Where to Invest Kids Money

LEspressoDan on 15/09/2017 - 19:14
Last edited 16/09/2017 - 09:07 by 1 other user

Hi,

I have around $3500 in childrens savings accounts for each of my kids.

Tax is paid on it, it's 'theirs'.

I would like to do something with it though to try to grow it a little bit and mean that they don't get clobbered by any tax when they take it out while also not giving me any difficulty with tax (I just want an easy life and don't want to be needing to explain any funny arrangements to the tax man).

There are three requirements:

1. Need the kids to be able to access it any time after they are 18.
2. Once it's setup, I would like to be able to add money any time in to any amount (within limits, I'm not a millionaire) without changing baseline financial arrangements (don't mind too much if this is through buying units or adding to an account, it just needs to be consistent)

3. The money should be the children's

   The aim is to be able to end up with something that can grow to somewhere around 20-30,000 by the time the kids are in their mid 20's (they're 9 and 12 now) with regular additions.

   Alternatively, if I am disciplined, is there some mechanism that I can save that's not Super which would allow me to gift the money to the kids at a later date without too many penalties?

Dan

• 

  fruit on 15/09/2017 - 19:18

  +3

  Bitcoin! It's at bargain prices atm. BUY BUY BUY!

  • 

    Slippery Fish on 15/09/2017 - 19:22

    I wouldn't risk my kids money on Bitcoin, especially as a long term investment…

    • 

      fruit on 15/09/2017 - 19:24

      +6

      Try dogecoin then.

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  serpserpserp on 15/09/2017 - 19:44

  +4

  Well you are about 73k off being able to buy a sports car, they are a good investment I hear.

  Keep heading towards that goal I reckon. Maybe get a second job at Westpac to help get you there.

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  AdosHouse on 15/09/2017 - 20:25

  Invest in the housing market. Either it keeps growing and the investment amount grows, or housing crashes in the future and they can buy a house cheaper. Win/Win, LOL.

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  fertiliser on 16/09/2017 - 00:33

  what's wrong with the savings accounts exactly?
  and why are they being taxed?

  suncorp and bankwest have reasonable interest rates for kids savings accounts. The bankwest one is a little more complex (250/month max deposit) but it has a very attractive rate.

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  [Deactivated] on 16/09/2017 - 11:49

  3.5k in literally any bluechip dividend stock. Returns are at least triple bank interest rate.

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  craigd on 16/09/2017 - 17:26

  there are plenty of managed funds around that specialise in kids investments. Look for one of these, you will probably have to put in a regular monthly deposit though. I have one through Colonial and put in $100 a month for each kid