Hey Guys.. We just had a baby. I was thinking to set aside couple of hundred dollars every month for her as an investment so that it can help her in future may be for studies etc etc.
What are the options? Is there like a fund when I can deposit like $200 monthly ?
Thank you for your response.
Part of me thinks your returns would probably be better if you instead periodically (at a much lower frequency) dropped several grand into index funds or similar (maybe once-twice a year) and then liquidated all of it when you wanted to hand everything over to your daughter when the time comes.
You could for example go through CommSec on a second account to keep things simple/separated.
I think higher education in its current form is being eroded year on year and will become less valuable for non-specialist occupations. I see industry based learning becoming more of a norm in the next 5-10 years.
You're better off investing an allocated budget than setting up a separate (smaller) fund. Compounding :)
You need a good name. Like "Krystal" or "Chardonnay"
Too ordinary. kR1st-al is better.
Children pay tax at a higher rate and at a lower threshold so it can be better to have it in one of the parents name or set up a trust.
Do you really want to be doing tax returns for your daughter for the next 15 years?
If so, do it, but keep her income under the tax free threshold…
Otherwise just make some investments in your own name that you can liquidate in the future.
We just invest in our own names, but with the accounts purpose of being future children $
https://www.vanguardinvestments.com.au/retail/ret/investment…
Vanguard High Growth Index Fund, automatically transfer $ every month.
Westpac has a scheme of this sort. Check it out. Am not over the full details so can't tell you much more