With university beckoning, the 17-year-old is fortunate enough to have the support of his grandparents for tuition fees. His parents, meanwhile, have promised him a lump sum to invest in a property to live in during the duration of his studies as part of a bare trust fund they have set up for him. He is already planning ahead to renting out spare rooms to cover the cost of the mortgage.
The Trust gives Jack peace of mind that unlike many of his fellow students he won’t be emerging from higher education with substantial student debt. Nonetheless he wants to make the most of the money that he will have access to from the age of 18. In the meantime, Jack is already in the habit of putting money to one side into a savings account – a combination of gifts from generous family members and the proceeds of afterschool and holiday jobs.
He already has his sights set on a career in the City and makes no secret of the fact that his ambition is to make money, although he’s nervous about job prospects in the sector.
Pensions aren’t yet on his agenda. He’s more drawn to the idea of investing in stocks and shares as a means to securing a higher return on his investment rather than relying on the pitiful interest rates being offered by the banks’ savings accounts. Are there any investment products or strategies that he should be considering which are appropriate for his age group?