Nischa Shah
Life is complicated… personal finance doesn't have to be. Ex-investment banker turned creator.
Browsing 9 posts
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Life is complicated… personal finance doesn't have to be. Ex-investment banker turned creator.
Browsing 9 posts
Showing 1–9 of 9
Follow @nischa.me for more money tips Here’s how to set your kids up for life - step by step. Start early, follow the plan, and you could turn them into millionaires. These numbers assume an 8% annual return - based on the stock market’s historical average. #moneytips #moneytalks #financetips
Key Takeaways
Two things you can do ASAP to set your kids up for life coming from a qualified accountant and a former investment banker. Number one, open a junior ISA for them and invest some money into index funds within this tax advantage account. An 8% average return if you put in £100 a month from the day that they're born, they will have about £47,000 by the time they're 18. If you have the means to max this out at the £9,000 a year limit, your kid would have over £351,000 by the time that they're 18. Number two, open a junior SIP for them. The government will give you free money in terms of tax relief, top of your contribution by 20%. Assuming you max this out and you put £240 a month and then stop paying into it by the time your child's 18 and no one puts any more money in after, then by the time of retirement, your kid's pension pot will be worth over £2.5 million. Save this chart. I'm Misha and follow for more money tips.