In the lead up to Christmas, we have been reviewing how you can invest on behalf of your kids or grandchildren. Last week, we looked at buying shares, kids’ bank accounts and tax issues for minors.
In this second part, we look at two indirect investment options - insurance bonds and education savings plans.
But before this, a brief comment on CommSec Pocket which we didn’t cover last week. This is a micro-investing app that makes investing very accessible by having a minimum investment size of just $50 and brokerage of $2. With Pocket, you can invest in 7 exchange traded funds (ETFs) – for example iShares IOZ (which tracks the S&P/ASX 200) or BetaShares NDQ (which tracks the NASDAQ 100). You can set up a regular investment plan where Pocket is on autopilot to invest an amount every month (or other period you determine). For kids and grandkids, this can be a great way to build a nest egg over time.