Our accountant is on leave for another 2 weeks, but want to have some understanding of what is available and advantages/disadvantages exist before I visit him.
In the next couple of months I want to setup some form of investment for our children, but am unsure of what sort of investment path to take. I've done some reading here, and on some other forums, and although this forum is aligned with property to be honest it has contained some of the better information that I've been able to find online for Investing for kids....so here goes.
The kids currently have just a touch over $5K each (they are 4 and 7). ATM some of their money exists in the form of our business company/trust profit distribution and hasn't yet been drawn upon, the rest sits in Dollarmite accounts. We are currently distributing to them the MAX allowed by the ATO for minors unearned income, from memory this is between $1600 and $1700 PA. We are looking for an investment period of around 10 years, or until they are 18.
I'm not looking for advice on where to invest their money in terms of specific funds/shares or some other form of investment. I'm looking for advice on advantages/disadvanges of one investment form over another and advice on what type of structure to go for. And if possible some information or links to valuable webistes, and some tips on how to compare funds. I'm also interested to hear about what other members have done for their children.
To date, I think I've established that owning an investment in the kids' own names isn't effective, especially if we distribute from the business each year + investment returns.
I'm reluctant to have the investment in hubby's/my name because of the asset protection we need for our own business. (We do have an investment company/trust to protect our assets)
So my thought at this stage is to purchase the kids investment through the investment trust.
I'd appreciate your comments/thoughts/suggestions and advice.
Cheers
Buddybee
In the next couple of months I want to setup some form of investment for our children, but am unsure of what sort of investment path to take. I've done some reading here, and on some other forums, and although this forum is aligned with property to be honest it has contained some of the better information that I've been able to find online for Investing for kids....so here goes.
The kids currently have just a touch over $5K each (they are 4 and 7). ATM some of their money exists in the form of our business company/trust profit distribution and hasn't yet been drawn upon, the rest sits in Dollarmite accounts. We are currently distributing to them the MAX allowed by the ATO for minors unearned income, from memory this is between $1600 and $1700 PA. We are looking for an investment period of around 10 years, or until they are 18.
I'm not looking for advice on where to invest their money in terms of specific funds/shares or some other form of investment. I'm looking for advice on advantages/disadvanges of one investment form over another and advice on what type of structure to go for. And if possible some information or links to valuable webistes, and some tips on how to compare funds. I'm also interested to hear about what other members have done for their children.
To date, I think I've established that owning an investment in the kids' own names isn't effective, especially if we distribute from the business each year + investment returns.
I'm reluctant to have the investment in hubby's/my name because of the asset protection we need for our own business. (We do have an investment company/trust to protect our assets)
So my thought at this stage is to purchase the kids investment through the investment trust.
I'd appreciate your comments/thoughts/suggestions and advice.
Cheers
Buddybee
