Child Stakeholder Pension Recommendation?
Discussion
Not sure about a stakeholder pension by I started a pension for my son (I think it's a SIPP)...I did it to the maximum allowance that I could to get basic rate tax relief. I did my son's through a company called Transact who are a wrap provider...I have mine and my wife's SIPP,ISA's etc in there. It's reasonably prices especially given the flexibility if assets you can put in there. I bought some distressed debt issued by a Japanese company in mine and my son's pension....40% return in six months. Not many SIPP providers let you do that....
You don't say how old your children are but whilst you do only get basic rate tax relief it should be remembered that it's going to compound for an awfully long time.
Of course you would only do it if you are sure you won't need the money which I am and I max out everything else I can do that is tax efficient. Sadly there is nothing else around that allows you to save for your children or their education in any meaningful way. I took the view that it will hopefully take the pressure off my son to start a pension when he is in his 20's...he'll hopefully be paying off his debts having had a good time at University!
Of course you would only do it if you are sure you won't need the money which I am and I max out everything else I can do that is tax efficient. Sadly there is nothing else around that allows you to save for your children or their education in any meaningful way. I took the view that it will hopefully take the pressure off my son to start a pension when he is in his 20's...he'll hopefully be paying off his debts having had a good time at University!
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