This story is the reason why I don't want to do any Trust Fund again in my future because I had planned to do it.
An 18 year old boy named Max Prince living in the UK found out that his Child Trust Fund which was worth £250 is now worth only £12.39
The government originally put in £250 when the boy was born and look how low it has gotten. This trust fund is supposed to help young adults save money over time but it lost most of its value because they need to pay a yearly fee of £30. This money is charged by Columbia Threadneedle which is the company managing it the funds. How can you charge more than 10 percent
The worst part was that, all that while Max’s family didn’t know about these fees because letters from the company went to their old address after they moved.
That's why by the time the boy's funds matured, nearly all the money had gone to fees. Max and his parents were shocked and upset, who wouldn't be if you noticed all your savings gone like that.
Like I mentioned, Max was 18 so the parents were hoping to use the funds they thought was a lot to help him in his adulthood. If this happened to Max, then probably any kid with that kind of trusts savings has been affected.
The experts are now encouraging families in similar situations to contact the Financial Ombudsman Service for some help. I really planned on putting some money in trust for my kids in the future but I think I'll stick to crypto wallets, maybe one day they'll thank their future Dad for investing in Bitcoin on their behalf 😁
