Hello Everyone, I thought I'd share a little secret with you about making your kids rich. If like me you've got children coming out of school now (or in the next few years) then you might just be interested in this. Inflation has averaged 5.6% per annum since 1949 and so getting a measly 1% on your savings isn't going to cut the mustard! You could try gilts at 7.4% or UK Core stocks and shares at 12.1% per annum average since 1956, but the real action is in UK Value Stocks which have delivered a whopping 16% per annum average over the same period of time.
This means if you start a pension plan for your kids now (which they can carry on with later) then £100 per month could give them over £1,000,000 before they reach the age of 50....by 60 they'll have over £4,750,000 which is staggering! You can do the maths yourself in Excel but I've already done it for you. You just need to know how to access Value Stocks at the lowest possible charges.
If £100 per month was all public sector workers had to pay into their pension funds then the news wouldn't be full of proposed strike action!
No comments:
Post a Comment