Best long term option to invest 20k for child?

[Frodo]

It's none of their business what I want to do with my money!

They are both well insured for health issues.

So you must have read RDPD

Personally showing...LOL

I guess to you that means a few trips down the casino

 

[Frodo]

It's none of their business what I want to do with my money!

They are both well insured for health issues.

So you must have read RDPD

Personally showing...LOL

I guess to you that means a few trips down the casino

And yes, I've consulted them...and they agree

 

[SirJimi05]

Why wouldn't you want to leave your assets to those you love?

 

[bunsen burner]

I don't know anyone who wouldn't be pissed if their parents left their money to someone else.

 

[bunsen burner]

And yes, I've consulted them...and they agree

Bullshit. You're either lying or they're lying and you are delusional.

 

[kriles76]

Why wouldn't you want to leave your assets to those you love?

They might be tiprats, gamblers or substance abusers. If you've slaved away and deprived yourself of many selfish pleasures to build a nest egg, you don't want to see it getting pissed up against the wall.

Case in point...

http://www.ntnews.com.au/article/2008/12/23/23555_ntnews.html

And in a related story....

http://www.ntnews.com.au/article/2009/01/07/25775_ntnews.html

 

[bunsen burner]

They might be tiprats, gamblers or substance abusers. If you've slaved away and deprived yourself of many selfish pleasures to build a nest egg, you don't want to see it getting pissed up against the wall.

Case in point...

http://www.ntnews.com.au/article/2008/12/23/23555_ntnews.html

And in a related story....

http://www.ntnews.com.au/article/2009/01/07/25775_ntnews.html

1. Never heard of a trust? A trust allows the capital to be protected and an income for the child. This income might just stop them committing crime or prostituting themselves
2. Are you suggesting you shouldn't leave your inheritance to your kids in case they masturbate whilst driving? Not sure why you needed to post that second link?

But, back on the issue at hand. Fraudo's kids are far from drug addicts. Do you have any good reason why you would leave them your inheritance?

 

[Frodo]

1
But, back on the issue at hand. Frodo's kids are far from drug addicts. Do you have any good reason why you would leave them your inheritance?

a) They don't need it
b) Medical research and an education trust are more worthy.

 

[bunsen burner]

b) Medical research and an education trust are more worthy.

Glad to see you hold your own children in such high esteem.

 

[strengthwithin]

Personally I wouldn't touch Telstra with someone else's dick.

They own the copper wire infrastructure but things are going wireless and mobile. They seem too cumbersome to be cutting edge technology leaders.

I just can't see obvious upside.

I disagree, no major infrastructure upgrade in this country can go ahead without the help of Telstra. Anything to do with communications in this country needs a helping hand from Telstra just to be feasible. The whole problem with the Optical Fibre upgrade was the fact Telstra was not involved after the tender process, the government knew this and later tried to renegotiate with them.

Telstra will always be a big player in Australian communiations and no other telecommunications company can solely survive on their own without using pre-existing Telstra infrastructure. By no means are they a sure bet on the stock market but you can't write them off completely. They are the QANTAS of communications in Australia.

 

[DeanoT]

I disagree, no major infrastructure upgrade in this country can go ahead without the help of Telstra. Anything to do with communications in this country needs a helping hand from Telstra just to be feasible. The whole problem with the Optical Fibre upgrade was the fact Telstra was not involved after the tender process, the government knew this and later tried to renegotiate with them.

Telstra will always be a big player in Australian communiations and no other telecommunications company can solely survive on their own without using pre-existing Telstra infrastructure. By no means are they a sure bet on the stock market but you can't write them off completely. They are the QANTAS of communications in Australia.

All of those reasons have existed for the past ten years, and yet both TLS and QAN are worth about half what they were a decade ago. The key to growth in share price is profit growth (something TLS and QAN severely lack), not your market share or monopoly.

