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25th August 2019
:: Blog | January 2009 (12 blogs) | Children, pensions and inheritance tax

 
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Children, pensions and inheritance tax 
 
Continuing from my comment yesterday about compound interest, an old colleague of mine Tom McPhail reveals some interesting figures in an article in What Investment out today. Discussing the merits of starting a pension for a child in the year of its birth, Tom calculates that, ‘Assuming seven per cent investment growth and 0.8 per cent annual charges, an investment of £300 per month, made into a pension plan for 18 years from birth would be worth £1,428,028 at age 60 (at a cost of £64,800).’
 
He adds, ‘Compare this with the child starting investing £300 per month at age 18, and saving for the next 42 years. The fund would be worth just £648,000, even though the cost had increased to £151,200.’
 
In anyone’s book that has to be considered as an excellent form of estate planning for those in a position to do this for their children and is on a tangent with the findings of a survey about retirees’ main concerns – inheritance tax. See:
Mike Jones, MyCompanyPension.co.uk, 13th January 2009
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 

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