Long term savings plan for children

T

thedaddyman

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I am looking at setting up a long term savings/investment plan for my kids education/future. 2 kids, aged 4/8. Currently have around €30k put away for them in a mixture of savings accounts and credit union accounts but am looking to set up some sort of monthly savings plan that will provide greater growth then deposit interest.
  • Not planning on investing any of the €30k put away already, that is their safety blanket
  • Looking for something where I can invest monthly, starting off at around €100 per month but that monthly amount hopefully will grow
  • Not looking for anything overly risky, no forestry schemes please!
  • I obviously want to minimize any fees or tax implications
  • I would like the option at some stage of adding a lump sum to the investment as I expect there will be some inheiritances
I have looked at the like of Rabo and Zurich life but just wondering does anyone have any advice as to the best options?
 
I currently use the Rabbo platform with an account in the childs name. Remember children have an annual tax free amount like all other irish residents which means you can realise profits every year up to that ceiling with out income tax liability arrising on those profits. I'm also currently researching for a cheap invetsment platform to trade in ETF's.
 
The funds on the Rabo platform are not subject to income tax/CGT - they are subject to 41% exit tax, with deemed disposals every eight years.
 
And Rabo do not deduct this 41% exit tax for you, you must DIY, as per their website. They deduct .75% entry and exit fees, which are not the same as exit tax.
 
The contracts for the unit linked regular savers accounts are fairly poor. I was use Zurich for my clients.
Steven
http://www.bluewaterfp.ie (www.bluewaterfp.ie)
 
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