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You, or someone important to you is:
having a baby
congratulations
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Many prospective parents plan to return
to full time work at the end of maternity leave but find this
impossible because parenthood proves to be so tiring. Financial
pressures upon the family can be eased though in a number of ways.
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You should consider switching cash deposits or other investments into the name of the parent most likely to stay at home to look after the child. Sandy organised this for her family which allowed her and her husband Dave to use their combined tax allowances to the greatest advantage.
Working tax credits are another means by which the overall tax burden can be lessened for the family. You may still be entitled to a payment from the government even if the combined family income is £64,000 per annum so do not forget to claim this particular right.
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This may also be a moment to consider changing your mortgage to an 'interest only' arrangement until both parents are back in full time work.
Even before the arrival of their baby, Sadie and Frank took Corrigans advice and changed their mortgage which resulted in a considerable reduction in their monthy payments. Over 5 years this was going to make precious little difference to the total amount of capital they would repay to the lender, but it was to be very helpful at a time when family budgets were under greatest pressure.
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Your child (or children) will be entitled to a gift of at least £250 from our government and so you should talk to Corrigans to find the most suitable fund.
Cash deposits are very safe but produce correspondingly modest returns for your child. This will be a long term investment and so the greater risks posed by stock market investments are significantly reduced.
Over 18 years your child could reasonably expect more than twice as much 'profit' from a stock market based investment than would arise from a cash deposit. It is also worthwhile mentioning to family and friends that you plan to use any cash gifts received to augment your child's trust fund as a gentle hint.
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