..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)

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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.

thetideishigh
Yes, we have. Stepsister/Aunty. They agreed to be joint guardians.
TBH, re the life insurance, I was thinking that if something happened to me, would they pay out the full sum if I don't have substantial premiums?
Re more children, I'll include them in any provisions I'm making for my son and the guardians will know its for them.

sleepingsowell
I have made a will, guardians appointed. I'm just terrified, rightly so, and now I'm worried I'm going crazy - over worrying and panicking.

Oh my, you have £850 going spare to stick in savings and you're worried? My poor poor dc's have got no hope . All they've got to take them into adulthood is thier CTF's (which I may add I have not added too ). Stop worrying, if you have that sort of disposable income you are (compared to me) considerably wealthy.

then it's not a money issue MsToni but something else entirely. Most of us, as I said, have these periods of worry about it but you do what you can (as you have) and then you just have to let it go, because you can't control whether you do or don't die or not!
Have you got anyone you could have a really long deep chat with, about your current worries? Counselling could be an option but sometimes having some profound chats with someone you know can work just as well imo.
And if you still find you're so panicky about it please, please go to the dr! I have worked in Mental Health services in the past as I have seen many a time just how fantastic anxiety/depression meds can be. You don't need to be 'dependent' on them - sometimes you take them for a shortish period only - but they could help you to break this cycle of worry and panic.
All the best, do see your GP.

oh, and before you even think it, don't see it as a weakness if you do go down the route of some sort of meds for anxiety/depression.
It is a sign of strength because you are taking the decision not to allow this anxiety and panic to influence one more day of your precious time with your DS while he's so young - this time is gone SO quickly, don't let it pass with you wasting your time and energy like this.

Actually, I would be happy enough if we had so much left over at the end of the month to save. I think you are already doing great with the plans you have for your child's future.

Sleepingsowell's advice is spot on, you are anxious and worried out of all proportion to the actual risks, it would be nicer to relax as you have made excellent provision for your little boy. I would take her advice and talk to some good friends about your fears, or see your doctor and explain how anxious you are, it isn't common to be that anxious about financial worries when you are relatively well off (if you had my financial worries, that would be much more rational!!!)

How will the children learn to fend for themselves if you are putting away all this money for them?

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

That seems like a very high premium for that SA to me. I can only assume that the underwriters have loaded you for some reason, otherwise that seems terribly excessive.

"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? "

Read your policy document? That will tell you the answer. On what basis did you ask to pay higher premiums - what did you get for that?

"TBH, re the life insurance, I was thinking that if something happened to me, would they pay out the full sum if I don't have substantial premiums?"

Read your policy document. It is unrelated to premiums size, whether they pay or not depends on whether the claim meets the criteria in the policy.

It sounds as if you dont' really know what you're putting your money into at the moment. For instance it is much more likely that you or your OH will have some kind of illness or something that means you can't work for a period, which will potentially have a huge impact. Have you thought about planning for that? Or are all of your thoughts revolving around death? I agree with others who say that you seem to have anxiety surrounding this issue.

I think you need to talk to an IFA and sort your affairs out. Also consider seeing the doctor.

Don't mean to be cruel but if this isn't a stealth boast then I think you are being a tad neurotic, to put it mildly. The degree of financial planning you have put in place for your son already guarantees he will be more comfortably off than the vast majority of the population, never mind the half a million quid you're talking about. I also think its a little insensitive, when thousands of people in the public sector are losing their income, to be hand-wringing in public about what you must know are very enviable circumstances. Apologies if you are depressed, but I think you need to wake up a bit and join the real world.

It's not only the people in the public sector, y'know, jeckadeck

Oh how the other half live.

I think this issue runs an awful lot deeper than monetary queries. My DD will have not even a pot to piss in if I die, but I have at least appointed my sister, who loves her nearly as much (not quite, I hold that card) and would provide for her emotionally, which is far more important for me than having money. DD will see her self right with respect of bettering her future.

We all have issues and fears when it comes to leaving our children, or vice versa, but sometimes it becomes a little obessive and unhealthy

jeckadeck - if you read the thread through, you may have seen that I pointed out that I don't have that kind of money. My words were "....bulk money, say 500k....", It was an example, a scenario. I don't even have enough saved up for him.

I apologise if thats the impression you got. And to any other person who feels the same way.

As it is, I have gotten very good advice and helpful PMs so I have more clarity about what I need to do.

you pay £250 a month for 500K life insurance?? bollocks - I pay £20 for 180K

activate she may have her premiums loaded for some reason. So it needn't necessarily be bollocks. Although it seems strange that a a reputable insurance company would accept someone paying a higher premium than they were actually asking for, just because they wanted to...

I do think that she doens't have the faintest idea what she is doing with her money though and needs to talk to an IFA ASAP.

dear me, i too am a worrier and i often worry about dying as i don't feel anyone but me is good enough to look after my DD on a permanant full time basis and i am trying to look in to getting something in writing to ensure that my mum could share custody with DD should i pass away (not sure if it's possible but hoping so)

anyway... you are obsessing and to be honest if you can afford to put £850 a month away from your son you have no reason to obsess, with that amount of money he will be very well looked after. i can understand your worry about dying and leaving him, i too feel that way and it's horrible, but when it comes to money YABU.

try and chill a bit, not to worry as much (easier said than done i know) and enjoy the here and know with your precious son. the memories of his childhood will be so much more important than the money.

OP - no, our children won't have to pay any tax on the money in their accounts - all tax is accounted for. We have an excellent tax lawyer and I suggest you consult one, rather than MN, if you would like to put money aside for your DCs' future.

Agree with bonsoir get some help( I am tax professional and tbh it's not the sort of thing you would want anything other than generic advice in over the net).