are you asking for advice on what products to invest in, to have a baby?
well......
oysters
heaps of champagne
candles
Mariah Carey
or
some cheap porn flick
Hehehe think that ship has well sailed ! Baby is due very soon
Investment strategy for baby
- Thread starter Angel13
- Start date
Hehehe think that ship has well sailed ! Baby is due very soon
When we sat down with our financial planner his advise was to continue to invest as were and when we needed the funds for the kids at a much later date (i.e. schooling) we could either cash out or take out a loan against the equity we had created.
are you asking for advice on what products to invest in, to have a baby?
well......
oysters
heaps of champagne
candles
Mariah Carey
or
some cheap porn flick
Lol yes that ship has definitely sailed. Baby's due in 5 weeks
We have set up online accounts with automatic savings deposits for our 3 kids.
The plan is to give them an enormous head start into buying their first property when they hit 18.
Is it their dream to do this? Maybe No, and I don't care about that.
I only care about my responsibility as a parent to try and create a great opportunity in their life for them - opportunities I never had..
Their dream may be to sail around the world, or play in a Thrash Band, and that's fine.
At least they'll have the rent from the IP to help them in whatever they decide to do, or they can live in it themselves, or sell it later on.
Much more fun tho follow the dream with a little bit of financial security under the belt I reckon.
Add a grain to a grain and a scoop will form!
I have 5 high bearing accounts set up (2 for our kids and 3 for - my niece and nephews - since their parents are such poor savers, non-investors too!).
I needed to set up accounts under our names as I wanted to have control instead of them or their parents.
The amounts are automatically deducted once per week and any additional or occasional gift money from family or friends is deposited there too (you would be amazed what difference that makes!). These are small amounts, say a coffee a day type of amounts deposited automatically and weekly! They are increased yearly for CPI, so small increments too.
Once a certain amount is reached I invest into various things:
1. Direct shares (but you need to know what you are doing there, have stop loss strategy - exit strategy there!)
2. Gold/silver (can be coins, grams, an ounce - anything bought under $5K does not need to be reported anywhere, however it is after tax money). I like to use dollar cost averaging method, like for shares (so I like to buy 1 or 2 ounces of gold per year as gold tens to fluctuate between 0.5 to 2 times the weekly male earnings - so 0.5 would represent undervalue, 1 is on par, anything above is overvalued - this is just my idea and the strategy I use).
Once our kids are certain age they understand that's where their pocket money goes to as well (Had few protests when younger but the older they are, they don't mind as much).
In addition, I like to buy them yearly gifts (whether for birthday, Christmas, special celebrations etc...). We collect yearly stamp albums, or certain collectable coins, or prints, or gifts of some value.
Because of this one of my son's hobby is now collecting things (stamps, coins, yugioh cards, other currencies, etc....).
I must admit when starting out I didn't realize how much they could accumulate but now all their combined holdings are over 6 digits.
Recently, I felt humbled and privileged at the same time, when I could give my niece some of her saved money towards her imported/made European cello (an agreement there, that if sold proceeds are to be given back to her).
I think your idea is so wonderful and I am so surprised that many parents/grandparents aren't doing it too!
I do not have guarantees of how they will manage their holdings, but at least I will have the satisfaction that I tried to do something for them early on. I sometimes imagine how wonderful it would be if all the future generations took their own control, just saved 10% of their earnings and past that on, perhaps we would never face another GFC then?
In addition if I need to manage cash-flow for my business/investments I tend to borrow from them and then pay them the interest (slightly higher than I would pay the banks - think about it, it doesn't really matter where the funds are pooled from, right?).
We have saying in our family in our language so no exact translation, but it's something like, " add a grain to a grain and a scoop will form", perhaps this is similar to, "A penny saved is a penny earned".
So good luck in creating the scoop from grains for your loved ones!
I have 5 high bearing accounts set up (2 for our kids and 3 for - my niece and nephews - since their parents are such poor savers, non-investors too!).
I needed to set up accounts under our names as I wanted to have control instead of them or their parents.
