Shepherds Friendly Junior ISA Review
Making the right decisions for our children’s future is one of the big issues that many of us worry about. Some smart moves right now can make life far easier for our kids once they grow up and have their own financial commitments to worry about.
Bearing this in mind, it is no surprise to see that investing in a tax friendly ISA is one of the most popular ways of planning for the future. With the Shepherds Friendly Junior ISA account, you get to invest in a way that makes a lot of sense and is also easy to arrange.
You probably already know that an ISA account is a way of getting a tax efficient savings account. In the case of this Junior ISA, it is perfect for youngsters under the age of 18 who don’t already have a Child Trust Fund set up in their name.
Whether you want to start saving for your child’s university fees or for their first home, the sooner that you get going the better. To open a Junior ISA account in their name you just need to be their parent or legal guardian.
Interestingly, contributions can then be made to this ISA by anyone. This means that both parents, grandparents and other friends or family can contribute on a regular or occasional basis if they wish to.
It is also worth noting that it is possible to switch over to this kind of account from a Child Trust Fund if you prefer to do this. Of course, the tax free nature of a Junior ISA like this makes it a very attractive way to save money month after month and year after year.
A Flexible Approach
For most parents, one of the most important issues when investing for their children is the flexibility on offer. Given the long timescales that this usually involves, there is every reason to believe that your financial position and goals could change over the years.
Thankfully, the Shepherds Friendly Junior ISA account gives you all the flexibility that you need to run this savings account in a way that suits you. You can start or stop instalments whenever you want to, as well as altering the amount as you see fit.
The plan can be opened with a £10 monthly payment or with a single deposit of £100 if that suits you better. You can then work out the best way to proceed as the months go by and the account grows.
How the Money Is Invested
So, what will happen to your child’s money once you put it into the ISA over time? As this is likely to be part of a long-term investment strategy, you will want to see it grow in the most sensible and impressive way over time.
The good news in this respect is that the primary investment strategy here is in stocks and shares, where higher levels of growth can typically be achieved. This means that you give the money every possible chance of growing in the way that you would like to see it grow.
Naturally, the effectiveness of the investment is going to come down to the quality of the decisions that are made on it. For this reason, the investing is done through an experienced fund manager, so that you don’t need to worry about studying the markets every month.
Another advantage of the Shepherds Friendly Junior ISA is that your money is invested sensibly and in a way that will attempt to mitigate the risk of stock market volatility. This is great news for parents who are worried about the dangers of seeing their child’s nest egg wiped out due to bad market conditions.
Of course, it is good to remember that this is still an investment account and not a savings account, so the value of your investment could rise as well as fall and your capital could be at risk.
A Gift to Get Started
Obviously there are some powerful reasons for opting for a Shepherds Friendly Junior ISA account in what we have looked at so far. However, what if you need some sort of extra incentive in order to make the final decision?
Well, in that case you will be delighted to see that there is currently an excellent offer to get you started on this savings method. Once you set up the account online and get the first instalment paid then you are rewarded with a Love2Shop voucher code for up to £50 that can redeemed in any one of hundreds of different retailers.
There is no need to think that you need to be an internet expert to open up a Junior ISA online with Shepherds Friendly. Indeed, you can very quickly get started on their site and have the account up and running in no time.
Choosing how to invest money for a youngster is a big decision, so take the time to look at the Shepherds Friendly Junior ISA to see how it could help you build a great future for your child.
Remember that the value of investments can rise as well as fall, meaning your initial capital may be at risk.