In our weekly series, readers can email any questions about their finances to be answered by our expert, Rosie Hooper. Rosie is a chartered financial planner at Quilter Cheviot and has worked in financial services for 25 years. If you have a question for her, email us at money@inews.co.uk.
Question: I am a 76-year-old grandfather and have contributed to my grandson’s pension since he was born seven years ago. It is now worth £63,315. How can I make sure I choose the right investments for the long term?
Answer: Investing for your children or grandchildren can be one of the most rewarding things to be able to do in life, helping to establish their financial futures and ensure they are on a solid footing long after you have passed. The amount saved in your grandchild’s junior pension is an impressive feat after just over seven years, and a return of over 70 per cent is not to be sniffed at.
Shorts
Junior pensions can be one of the most effective vehicles for growing wealth over the long term. A junior pension has an allowance of £2,880 per year, which becomes £3,600 once tax relief is factored in.