The amounts are automatically deducted once per week and any additional or occasional gift money from family or friends is deposited there too (you would be amazed what difference that makes!). These are small amounts, say a coffee a day type of amounts deposited automatically and weekly! They are increased yearly for CPI, so small increments too.
Once a certain amount is reached I invest into various things:
1. Direct shares (but you need to know what you are doing there, have stop loss strategy - exit strategy there!)
2. Gold/silver (can be coins, grams, an ounce - anything bought under $5K does not need to be reported anywhere, however it is after tax money). I like to use dollar cost averaging method, like for shares (so I like to buy 1 or 2 ounces of gold per year as gold tens to fluctuate between 0.5 to 2 times the weekly male earnings - so 0.5 would represent undervalue, 1 is on par, anything above is overvalued - this is just my idea and the strategy I use).
Once our kids are certain age they understand that's where their pocket money goes to as well (Had few protests when younger but the older they are, they don't mind as much).
In addition, I like to buy them yearly gifts (whether for birthday, Christmas, special celebrations etc...). We collect yearly stamp albums, or certain collectable coins, or prints, or gifts of some value.
Because of this one of my son's hobby is now collecting things (stamps, coins, yugioh cards, other currencies, etc....).
I must admit when starting out I didn't realize how much they could accumulate but now all their combined holdings are over 6 digits.
Recently, I felt humbled and privileged at the same time, when I could give my niece some of her saved money towards her imported/made European cello (an agreement there, that if sold proceeds are to be given back to her).
I think your idea is so wonderful and I am so surprised that many parents/grandparents aren't doing it too!
I do not have guarantees of how they will manage their holdings, but at least I will have the satisfaction that I tried to do something for them early on. I sometimes imagine how wonderful it would be if all the future generations took their own control, just saved 10% of their earnings and past that on, perhaps we would never face another GFC then?
In addition if I need to manage cash-flow for my business/investments I tend to borrow from them and then pay them the interest (slightly higher than I would pay the banks - think about it, it doesn't really matter where the funds are pooled from, right?).
We have saying in our family in our language so no exact translation, but it's something like, " add a grain to a grain and a scoop will form", perhaps this is similar to, "A penny saved is a penny earned".
So good luck in creating the scoop from grains for your loved ones!
haha sounds pretty typical!
We hope to gift our kids a bit of a financial start also but in there early 20's, after they have gone through their crazy stage and settled a little bit. Doesn't hurt to do it tough for a few years after leaving home.
this is still a long way off though
Completely agree with this statement.
I don't see the purpose of creating an "investment" for your children so that you can give it to them when they reach x age.
The investment properties I have now and ones I may purchase in the future are what I intend to leave behind for them. I just want them to understand the value of money and I feel that giving them a lump sum at a particular age is counter intuitive.
Money will be provided to them when they reach the stage in which they can prove they are capable of making intelligent decisions.... and to do that I need to put myself in a better financial position now.
Last thing i want is for the children to think the bank of mum and dad are open 24/7 and will give out money (yes I have met a fair amount of people that have that attitude)
We have started our own 'education' fund for our 2 kids. Plan is to build it to a level where the dividends alone will pay for private education (HS) and later Uni fees. Capital can then later be used to help them into a house.
Auto deduction from my pay, and purchases direct shares. Managed fund fees are too high IMO. I use Buffett / Montgomery theories / rules in stock selection.
Its all in my wife's name, as she has been off work for an extended period and has not earned income for 8 years - had a great time raising the kids!
Claim all the imputation credits back (which can be a sizeable boost once the portfolio grows) and reinvest all dividends.
Auto deduction from my pay, and purchases direct shares. Managed fund fees are too high IMO. I use Buffett / Montgomery theories / rules in stock selection.
Its all in my wife's name, as she has been off work for an extended period and has not earned income for 8 years - had a great time raising the kids!
Claim all the imputation credits back (which can be a sizeable boost once the portfolio grows) and reinvest all dividends.
