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3 key investments to secure your family’s wealth

For many investors, being able to secure their family’s wealth is one of the most important financial goals.

If this applies to you, this article will be useful in showing you what investments you can make to help achieve this.

Read on to learn three key investments which can help you secure your family’s wealth.

1. Junior ISAs

Investing in accounts for your children is important for creating a firm foundation for their financial future. One key investment account you should consider is a Junior Individual Savings Account (Junior ISA/JISA account).

These accounts work similarly to the adult ISAs you may have invested in yourself. Each year, they allow you to save money into an account for your child, which is sheltered from tax.

The amount of money you can save in a Junior ISA is according to the annual allowance. As of the tax year 2023/2024, the allowance stands at £9,000.

The JISAs can only be accessed by your child once they turn 18, and no money can be withdrawn until this time, you can only make contributions.

These accounts are great for building your child’s wealth, since you can grow their savings tax-free each year. By using up the full allowance each year, when your child is able to access the funds, they can potentially have a large sum of money to withdraw – once again, tax-free.

2. Junior GIAs

Junior General Investment Accounts (Junior GIAs) are another key investment account which can help you build wealth for your children.

As you might expect, these accounts also work similarly to the adult GIA accounts. Unlike Junior ISAs, there is no limit to the amount you can contribute to Junior GIAs every tax year.

This is beneficial, since you can contribute as much as you want to the account every tax year. These contributions can be made by anyone – parents, friends, grandparents, etc.

However, it’s important to note that Junior GIAs will require you to pay tax on dividends, capital gains, etc., so they are not as sheltered from tax as Junior ISAs.

That being said, you can utilise your child’s personal income allowance and Capital Gains Tax allowance to ensure they receive their money as tax-efficiently as possible.

3. Leaving an inheritance

The last, but equally as important method of investing for your family’s future, is to leave an inheritance.

This involves you gathering your estate and leaving it to your loved ones when you pass away. An estate can include various assets such as cash, property, investments, personal items like jewellery, and much more.

This can be a great way of ensuring your loved ones are supported financially after you pass away, and that your estate is left in a way that suits your family’s financial situation.

Leaving an inheritance may require you to pay Inheritance Tax, so we suggest you speak to a financial adviser to help you structure your estate in a way that shelters it from tax when your loved ones inherit it.

Will you be considering any of these three key investments to help build your family’s wealth for the future? Be sure to discuss these options with your modern wealth management service to ensure you take the right approach for you and your family.

Please note, the value of your investments can go down as well as up.

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