..to worry about my child's future?

[MsToni]

(I don't know if there's a finance section on here so apologies if I'm posting in the wrong section)

*

I know I am NOT BU to worry about it but I think I am definitely U to be obsessing and fretting about it.

I have the following for my son;

1. CTF [£100 every month]

2. ISA [£250 every month]

3. Personal Pension Plan [£250 every month]

4. Life Insurance [500k, I pay £250 every month]

5. JISA (When its rolled out)

They've all been running for about 20 Months but they don't add up to much IF anything was to happen to me, say now.

Ideally, what I want is a set up, a kind of trust fund, where my child's dad and I put in some bulk amount - say 500k - and have a company invest it (with a guarantee that the primary fund is secure - and any profit or interest is additional. Does any one know if something like this is available in the UK.

I have made an appointment to see an IFP in the week to discuss options but I really would appreciate it if some of the more learned members can offer suggestions about planning / saving for a child's future.

Also, I'm hazy about what will happen to the CTF when JISA is rolled out. Does the account continue to operate? Will I be able to open a JISA for my 22mo?

Thank you.

Can you afford to put 1/2 million in each? If you can, why on earth are you worrying about money?

Do you think you are suffering from PND? I got very anxious about my children's future after childbirth. It was the worry of anything happening to me; I didn't know how they would cope.

Do you think you are transferring your worry about them coping without you into a financial problem?

There is a legal and money section. There are certain guaranteed
Investment products that protect your capital. The downside with that is you have limited upside. The alternatives are to have a mixed portfolio with only some
Of the cash in investments that may lose
Out. Your Ifa probably better placed to advise. Also dont forget tax and inheritance tax would come off
The investment pot so your £500k would
Be net of that unless you invest or
Structure it in a way to minimize tax.

So you've got £850 to put away each month just for your son. Well done.
Are you really worried or is this a stealth boast?

Either way I think you need to get a grip.

Atswim makes a good point- my worry about me or dd or dh Dieing is very much linked to stress and hormones.

I am buying my son a house for his investment. He can have the rent until he wants to use it or sell. (he is 6)

What is a jisa?

atswimtwolenghts.....I think having financial security makes it easy to survive if anything bad were to happen.

I've been having really horrible thoughts about me, child's dad dying and no one to look after our son, or not having the means to give him a good/secure life. It's been like this for about 6 months and its gotten me really panicking.

Why is your life insurance £250 per month? 39 years level cover £250.000 cover from Aviva etc is only around £17.00 per month. That seems a lot.

Sorry in advance if I've missed something glaringly obvious which explains this - tired.

Bragging on here just gets you laughed at - you silly woman.
You have half a million to invest, plus a spare £850 per month to top up, and you are worried? The interest alone on half a mill is around 300 quid a week, so i reckon you are taking the piss!

We have put aside a considerable sum for all three of our children to cover their higher education and a deposit on a first home. That way, if we die during their childhood or our financial circumstances change for the worse, their future won't be compromised.

I do think you are suffering from some kind of depression as it is you are already putting away a nice tidy sum.

I put away nothing, yet I have a 23 year old now finishing Uni which he got through himself and he is starting his first proper job in July paying £45k a year plus bonuses.

Providing you can feed and cloth your child and be there emotionally for them, money really means nothing.

Thank you for the quick responses.

Hardnsleazy. Thank you. I'll search for it. Its the tax and inheritance tax, i'm worried about. It's about 40% isn't it? It will reduce whatever we have saved for him.

Widowwadman. I'm sorry you feel that way. When both your parents drop dead of cancer in their 50s, it makes you want to sort your life out - fast.

Breathing. Yes, his dad wants to do that do. We are currently looking bit everything seems so expensive and overpriced in London.

JISA is Junior ISA.

Thanks. I have nothing to leave to my poor children other than a mortgaged house, small amount of personal life insurance and my laughably tiny death in service cover from work. Oh, and their CTFs which are modest but all I can afford. If I die tomorrow they don't get much other than the memory of their mother working herself stupid to keep a roof over their heads.

