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BEN WILKINSON: Why don’t parents invest for their children?

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We all want what is best for our children. So why do so few of us take advantage of the superior tax-free gains available on the stock market with Junior Isas?

Of course, the stock market can take a beating — as we have seen so dramatically this year — but history has told us time and again that it (eventually) always comes out on top.

Our story today shows that saving the same amount into a stocks and shares Jisa versus an ordinary cash account can yield a third more.

The stock market can take a beating – like we have seen again this year — but history has told us time and time again that it (eventually) always comes out on top

The stock market can take a beating – like we have seen again this year — but history has told us time and time again that it (eventually) always comes out on top

The stock market can take a beating – like we have seen again this year — but history has told us time and time again that it (eventually) always comes out on top

While the stock market can be risky for those who need their money to hand or rely on it for income, it is much more resilient over the 18 years parents typically save for their children.

Yet it was only after working on this story that I was finally driven to open a stocks and shares Jisa for my two-year-old son.

His first account was a child savings account with Nationwide that paid a reasonable 3.5 per cent, but when that was slashed to 1 per cent this year I knew I had to move the money. 

I bought Premium Bonds, which pay prizes at a rate equivalent to 1.4 per cent and have that chance of winning £1 million every month.

But I know these interest rate rewards are inferior to what can be gained with stocks and shares.

I had previously begun the process of opening a stocks Jisa, but always abandoned it when it came to pick the funds.

None of the names meant anything to me, and I was not prepared to bet my son’s savings on any of them.

Charges are also a hurdle for parents. You are told they exist, but there’s no tangible information readily available about what they’ll really cost you.

I finally picked a provider whose fund listings gave me some idea of risk and roughly what I would be investing in.

The industry needs to make it easier for parents to take that jump into investing, or else a generation will miss out.

The rewards the stock market offers should not be reserved for those who have a good grasp of how to invest.

Many parents will never want to take any risks with their child’s savings. But interest rates are so low that money in cash accounts is being gobbled up by inflation. 

And it could be argued that leaving your child’s savings to the mercy of interest rates over 18 years is a greater risk than investing on the stock market.

But for now, I’ve spread the risk and am saving half into Premium Bonds and half into the investment Jisa. We’ll see which one comes out on top.

Free investing guides

Electric drive

Our report shows that there are hundreds of pounds to be saved if you turn your back on petrol and get behind the wheel of an electric vehicle.

Yet the real challenge is to convince motorists that now really is the time to buy one.

Many fear running out of power on a long journey, having to queue at a service station to charge their car, and then waiting longer while it recharges.

What’s clear, from the Government’s multi-million pound investment, is that electric cars are not going away and one day we will probably all be driving one.

Perhaps we need a few more incentives. If the Government did go ahead and offer a generous scrappage scheme, that might just be enough.

Britain’s car industry will certainly need the work.

Don’t pack yet!

Finally, there is some sunshine at the end of the tunnel, with news that Britons can soon go abroad for their summer holidays. But as we reveal, it won’t be plain sailing.

The biggest threat to your trip will, of course, be coronavirus, and while the pandemic is still not under control, insurers are unlikely to cover you for all eventualities.

So heed our experts’ advice before booking, and wait until travel to your chosen destination has been approved by the Government and you can get the insurance you need.

A well-earned break may well be possible, but it could still easily be snatched away until this awful virus has been defeated.

b.wilkinson@dailymail.co.uk 

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Search for elusive former boss of Wirecard intensifies

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The search for an elusive former boss of collapsed payments giant Wirecard intensified last night after it emerged his reported flight to the Philippines was faked. 

Jan Marsalek, Wirecard’s former chief operating officer, has not been seen since the firm filed for insolvency last week. 

It had been claimed he flew into the Pilipino capital Manila on June 23 and left for China the next day. 

Vanished: Jan Marsalek, Wirecard's former chief operating officer, has not been seen since the firm filed for insolvency

Vanished: Jan Marsalek, Wirecard's former chief operating officer, has not been seen since the firm filed for insolvency

Vanished: Jan Marsalek, Wirecard’s former chief operating officer, has not been seen since the firm filed for insolvency

But a probe by the country’s justice secretary, Menardo Guevarra, has now established that immigration records of his journey were bogus. 

CCTV footage was also reviewed and officials were unable to discover any trace of the executive arriving or departing. 

‘We have established that Jan Marsalek did not arrive in the Philippines on June 23 based on CCTV footage, airline manifests, and other records,’ Guevarra told the Financial Times. 

‘The investigation has now turned to the persons who made the false entries in the database, their motives, and their cohorts.’   

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Britain’s grocers gearing up for massive price war

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Britain’s grocers are gearing up for a massive price war amidst fears unemployment could rise above four million. 

