A word from the office - June edition

As we hopefully welcome some drier, warmer weather in Gloucester this June, thoughts naturally turn to the upcoming summer holidays and the six-week school break. Whilst planning activities to keep the kids entertained, it’s also important to consider the broader financial implications of our children’s future. How will we fund university education? How can we help our children get on the property ladder? Additionally, contemplating the later stages of life prompts questions on how to ensure a smoother transition for our children when inheriting our estate.

Monthly Headline from Quayside

The younger generation are facing new and difficult financial challenges as they grow up in the modern world. These include having to pay for university and tuition fees, funding a deposit on a first house, and the realities of having to work longer and make provisions for an income in retirement. Starting to save money now could make all the difference in the long term. 

How can Quayside Help? - Speaking to a financial adviser when planning for your child's future can be immensely beneficial, they possess expertise in navigating the complex landscape of investment options and savings plans, allowing them to tailor strategies to your specific needs and goals. They can help you optimise your savings and investments to maximise returns while minimising risks, ensuring that you're on track to meet your child's future financial needs, whether it's for education or other expenses. Additionally, they provide valuable insights and guidance on tax-efficient strategies and long-term wealth management, empowering you to make informed decisions that can secure a brighter future for your child. By seeking the knowledge and experience of a financial adviser, you can gain peace of mind knowing that you're taking proactive steps to provide for your child's financial well-being and future success.

Here are five ways a financial adviser can assist in planning for your children's future:

1.    Junior ISA and Trust Fund Guidance: Financial advisers can provide advice on setting up and managing Junior Individual Savings Accounts (Junior ISAs) and Trust Funds for your children. They can help you understand the tax benefits, investment options, and contribution limits associated with these accounts, ensuring you make informed decisions to maximise your children's savings.

2.    Education Planning: Financial advisers can help you create a comprehensive education savings plan tailored to your children's academic goals. They can assess the projected costs of tuition, accommodation, and other expenses associated with higher education and recommend suitable savings vehicles.

3.    Investment Strategy: With expertise in investment management, financial advisers can design an investment strategy aligned with your risk tolerance, time horizon, and financial objectives for your children's future.

4.    Tax-Efficient Planning: Financial advisers can devise tax-efficient strategies to minimise the tax burden on your children's investments and savings. They can recommend tax-advantaged accounts like Junior ISAs or pensions, utilise tax-efficient investment vehicles, and implement income splitting techniques to optimise tax efficiency and preserve more wealth for your children's future.

5.    Estate Planning: Planning for the transfer of wealth to your children requires careful estate planning to ensure assets are distributed according to your wishes and tax-efficiently. Financial advisers can assist in drafting wills, establishing trusts, and implementing other estate planning strategies to protect and preserve your wealth for the benefit of your children, minimising inheritance tax liabilities and providing for their financial security.

The value of an investment with St. James's Place will be directly linked to the performance of the funds selected and may fall as well as rise. You may get back less than the amount invested.

The levels and bases of taxation and reliefs from taxation can change at any time and are generally dependent on individual circumstances.

Top Tip from Liam

There is a lot you can do for your kids when it comes to money, whether it’s to pay for education, to buy their first car, to get them onto the property ladder, or however else you wish to support them. 

However, for me the most important thing is teaching them about money and encouraging good financial habits – research shows that kids have already established many of their money habits by the age of 7!¹

-    Talk about money. In Britan talking about money is often seen as taboo. I disagree. Involving your kids in conversations about budgeting, investing and so on is a great way to help them understand money. 

-    Use money. Whether it’s as simple as paying at the checkout or as advanced as using apps such as Go Henry, it will help to prepare them for the real world. 

-    Spend, invest and do good. My eldest is 4 and we’ve just introduced the idea of pocket money. We are encouraging him to spend some, invest some (offering a little extra for money he chooses to put in his savings jar), and to use some for doing good. So far he’s spent it all, but the cogs are turning, particularly at the thought of extra money. 

-    Save to buy. When they ask for some cheap rubbish that’s been strategically placed near the checkout, encourage them to save their pocket money to buy it. Easier said than done, I know. 

-    Financial planning. When they’re old enough to understand but young enough to listen to what you say (sometimes), bring them along to a financial planning meeting. What better way to understand money? 

Last Month’s Headline

The new Tax Year - Starting a new tax year can be an opportunity to get your finances in order and getting financial advice for the new tax year can be beneficial for several reasons. Read more here.

Further Insights

If you’re interested to read further, we also have more useful information on our website which can be found here.

Contact your Adviser

If you’d like to discuss more about this month’s topic, please book a call with your adviser here. 

Alex’s Diary

Amelia’s Diary

Liam’s Diary

Piers’s Diary

Steve’s Diary

¹https://www.justfinancefoundation.org.uk/lifesavers-stories/2023/8/2/what-do-kids-know-about-money - What Do Kids Know About Money? The Just Finance Foundation - August 2023

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