You really don't need to worry about the amounts you've left to your son, unless you're planning on setting him up as Little Lord Fontleroy as some kind of parental replacement.

Relax and concentrate on giving him happy memories of YOU, that's worth far more to him than a million pound legacy.

sorry Im not sure what isa is, Im not british

I put some money into an account each month, and we are planning to buy a house but Im banking on my son making something of himself when he gets older. Id be disappointed if he wasnt self made tbh. (But hope what we can provide will help him on his way)

WolfShapedBullet

I asked if i could pay higher premium and I was told yes. Its less than 2 years, if i drop dead now, will the insurance company pay out 500k?

SparklyCloud
Again, sorry you feel that way.

Bonsoir
Thank you.
The savings, will they have to pay tax on it? I haven't saved anything considerable at all.

FabbyChic
It doesnt add up to much - they are all less than 2 years old. I didnt have much growing up, just a very good education and struggle to get to where I am. My son is 22 months, he's very much alone if anything happens to us now.

agree - this is not a worry. I think it is silly to focus that much on money - I was far, far more interested in who DH and I would name as guardian for our child if we should both die.
Providing them with a safe and loving home with you is the main thing they need and then with another loving adult/s if the worst should happen is THE main thing they need. They don't need half a million quid and 'jisas' (yes, nice little bonus if you can have it but it is NOTHING to having a secure upbringing where you are given the grounding that will enable you to have the strength to go out and forge your own path in life)
My parents had nothing to give me and my brother other than the stable loving home - somehow, I have managed to get educated to degree level, have a family, have a career, have a house and be happy. And I didn't need ANY money behind me.
So please stop obsessing - it's nonsense.

Hardandsleazy

Is it this? www.mumsnet.com/Talk/legal_money_matters?

I'll ask the moderators to put the thread there. I posted here because it seems to get the most traffic.

Thank you.

Relax, it's likely nothing will happen to you

Fingers crossed, I hope not IaInfanta.

Genetics can be funny and I'm not about to take chances.

Also, can I add, I did write....."say 500k" in the OP. An ideal scenario, doesn't mean I have it.

I think this isn't a financial issue, really, but a huge concern of the OP's that something will happen to her.

OP, do you have someone you've nominated to care for your son if anything happened to you? What do you think would happen if you did die?

Given that you are so worried, maybe it's best you confront this with a counsellor. Your fear is rational in one way, yet irrational in another.

By spending so much you are trying to keep the future safe. What other things have you got in place, such as your own health and a guardian for your child?

I think you should go to a doctor and explain your intense anxiety. I was given anti-depressants in your situation and they really worked. It was as though I could put imaginary problems to one side so that I could focus on my life.

More to the point, have you though about alternative guardians for your dc if you and your child's father should both die whilst that dc are still young ?

All the money in the world won't help your dc after you are gone if you have not provided for their emotional well-being and care in a suitably well-thought out manner.

I do think you need to get better value for money re the life insurance, it seems extortionately high or are you only paying it for extremely high levels of cover temporarily until the savings you are putting aside build up ?

Do you plan to have more dc ? What happens if you have tucked away money in your first child's name and then your financial circumstances change dramatically before you can provide similarly for later born children ?

I think we all have periods where the idea of leaving our kids terrifies us, I do understand that.
But I do think the money thing is a complete red herring. as atswim and I said - the guardian thing is key.
Also agree that this intense worry may be a symptom of your general anxiety about your health; which is being transferred onto something you CAN do something about, eg money.
OP, make a will, appoint a guardian, put aside what you reasonably can that doesn't stop you all actually enjoying life, job done - no parent could do more.

atswim......

It does seem a bit of both...

My stepsister, or my child's aunty (the dad's younger sister) are designated guardians. If we die, I do hope they will look after our son, and have the means to look after him so he is not an inconvenience.

I have regular health checks, still cancer free so hopeful for the best, really.

Medication. I dont know. I dont want to be dependent on it and yet If its possible to actually live and be happy and not think this way, i'll gladly consider it.