More than 14,000 jobs were lost this week as a coronavirus jobs bloodbath hit the economy. 

The jobs cull has left supermarket bosses scrambling to show they are competitive on price as household budgets are squeezed due to the crisis. 

They are worried that the German discounters Aldi and Lidl will repeat the sort of market-share gains made after the 2008 financial crash. 

This week, one industry source said: ‘Price is going to be everything over the rest of the year.’ 

Food price inflation has risen to 4 per cent, running far ahead of the 0.5 per cent rate of inflation, putting yet further pressure on household budgets. 

Since the coronavirus pandemic has struck, Sainsbury’s have lowered prices on 300 products, on top of their eight-week ‘price lock’ on 1,000 of their items. 

Chief executive Simon Roberts said: ‘With rising unemployment pressure on consumer spending we’ve got to make sure our offer is really relevant. 

‘We’ve been putting a lot of emphasis on the value in our offer and invested in price. We have taken gains from discounters.’ 

Morrisons said it had cut ‘and held down’ the price of 450 customer favourites, adding in half-price promotions such as, this week, half-price beef brisket and mackerel. 

And last week Tesco, Britain’s largest supermarket, doubled down its price war expanding its ‘Aldi price match’ promise to 500 everyday items. 

Tesco chief executive Dave Lewis said: ‘I don’t see why anyone should pay more for a brand at Tesco than anywhere else.’ 

The supermarket claimed it had seen net switching gains of customers to Tesco from Aldi ‘for the first time in over a decade’. Aldi and Lidl have always claimed that, despite promotions, their products remain as much as a fifth cheaper than those offered by rivals. 

'Price lock': Sainsbury's chief executive Simon Roberts

'Price lock': Sainsbury's chief executive Simon Roberts

‘Price lock’: Sainsbury’s chief executive Simon Roberts

But the Big Four grocers have found a trump card during the pandemic in online shopping. 

They have been able to double their capacity during the lockdown gaining thousands of new customers, with many experts saying the trend of buying online will not go away soon. 

Tesco, Sainsbury’s, Asda and Morrisons are delivering to 2.8m households each week, while the discounters are close to zero. That compares to around 1.5m before the pandemic. 

Next week Chancellor Rishi Sunak will deliver his plan for rebooting the economy. 

Opposition leader Keir Starmer called it the ‘last chance to save hundreds of thousands of jobs’. 

But hundreds of thousands of jobs have already been lost during the lockdown, and this week some major companies went into administration, or shed staff, in an attempt to survive. 

There is a particular concern for the retail and the hospitality sector – that today takes its first steps out of lockdown with many pubs and bars opening – which have been starved of cash for the last 14 weeks. 

At the same time, businesses are facing up to the furlough scheme being pared back from August 1.

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Fuller’s boss urges Chancellor to cut VAT

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Fuller’s boss has urged the Chancellor to cut VAT to prevent thousands of job losses across the hospitality industry. 

As Britain’s pubs finally begin to reopen today, Simon Emeny said cutting the levy on goods and services is vital to entice punters back to their pubs and avoid wholesale redundancies.

Emeny, who said he would be heading straight into a pub as soon as they open at midday, is planning to reopen just 27 of Fuller’s 215 own-managed inns today. 

Stimulus: Simon Emeny said cutting the levy on goods and services is vital to entice punters back to their pubs and avoid wholesale redundancies

Stimulus: Simon Emeny said cutting the levy on goods and services is vital to entice punters back to their pubs and avoid wholesale redundancies

Stimulus: Simon Emeny said cutting the levy on goods and services is vital to entice punters back to their pubs and avoid wholesale redundancies

The remainder of its 177 pubs, which are run by tenants, should all be open by the end of next week. He told the Mail: ‘Pubs are an enormous employer, but clearly what none of us know is what demand will be like when we reopen. 

‘If we’re going to bring all of these employees back to work, we’re going to need the Government to bring in stimulus.’ 

He said that VAT should be temporarily lowered from its current rate of 20 per cent down to 5 per cent. 

Chancellor Rishi Sunak has come under pressure to cut VAT in his emergency summer statement on Wednesday, in which he will lay out plans to kick-start the economy. Sunak is said to have cooled on the idea, telling Tory MPs not to expect big tax cuts. But, according to the Financial Times, he will also study how England reacts to the reopening of pubs before making a final decision. If there is evidence of pent up demand then a VAT cut may be deemed unnecessary. 

Many worry that today, which has been dubbed ‘Super Saturday’, could see thousands descend on their local after weeks of being restricted to drinking at home.

Emeny is not too concerned: ‘People go to pubs to socialise with their friends and families, and I think they’ll behave well.’

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