 

[strengthwithin]

All of those reasons have existed for the past ten years, and yet both TLS and QAN are worth about half what they were a decade ago. The key to growth in share price is profit growth (something TLS and QAN severely lack), not your market share or monopoly.

I wouldn't put my money into them either because it's just a poorly run company (thanks Sol) but all it takes is a CEO with some forward thinking and they can easily increase their profit margin.

My reply was in reference to the poster saying they will be left behind the pack because of wireless and mobile networks not as to whether they will drastically increase their share price. FWIW banks and RIO are a better bet but Telstra has the foundations to possibly compete.

 

[matera_goal]

Hi Folks,

I want to put away 20k for my soon to be born child for when he turns 18. What would be the best place to invest it for long term gains?

I've never really been into shares nor do i know much about them. Is this a viable option still?

I don't want to have to think about it or do anything once it's invested.

Would a simple long term deposit be the way to go. Obviously re-investing the matured funds at the completion of every term?

What do people think?

Wish my parents could have done something like that Your child will be very grateful, especially if you teach him/her the value of money and that 'if you want anything, you have to pay for it yourself'

 

[Colin D'Cops]

Wish my parents could have done something like that

Ditto. I have had to work pretty damn hard to just fall under that mark, and am almost 17. Would've been money for a nice second hand car (around $8K) and a real small deposit on house ($12K - better than starting from $0 like I had to ).

 

[yeah_nah]

Wish my parents could have done something like that Your child will be very grateful, especially if you teach him/her the value of money and that 'if you want anything, you have to pay for it yourself'

Agree however it is very important your child realises the value of money BEFORE any of this money is given to them. And also make sure they spend it on something like car, or deposit on home etc. and not use it as money to get around and piss up etc.
Otherwise you've just got a spoilt brat who will think you owe the world to them.

 

[Cuzz09]

I had about that in a simple bank account with Commbank and cant remember what % rate I was on but I was getting back about $150-$200 a month interest and I had about $20,000 in there when I was saving for a house deposit...

Anyway...

Starting with $20,000.......

Working with say $120 interest/month.......

($120/month x 12 months = $1440)
($1440/year x 18 years = $25,920)
$25,920 + initial $20,000 = $45,920

After 18 years...

He'll be cheering

 

[bunsen burner]

Agree however it is very important your child realises the value of money BEFORE any of this money is given to them. And also make sure they spend it on something like car,

If they know the value of money they're not going to spend it on a car.

 

[bunsen burner]

I had about that in a simple bank account with Commbank and cant remember what % rate I was on but I was getting back about $150-$200 a month interest and I had about $20,000 in there when I was saving for a house deposit...

Anyway...

Starting with $20,000.......

Working with say $120 interest/month.......

($120/month x 12 months = $1440)
($1440/year x 18 years = $25,920)
$25,920 + initial $20,000 = $45,920

After 18 years...

He'll be cheering

Compound interest, anyone? $45k will be worth a NTTAWWTteenth of f***all in 18 years.

No not really, just wanted to say a NTTAWWTteenth of f***all. I have a senior manager from a client company say that to me a couple of years back and it still makes me laugh. The guy dressed and thought he was Don Jognson from Miami Vice.

Anyways, here's your figures assuming 6% pa:

20,000 x (1.06 to the power of 20)

= $65,000

 

[Cuzz09]

Keep all your $5 notes in a can (that you cant open)

I've started doing it and in 4 months I've put away $300

My rule is every time I walk into my house with a $5 note inmy wallet it goes into my little can and thats that!

Im opening it before Chrissy for that cr@zy time but that would be a cool way to put money away and imagine giving your kid that! - I know I'd be happy


*** Going on a rate of $300 every 4 months ***

$300 over 4 months = $75 month

18 years = 216 months

216 months = $16,200 in $5's

$16,200 in $5's = 3,240 $5 notes flying around (that wouldn't look dodgy to the banks or wherever you took it)

 

[bunsen burner]

Keep all your $5 notes in a can (that you cant open)

I've started doing it and in 4 months I've put away $300

My rule is every time I walk into my house with a $5 note inmy wallet it goes into my little can and thats that!

