Investing in your family’s future: A practical approach to giving during Christmas

Christmas is a time when thoughts turn towards giving, especially to our nearest and dearest. While time together at the beach and sharing meals are cherished traditions, we also think about how we can help them meaningfully.

Investing for the younger family members

Let’s start with younger members of the family – whether that’s our children or grandchildren: set up an investment fund that you can regularly contribute to. Whether you want them to use it for their education or to buy a house in future, small contributions can make a real difference over time.

The idea is straightforward: on each Christmas and birthday, contribute a set amount of money to an investment fund focused on growth (so not just into a Term Deposit!). This fund serves as a long-term savings strategy that can accumulate over the years. Beyond the sentimental value, it also teaches the recipients about the importance of saving and investing wisely.

Financial help for family who are in the middle of their lives

For those of you who are baby-boomers and beyond, are you in a financial position to meaningfully help your children? Many of whom will be parents and with the significant financial pressures and high mortgages. You could pay their mortgage for a month. Or you could look to giving them some of their inheritance early. Providing them with a substantial sum when they’re navigating the challenges of parenthood and during periods of high mortgage stress can alleviate a significant financial burden for your children.

However, before committing to this, it’s vital to assess your own financial situation. Kathryn Alborough from Castle Trust Financial Planning says “It’s like the warning in the plane – if the oxygen masks drop, place your own mask on before helping those around you! You need to determine a suitable contribution that aligns with your own financial needs.” So start by making sure you have your own financial plan in place.

Personalised financial advice for you and your family

The team at Castle Trust can help with both setting up a low-cost, widely diversified investment fund for young children and helping the older generation check their own financial position to see if they can help the younger generation.

While the holiday season may be brief, the impact of a well-planned investment fund or early inheritance endures far beyond. It’s a way to invest in your family’s future that genuinely captures the essence of the festive season. This Christmas, consider embracing a tradition that goes beyond material gifts and instead focuses on securing your family’s tomorrow—an investment that truly embodies the spirit of the season.

Your better financial future starts here

Your better financial future starts with a conversation with one of our financial experts. We offer 30 minutes free consultations to help give you peace of mind that we can help you where you need it most.
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Phone: 03 544 1428
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