Investing with Children

The only downside (besides the rule of never doing joint ventures and never working with children and animals) is that by doing it together you may prevent them getting FHOG and stamp duty discounts

I will think about it when mine are older but so far I'm transparent with DS15 about how/what/why/when
 
westminster said:
I will think about it when mine are older but so far I'm transparent with DS15 about how/what/why/when
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My stepdad used to talk about investing occasionally from when I was about 16 or so. At the time, I thought it went in one ear and out the other, but I remember having my 'lightbulb moment' one time at work when I thought 'I don't want to do this for the next 40 years' and zing!
 
We helped our daughter ( oldest of three ) get a start with her deposit . Didn't have enough but she is in the process of paying that back . Our parents did the same with us .

We also spent time going around looking at places with her , discussing pro's and cons etc

Cliff
 
My 15 yr old is wanting to invest in property. I've been telling her to be a kid and don't worry about it too much yet. I was twenty when I bought my first property and I think that was a pretty good age to start. I didn't get FHB grant. If I was a bit smarter I should have divorced my hubby so he could have gotten $21,000 FHB grant, or get him to purchase before we got married- when did the govt start giving out all this money?? I think it was in a property downturn in late 90's.
 
+ My parents helped by cleaning, painting and making curtains. The property got valued at 20% higher (bank valuation) a year later. They also went guarantor for me until I got it revalued. I would do a similar thing for my kids if they save a small deposit.
 
Mine are much younger but we already have an education fund aside which is preventing me from investing too heavily at present. Mind you I have 3 kids and all will require a private high school education.

Once the new mortgage has had its break in period, I'll be leveraging what I can.
 
Mine's only 6 but half of any money he gets from any source (including birthday money) goes into a "do not touch" money box. This will eventually make it to the bank and when the balance is high enough - into investing.

Whatever he accumulates, we will match and use it to fund a deposit on a house. The details of whose name and structures and such have not yet been worked out but we'll seek advice prior. He will then have to manage it himself, and hopefully this will give him the leg up and impetus to do more.
 
MTR said:
Very funny:)

Italians they are a bloody close lot, however the last generation broke the mould and started marrying skips, all welcome now:p

MTR:)
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The traditional Italian family values are very much admired, close knit.
Similar to traditional Chinese value in many ways

In business world, Italians always look after each other in business when they can, my old boss was Italian, and he really look after me as one of his own, til this day I have not forgotten.
Whereas the business world of Chinese, it's all about the money

And Yes MTR, adopt me too if you want, lol
 
Hi LW
No adoptions at this point in time;)

Better still, if you are in a position to help down the track do it for your own children, teach them what you know....win/win:)
 
Structure

Anyone got any idea on how I would structure when purchasing with children.

I would think a good way to go is just set up another Trust, where children are beneficiaries and I am a Director?? I would always want control.

MTR:)
 
unless the objectives are clear - investing with partners even family members can be difficult

I know of trust whereby 2 family members are in, one puts a claim to as trustee of 15K other puts in 25K for expenses, time spend and both spend more time arguing over a breakdown etc rather than focusing on the end goal which is to generate a gain
 
MTR said:
Anyone got any idea on how I would structure when purchasing with children.

I would think a good way to go is just set up another Trust, where children are beneficiaries and I am a Director?? I would always want control.

MTR:)
Click to expand...

If you want control then it might not be the learning experience at all :)

It's a fine line between helping, controlling and handing everything on a silver platter. I don't know how I'm going to do it but I need to ensure that kids learn all the life lessons they need to.

I absolutely don't have the answer to this but at this stage my thinking is
- do something on behalf of kids but not tell them until they are over 30
- help them with a deposit for their first IP or PPOR - probably a dollar for dollar thing.
- encourage them to propose a deal to me that they would like to do - they must have skin in the game and I will help.

I believe those people that tie up their money/Estates until the kids are 30 plus are on the right track (except for Gina Rinehart !). How will my kids learn to manage money if it's given to them?
 
Yes, good points.

This is just my view, I have 17 yo and 23 yo, they already are smart when it comes to money and they both study and have part-time jobs, have good work ethics

At the end of the day, if my children think they are going to get a free ride well it just aint gonna happen, I expect my children to pull their weight with whatever we do.

This is more about helping my children because I can and because they don't have the funds, so with my support they can learn and get ahead at a young age.


MTR:)
 
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