In the lead up to Christmas, we have been looking at how you can invest on behalf of your kids or grandchildren. In the first part of this 3 part series, we covered how minors (people aged under 18) are taxed, whether your child needs a TFN (tax file number) or not, who is liable for paying any tax and we also reviewed some of the bank deposit accounts especially designed for kids. (For our first article, please click here.)
Last week, we discussed how to buy shares directly for your kids – either in a portfolio you create, or in a pre-mixed share pack. (See here.)
In the third and final part of this series, we look at two indirect investment options - insurance bonds and education savings plans.