The best investments for your family
When people talk about saving or investing inevitably the talk turns to “I want to provide for my family”. But the difficulty is in knowing what exactly would be the best investments for your family and in this article we are going to look at what are the best options for your particular family circumstances.
When possible it is best to start a financial plan, especially when looking to combine finances. If one partner has better credit than another it may be better to have separate accounts and then pay into a joint one.
In this instance the big issue is often what you can claim. Single parents may feel like they have to prove they can provide for their children. While there is nothing wrong with that you should get any support payments owed to you and get advice on benefits. It is also worth considering a trust fund to pay for university education for your children (this should be separate from your own funds).
Trust funds can often have negative connotations however they are recommended for children in general- they are a good way of giving them money in later life. As an investment relatives can add to it, helping to give children money that could come in handy when going to university, buying a car etc.
It is never too early to give children guidance on how money works. A savings account is a good way to save up and give children money in later life. However it is also advisable to teach them about saving- pocket money should be in exchange for work. May sound obvious but it is good to teach about saving early on.
One potential problem can be inheritance- both in terms of what people in your family get, who gets it and how they get it (money, physical items, property etc.) This is why having a will that is clearly laid out is important as well as financial advice to get the best deal in terms of inheritance tax.
Another issue is that clearly detailing who gets what and why can also avoid a lot of arguments in the future!
Finally whatever you invest in it is always a good idea to think where that money would go otherwise. It can’t be emphasised enough- any investment can go down as well as up!
This is why it is best to invest carefully and if possible to do so with money that won’t harm your family if you lose it. With investments in general it is a good idea to balance savings with other types of investment in order to spread the risk as much as possible.
If you would like to know more about planning for your family’s future and the best investments for it please contact us today and we will be happy to go over this in more detail to find the ideal financial options to suit the needs of you and your family.