We’d excited to introduce you to My Baba’s new resident expert, Miss Lolly. Miss Lolly is a financial adviser at a wealth management firm in the City of London. A Chartered Independent Financial Adviser and Fellow of the Personal Finance Society (PFS), Miss Lolly is one very smart cookie – this being the highest qualification a financial adviser can hold. Miss Lolly is also a member of MENSA – the high IQ Society with an IQ of 148, so we think you’ll soon agree, when it comes to finance – she really knows her stuff.
Miss Lolly lives in south west London with her husband and their two children. This is the first in Miss Lolly’s new monthly series of blogs for My Baba.
My job immerses me in the world of the wealthiest individuals in society and I am conscious of this when I start to think about my finances. It would be very easy to get stressed about my lack of millions in the bank.
Only this week have I talked to clients about funding six figure house deposits for their children and many often gift their offspring a property outright when they feel that the time is right.
As a mother of two, I do worry about my children’s ability to get on the property ladder and it seems that I am not alone. The ONS published some thought provoking figures showing that house prices are seven times earnings. Given that lenders are likely to lend 4 or 5 times your salary; this means you need a HUGE deposit to fill the gap.
Halifax recently found that 25% of 18-34 year olds are relying on an inheritance to get on the property ladder. With increasing care costs, I feel there could be a lot of disappointed 18-34 year olds out there.
So what should you be thinking about as a parent?
- You can only do what you can! The amount that you can put by will be determined by your disposable income. Make sure you have built in your personal saving and retirement planning when working out your true disposable income. Its important to put your own finances first.
- Family mortgages are the response of the banking industry to parent’s concern. They help parents to help their children get on the ladder often by securing a loan on the parents’ home.
- I prefer to put money aside in my name (especially whilst the sums aren’t huge). This allows me to have control of when and how my children would get access to anything that is earmarked for them.
- Consider investing the money rather than keeping it in cash if you are investing for 5/10 years or more. Currently cash savings rates are not beating inflation.
Good luck with your saving!!
Lots of Love
Miss Lolly xx
Smart Financial Advice for Women
Whether you need help with mortgages, investing, saving for a rainy day, or just tackling your financial fears, Miss Lolly will give you unbiased advice based on the very latest financial wisdom. No jargon, no lectures – just the vital stuff you need to know, in user-friendly language. Get in touch via her website.