Should I stop investing for my son?
My son is 18 months old. Should I continue to invest in his Children's Mutual stakeholder child trust fund and F&C private investment plan, which is split between Pacific Assets and Global Smaller Companies, or should I stop for now and go to a savings account?
Equity-based: Is this the best way to save for my son?
Is it a case of stay in the market and mop up cheap shares for long-term gain or take 6% interest and go back to the markets later?
No-one has a crystal ball, but what would a money man do? S.R., Leighton Buzzard, Beds
Danny Cox, Head of Financial Planning Strategy at independent financial adviser Hargreaves Lansdown, replies: The funds you have chosen are on the high end of the risk scale which means that the prices will be volatile, but over the long term you should get a better return than if you invested in less volatile equity funds. With 16 years before maturity, you should see good returns.
Savings interest at 6% seems attractive, but as we have just had an emergency interest rate cut and more are expected, the returns are falling.
The bottom line is, if you want safety go for the cash option, but the chances are that the return will be significantly lower when your son reaches age 18. Of course, there are no guarantees.
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