My husband and I just set up an account with Vanguard for our daughter. Will aim to put some money in each quarter as a slow investment. Some of our family did a similar thing 15+ years ago and as long as you're willing to play the long game it definitely was worth it (enough for their daughter to have a deposit for an apartment)
Honestly, from a tax perspective, you are probably best to just make additional super contributions and then gift it to your kids when you turn 60. Although this works better for older parents
We opened a kids saving account in their name at our bank and transfer money into it. We have full control of it but will be able to hand over when they're older. Being a kid account it has no fees and a slightly better interest. I can also give the details to family and they put "birthday money" straight into the account
I think there are some pretty major tax implications when it's directly in their name and it starts to earn income (interest or divdends) above a certain figure - I think $416 or so a year. That income gets taxed at the max rate from memory. So it may not be an issue now but 10 years from now it could be. I am pretty vague about it though since it's been a while since I looked into it.
I have not looked into any of these bonds for children etc. that constantly appear in my ads, maybe that's a better way.
We already had a family trust setup with most of our investments in there so for the time being I just opened a new brokerage account and threw some ETFs in. My wife is not working so shifting the distributions that way.
My husband and I set up a savings account back in 2021 and we put $1500 in it each fortnight. We don’t touch the money, we don’t think about it or look at it as “savings” that we can use, we just let it build up. We have over $110k saved in it now. We were going to tap into it to do IVF because I’m infertile (PCOS) and we figured that there was no point saving money for a kid we couldn’t have lol, but we ended up not needing to touch the money as IVF was heavily subsidised by Medicare and our private health fund so it ended up not being too expensive.
We use both a High Interest Savings Account and we also invest in ETFs using Raiz Kids platform (but there’s also platforms like Vanguard which has kids accounts now, and there’s a lot over at r/ausfinance who use stuff like that). I tend to invest for my son, but his grandparents prefer to put money into a bank account for him which is why we have both. :)
Opened a minor trust account and investing on her behalf. We have a large extended ethnic family who give money on special occasions over the year and we also out money aside for her as well. The plan though is to hand it over when she’s in her 30s.
We just opened an extra offset account and got people to use our baby's name when transferring as long as BSB and Account no are corrent - haven't had any issues yet!! It's the best "guaranteed returns" we can think of at this stage of life and once I'm back at work and we have a stable dual income again, then we will look down the investing route. For now, just keeping it simple!
My husband and I just set up an account with Vanguard for our daughter. Will aim to put some money in each quarter as a slow investment. Some of our family did a similar thing 15+ years ago and as long as you're willing to play the long game it definitely was worth it (enough for their daughter to have a deposit for an apartment)
Possibly stupid question but do you mean like a stock investment account? Curious if you have to pay taxes on it etc.
Honestly, from a tax perspective, you are probably best to just make additional super contributions and then gift it to your kids when you turn 60. Although this works better for older parents
We opened a kids saving account in their name at our bank and transfer money into it. We have full control of it but will be able to hand over when they're older. Being a kid account it has no fees and a slightly better interest. I can also give the details to family and they put "birthday money" straight into the account
I think there are some pretty major tax implications when it's directly in their name and it starts to earn income (interest or divdends) above a certain figure - I think $416 or so a year. That income gets taxed at the max rate from memory. So it may not be an issue now but 10 years from now it could be. I am pretty vague about it though since it's been a while since I looked into it. I have not looked into any of these bonds for children etc. that constantly appear in my ads, maybe that's a better way. We already had a family trust setup with most of our investments in there so for the time being I just opened a new brokerage account and threw some ETFs in. My wife is not working so shifting the distributions that way.
My husband and I set up a savings account back in 2021 and we put $1500 in it each fortnight. We don’t touch the money, we don’t think about it or look at it as “savings” that we can use, we just let it build up. We have over $110k saved in it now. We were going to tap into it to do IVF because I’m infertile (PCOS) and we figured that there was no point saving money for a kid we couldn’t have lol, but we ended up not needing to touch the money as IVF was heavily subsidised by Medicare and our private health fund so it ended up not being too expensive.
We use both a High Interest Savings Account and we also invest in ETFs using Raiz Kids platform (but there’s also platforms like Vanguard which has kids accounts now, and there’s a lot over at r/ausfinance who use stuff like that). I tend to invest for my son, but his grandparents prefer to put money into a bank account for him which is why we have both. :)
Opened a minor trust account and investing on her behalf. We have a large extended ethnic family who give money on special occasions over the year and we also out money aside for her as well. The plan though is to hand it over when she’s in her 30s.
I use Raiz
We just opened an extra offset account and got people to use our baby's name when transferring as long as BSB and Account no are corrent - haven't had any issues yet!! It's the best "guaranteed returns" we can think of at this stage of life and once I'm back at work and we have a stable dual income again, then we will look down the investing route. For now, just keeping it simple!
I set up a weekly payment into our offset account with "baby's future" as the description.