Are you financially secure?

You can take charge of your family's financial future!

Wouldn’t it be amazing if you you could actually start securing your children’s financial future and maybe even your own right now? Well that’s what I’m doing and I’m passionate about sharing my theories with as many people as possible because I believe anyone can do it and everyone should do it?

By way of introduction:

Even with many starting advantages life can still trip you up. All is not lost, even when life works against you, or perhaps more commonly, when you inadvertently work against life, you can still achieve financial security.

The power to do this is entirely in your hands. It doesn’t even cost a lot of money to do, in fact it’s so cost effective to do that you will most likely be able to help your direct family and other loved ones to do it too! Wouldn’t that be a legacy worth considering!

But the main intention of this plan is to build a financially stable and comfortable future for your children and in turn their future children.

Easy as it is, the whole plan hinges (at least initially) on one person in a generation to step up and make it happen. A parent, an Aunt, Uncle or Grandparent. One person to read some simple instructions and follow them patiently and consistently. Hopefully that’s you! Hopefully that’s why you are here!

This of course is why I’ve called the plan The Generation Pension Plan

This website is NOT FINANCIAL ADVICE! Informational purposes only.

Disclaimer:At this point let me clarify that I am not a financial advisor. Nothing I say should be construed as anything other than my personal opinion and it’s entirely up to you if you take any actions as a result of reading this. No stock or action I mention should be taken as a specific recommendation only as an example. Do your own research and make your own decisions based on the information you discover here and elsewhere. If you invest your money it is at risk of going up or down, if you do not invest your money it can only be devalued by inflation and as a certainty can never go up!

(By the way I am writing everything from a UK citizen perspective. Most countries have similar investment accounts and tax rules but you will have to check them.) All understood? Good please feel free to read on.

Are you ready to change your family's future?

A £1million+ pension for less than £500….is that possible?

If you knew that by putting away £100 in the year of a child’s birth and £100 for each of the following 2 years you could quite likely grow your child a pension in the region of £1million you would do it wouldn’t you? (A few charges and fees will get you up to approx £500 total cost.)

I believe that however hard up you are as a young parent, uncle, aunt or grandparent you would find that £500 over 3 years.

Of course you don’t believe at this point that you could make a £500 investment and get a £1million+ pension pot in return. So before I tell you how I believe it can be done and why it’s not common knowledge let me first give you some important information.

Let’s start with this fact:

The cost of not investing at an early stage for a child’s future is not a failure you can usually make up for later however good your intentions.

Also if you follow my plan and it fails at the very least you would have something saved and it would make an excellent addition to whatever pension your child ends up with so everything to gain and nothing to lose.

I’m going to assume we agree so far and press on but before I do let me warn you about a few things. Things that let me assure you, you have been brainwashed into ignoring on the basis that they are too boring, too complex or just too confusing to pay attention to. Some of the cleverest people I know are afraid of even discussing these things! So it’s no surprise that it took me 37 years to piece it all together.

You can get all the info in about 37 mins so I hope you will grit your teeth and if you find yourself wavering just remember the largest, wealthiest industry in the world is relying on you giving up and going back to your news feed, social media or streaming TV. I assure you they do not want you to wake up and change your family’s future.

I am going to discuss some simple maths i.e. 15% per year for a lot of years = a lot of money at the end. I was no genius at maths at school either so trust me you don’t need to be to get your head around my thinking here.

I am going to discuss a couple of very common types of investment account. Luckily super easy to setup nowadays as we have apps on our phones.

I am going to discuss buying and selling stocks and shares. Shock horror! Yes I know most normal folk are immediately terrified at the idea of this but it’s so simple these days I would suggest it’s easier than placing an online shopping order so just keep calm and carry on. Your child’s future financial welfare depends on you taking on board new ideas and following simple guides.

I am going to mention some complexities like tax and tax relief but only briefly as they are unique to each individual and you can look for more info on such matters elsewhere from more qualified resources, plus they often change

The Generation Pension Plan in 6 Easy Steps...

Right let’s get down to the nitty gritty. Here is the 6 step plan. There are links in the plan to explain my thinking in greater detail without making the actual plan super long winded and tedious. (As indicated my plan assumes you will pay any account charges, share dealing fees or stamp duty for the first 5 years or so. None of these cost are huge but they would make a difference to the amounts accumulated as we are starting with the smallest possible investment sum.).

Our objective: Build up an approx £1million pension for a lucky child.

Step 1:

Open a SIPP and load it with £100, the government will chuck in another £20 (You can add more if you have it.) (See SIPP vs ISA info.)

Step 2:

Choose some shares to invest in that fit the key criteria. Better to pay some extra dealing charges and have 3-4 different shares in my view. See share picking guide.

Step 3:

Setup the same portfolio in yahoo finance on your mobile device if you didn’t when picking them so you can check them from time to time. See share selling guide.

Step 4:

Wait one year and check your performance, did you make your target 15%? If you didn’t or if by some chance your stocks went down, don’t panic. Consider topping up the pot to the target amount if you can afford to. See investing extra money.

Step 5:

Add another £100. The government will add another £20, buy more shares, update your yahoo finance portfolio. Monitor and wait another year.

Step 6:

Repeat monitor and adjust shareholding’s occasionally for the next 16 years until you can hand the account control to your child and teach them the ways of the simple stock investor.

Investment growth scenarios

So you’ve heard how to do it, now take a look at some numbers. Read more

SIPPS vs ISAs

You cannot take your money out of a SIPP nor can a mad in the head 18-25 year old that ones a carlosfandango car against all good advice 🙂

ISAs are a blessing to those with patience and financial foresight since everything you grow inside an ISA will not be taxed and can be withdrawn at anytime although you diminish the growth if you tap into the goodies early on! So do a SIPP and do an ISA if you have extra cash since the SIPP has a maximum growth ceiling and gets taxed heavily beyond it although there are scenarios where you can reduce the tax burden.

Anyway let your lucky offspring or relative worry about the tax when they get that point in time…its a good problem to have. Read more

Links and Resources

Various providers of financial info and services that I have found to be relevant. Read more

Credit where credit is due

You may have died by the time your child gets their pension so be sure to remind them about it every year during their adult life.

'Til the big D do us part...

This pension plan is likely safe from a divorce split since it will be setup pre-marriage and not added to during the marriage. A simple prenuptial letter of agreement confirming that it is not included in marriage assets would make this doubly secure.

Playing Catchup?

Having sorted out the little people in your life its entirely reasonable to think you may be slightly jealous of their future wealth and wish to close the gap a bit. Particularly if like a very large percentage of the population the nefarious arrangements cooked up by the financial industry to date have not apparently served you well. There are ways to do this but it takes a bit of a change in outlook and some belief in the system. Read more