Im opening it before Chrissy for that cr@zy time but that would be a cool way to put money away and imagine giving your kid that! - I know I'd be happy


*** Going on a rate of $300 every 4 months ***

$300 over 4 months = $75 month

18 years = 216 months

216 months = $16,200 in $5's

$16,200 in $5's = 3,240 $5 notes flying around (that wouldn't look dodgy to the banks or wherever you took it)

I do coins. I have a big arse money tin and everytime I get home I empty my coins in it. About every 4-5 months I fill it and it usually has $1500 in it.

 

[Cuzz09]

I do coins. I have a big arse money tin and everytime I get home I empty my coins in it. About every 4-5 months I fill it and it usually has $1500 in it.

Serious!! WoW thats awesome!!

I started doing coins - Got 1 can for silvers and 1 for gold.. the silver filled up in like 2 months but there was only $60 in there, anyway I opened up the gold which was only half full and it had $250 - I was pleasantly surprised...

I chucked them all together in one of those big $100 note cans (that you buy from cheap as chips or wherever) they are good coz you cant just pop the bottom off, you have to cut it open like a can opener hehe

$1500 every 4-5 months is sensational!! I should start asking for my change in coins no matter what

 

[DeanoT]

Keep all your $5 notes in a can (that you cant open)

I've started doing it and in 4 months I've put away $300

My rule is every time I walk into my house with a $5 note inmy wallet it goes into my little can and thats that!

Im opening it before Chrissy for that cr@zy time but that would be a cool way to put money away and imagine giving your kid that! - I know I'd be happy


*** Going on a rate of $300 every 4 months ***

$300 over 4 months = $75 month

18 years = 216 months

216 months = $16,200 in $5's

$16,200 in $5's = 3,240 $5 notes flying around (that wouldn't look dodgy to the banks or wherever you took it)

A good plan in theory, but the govt will kill it with inflation!

 

[Scotland]

I've got a couple of beer jugs I throw all my coins into. Not intending to save hundreds from doing so, I just don't like having coins in my wallet/pocket.

Have emptied them out and taken the contents to the bank a few times, usually $300+ in there.

 

[RedBullRacing]

Old thread, but full of information.

I have a son who is coming up to 12 months, unfortunately I have separated from my partner, and she has taken him interstate (She was supposed to bring him back), and now she is being super difficult with everything.

I realize that no matter what happens, I have to start putting money away that can help me spend time with my son in the future, but also to have a nice sum for him to study or invest when he is 21. 18 is too young for my liking.

https://static.vgcontent.info/crp/i...dingPage&utm_campaign=Ret2016&utm_content=Ret

I saw this chart and it made for some interesting reading. I am aware on the past performance does not indicate future performance, and you could be fooled into thinking that the cash rate will be good for you in the next 20 years, as it was heavily influenced in the late 80s.

I really like the Australian bonds option as it has the least amount of variability, and yeah sure you would get less return long run, but it seems a safer option. Wondering if anyone has used Vanguard, and what they are like.

At the moment, I am putting away $50 per week, and considering upping that rate by cpi every year. This money is to be for travel to see my son, holidays, doing stuff together, building stuff together and a modest sum for his future. I want him to appreciate money and would like him to be able to become involved in his teens with the investing, and working hard to increase this sum. I'm thinking that $50 a week should be able to do what I need to do while continuing to grow the investment long term.

Any thoughts?

 

[Rotayjay]

I am seriously considering parking a modest sum in an ASX-listed index fund. As Warren Buffet said, share traders (as a whole) can't beat the market because they ARE the market. A ~9% p.a. return on investment with sweet f*** all fees doesn't sound bad.