Paul has already been saving and investing for quite some time. He now feels the time is right for him to set up another investment, which he can use for his son’s future. Paul’s son Charlie is very young so he has time to build up some money for when Charlie is older and Paul can choose how to use the money.
Paul wants to give Charlie the best start in his life and is thinking about possibly paying for Charlie’s university fees or maybe helping him to get his foot on the property ladder.
Paul already has some investments and he knows that the returns he could get are affected by how his investment performs. He recognises that the value of his investment could go down as well as up, however he is prepared to take some risk.
Paul is aware of the tax efficiencies when you save or invest in an ISA and that this favourable tax treatment could change in the future. He also knows that each tax year there are limits to how much he can pay in.
Paul is now considering starting to invest for Charlie’s future by making regular monthly contributions that he plans to keep separate from his other investments.
If he needs to he knows he can change or stop his monthly payments at any point.
Paul is an illustrative character designed to highlight why and how people approach investing. His financial situation, objective, knowledge and approach are fictional and you should always consider your own before investing.