
That's why your children need to understand that starting early is the first rule of saving.
As they grow older others include:
- Invest enough to achieve their objectives.
- Invest in equities.
- Review savings strategy regularly.
- Plan carefully how to withdraw money to maximise tax breaks and value.
Once you've sorted out their future what about your own? Far too many of us leave our retirement planning on the backburner too long. Here are a few recommendations:
DO...- Add up the income you're likely to get from all sources - for example, pension plans, savings, investments, insurance policies or benefits.
- Keep back a healthy cash reserve.
- You don't want to have to start withdrawing from equities when they are at one of their inevitable low points.
- As you approach retirement, think about how you will take your pensions. You might need to reduce the risks your investments are exposed to. A SIPP puts you in control.
- Track down lost pensions, bank or building society accounts or other investments and we can help you to consolidate them.
- Shop around for the best annuities, savings accounts and other investments - we can help there, too.
- Put off your retirement planning - the sooner you know where you stand, the sooner you can get things sorted out if you need to.
- Forget to think about your partner and dependants when making financial arrangements.
- Expect pension providers to automatically track you down to pay your pension.
Make it easier for them and you by getting in touch. Now you can prepare for golden retirement!
Danny Cox
Head of Financial Practitioners
