Alternative to Child Trust Fund

[flyingjase]

Does anyone know if there is an alternative to a CTF?

I want to set one up for my 2 week old daughter but I don't like the way that at age 18 they have complete control over the fund.

Call me old fashioned, but if I had a lump sum given to me at age 18, I would have spent it on sex, drugs and fast cars and would probably be dead.

So I want an investment that you can put a modest amount into (£100 per month) that is put into equities rather than just cash and I can hold the purse strings on until I feel the time is right for her to take it on.

I already use my maximum ISA allowance so that is not an option.

Any ideas???

[mcflurry]

I stuck mine into a Building Society "book" account, with joint signatures required for withdrawals (mine + daughter).

Once my daughter is "old enough" she will be given access

[Tiggsy]

18 yrs + in a builing soc? Not really what the OP had in mind.

[flyingjase]

Thanks, but yes I'm looking for something more exotic that a b/soc account. Over an 18+ year term equities will always beat cash.

May sound like a silly question, but do they still sell endowments? That has the tax free benefits so could be a good vehicle.

[Tiggsy]

tax benifits? tax paid within the fund and package life cover chewing up the investment???

just use your wifes ISA allowance? in April the limit is £10,200 each....are you allready saving £20,400 in ISAs between you?

[munky]

I went down the CTF route as, hopefully, if I do my job as a father properly, I'll teach them the value of money and that when it's gone, it's gone.

Of course, they'll probably ignore me and spend it on crack

[russ_a]

I dont plan on telling my son about his until he is 21. When the letters arrive I will just hide the lot.

[allgonepetetong]

Is it worhtwhile buying premium bonds in your own name and contiue to add as you would the CTF?

You retain control, tax free growth and you might get lucky during 18yrs and hit the big one.

I'm considering the same so any thoughts welcome.

[Tiggsy]

Premium bonds...as has been covered before, two reason for having them:

1. You like to lend to the Government at 0.5%

2. You like gambling at odds many times worse than the lotto.

[allgonepetetong]

conclusive - thanks