Gools,
That does all seem contradictory.
Maybe this bit clears it up?
That does all seem contradictory.
Maybe this bit clears it up?
Where would you put $10k for a young child?
- Thread starter Luke
- Start date
I'd be inclined to put the money into a index tracker with the lowest fees you can find, and have any dividend payments reinvested. This is because most fund managers can't outperform the stockmarket as a whole over the long term, and they charge you a fair amount for the privilege.
If I was feeling adventurous then I'd look at a fund in the UK or EU. The weakness of the Pound and Euro should give you a decent boost when these currencies pick up in a few years time.
Alternatively, Marc Faber reckoned Japan is a good buy right now. Given that he's the most bearish of bears, that's got to be a recommendation.
If I was feeling adventurous then I'd look at a fund in the UK or EU. The weakness of the Pound and Euro should give you a decent boost when these currencies pick up in a few years time.
Alternatively, Marc Faber reckoned Japan is a good buy right now. Given that he's the most bearish of bears, that's got to be a recommendation.
Please excuse my ignorance, is AFI an example of an 'index tracker'?
I assume, at my early stage of research, that all of these would pay franking credits passed through from the dividends they receive from their investments? I guess it just means having to declare the franking credits for children each year.
Thank you,
Gools
Not sure about AFI but I always thought Vanguard Index funds were an example of an index fund with low fees.... looked into this a few years back... then still ended up putting my money with Perpetual! Graemsay has a good point that more fees does not necessarily equate to higher returns!
Graemsay has a good point that more fees does not necessarily equate to higher returns!I just wanted to add the point about how good this thread is again.
Having asked a few people, spent a bit of time Googling etc as well, it seemed like young children couldn't hold shares without tax implications to the parents.
If anyone reading this has any ideas, thoughts, knowledge, whatever, please add it here. You will be helping a really good cause!!
Gools
Having asked a few people, spent a bit of time Googling etc as well, it seemed like young children couldn't hold shares without tax implications to the parents.
If anyone reading this has any ideas, thoughts, knowledge, whatever, please add it here. You will be helping a really good cause!!
Gools
That's exactly what our accountant told us!
Our accountant told us any kids (<16 yo) shares would have to be held in trust and hence any movements would be declared on our tax returns.
Our accountant told us any kids (<16 yo) shares would have to be held in trust and hence any movements would be declared on our tax returns.
High grade Double Eagles would be a lovely gift to put away. They would have the advantage that they would not be valued daily like so many assets and are quite likely to remain "wanted and admired" for a long time.
http://cgi.ebay.com/1907-Liberty-Do...em&pt=Coins_US_Individual&hash=item3a5bfe2c2b
http://cgi.ebay.com/1907-Liberty-Do...em&pt=Coins_US_Individual&hash=item3a5bfe2c2b
I'd be inclined to set up a sub UBank account at 6.85%. While this is lower than others posted here, it does have an excellent graph that "shows" the savings and interest. It also lets you set "goals" that have graphing as well....
UBank plug over.
$10,000 would return about $11/week or there abouts at the current rate...you could tell the kids they earn roughly $1 for every $1000 in the bank per week....
UBank plug over.
$10,000 would return about $11/week or there abouts at the current rate...you could tell the kids they earn roughly $1 for every $1000 in the bank per week....
Actually they are held in a trust arrangement already anyway.
Grandma = settlor
Dad/Mum = trustee
Kids = beneficiaries
My understanding is that there's no need for a stamped deed for there to be a trust relationship/arrangement.
You could invest in into many of the suggestions already made. Invest via a super fund so at age 65 they'll be able to access the money tax free.
If you've got a 10 year timeframe consider using a bond as the investment vehicle.
If you've got a 10 year timeframe consider using a bond as the investment vehicle.
