INVESTING FOR THOSE YOU LOVE
Adam Jarvis , senior investment manager and head of RBC Brewin Dolphin ’ s Winchester office , explains why it ’ s never too early to start .
FINANCE
Soaring house prices over the last decade mean getting a foot onto the property ladder has become increasingly difficult for new buyers – especially at the start of their working lives . It makes investing wisely to help children and grandchildren when they need to fly the nest even more important .
Adam Jarvis from RBC Brewin Dolphin ’ s Winchester office explains : “ The average UK house price stood at £ 294,329 in December 2022 - 74 per cent higher than ten years previously . Without a substantial deposit , it ’ s often difficult for younger buyers to get a mortgage .”
Surely though , a generous gift from a family member at the right time can help ? “ Not without understanding the potential tax liabilities ,” says Adam . “ There are complex rules around how gifts are taxed . If you don ’ t plan ahead , you could end up leaving your children or grandchildren with a big tax bill rather than a financial boost .
“ By starting to save early , it ’ s possible to mitigate some of the taxation risks of making large financial gifts to family members . A simple and tax-efficient way to save money for children is to invest through a Junior ISA , where you can give up to £ 9,000 a year from the day a child is born . If you begin early , your child or grandchild could have a substantial sum of money by the time they turn 18 .
“ Whilst cash interest rates have improved dramatically over recent months , inflation remains around double the best cash rates currently on offer and interest rates are expected to fall over coming years ,” he adds .
“ This means that , over time , the value of cash savings could decline in real terms . Investing in the stock market – whether that ’ s via an ISA or a trust fund - offers the potential for greater long-term growth , helping your money to work harder for you . History shows that over periods of ten or more years stock market related savings perform more strongly than cash savings and grow above the rate of inflation .
Getting the advice of a financial advisor when making decisions about investments of any sort is vital . “ RBC Brewin Dolphin is one of the largest wealth management firms in the UK with an office right in the heart of Winchester ,” says Adam . “ We offer one-to-one bespoke advice and our clients have a dedicated advisor who they can call directly .
“ Whether our clients need help managing investments , planning for retirement or supporting the next generation , we can help them make informed choices not only about their futures but the futures of those they love .”
01962 798000 www . brewin . co . uk / winchester
Disclaimer :
The value of investments , and any income from them , can fall and you may get back less than you invested . Forecasts are not a reliable indicator of future performance .
www . winchestermag . com 55