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Starting in April... The Child Trust Fund
The Child Trust Fund ("CTF"),
is a Government initiative starting in April, and intended to encourage
parents, and in the years to come, their children, to save for the future.
Every child in the UK born on or after 1st
September 2002 will receive a voucher from the Government worth either
£250 or £500, depending on the family's financial circumstances.
On presentation to a CTF provider, the voucher will be converted into
cash and then invested for the benefit of
the child.
The scheme starts this April and each year,
family and friends may contribute up to £1,200 to the child's CTF.
On the child's 7th birthday, the Government will make a further contribution
(as yet the amount is unknown).
When the child reaches the age of 18 years
he or she will have unrestricted access to the accumulated fund. A fully
funded CTF could be worth in excess of £25,000* at maturity!
Please contact Benjamin Gibbs from our Financial Services team on 020
8458 7427 or email ben.gibbs@glazers.co.uk
for further information.
* Assumes £1,000 contributed annually for eighteen
years, an annual growth rate of 7% and inflation of 2% per annum. The
7% rate is an illustration and actual returns will depend on the movements
in the stock market which fluctuates in value both up and down.
Calculated using investment growth
calculator at http://personal.fidelity.com/toolbox/growth/growth.shtml
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