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  • #997368
    Soccerooplugger
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    I’m looking at maybe setting up a share investing facility for my daughters.

    As they are minors and still at school (11 and 14), I have to set it up in my name in trust for them.

    I just tried the ANZ Share Investing online. It told me that I could not set up for this online.

    Does anyone know of a good platform or online service for share investing for minors in trust? I used to use Nabtrade.

    Not really looking to do lots of trades. Just purely want to buy a parcel of shares relatively low risk. Keep in the account until they are 18. Receive a few dividends. Maybe investing around $500-$1000 each. Then they can do what they want when they are 18 and have ownership of the shares?

    #1211753
    Ross Forrester
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    If a child generates more than $416 in investment income they will incur tax at the rate of 68% (once they are over $1,307 it goes back to 47%).

    You could look into some different type of investment products like an insurance bond. These products are taxed within the product itself and you can withdraw monies from it in 10 years time tax free.

    You would need to speak to a financial product advisor for details on which insurance bonds are right for you.

    #1211754
    Soccerooplugger
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    Thanks Ross. So does that mean a child would have to get a tax file number?

    #1211755
    Ross Forrester
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    Soccerooplugger, post: 252851, member: 100555 wrote:
    Thanks Ross. So does that mean a child would have to get a tax file number?
    Yes – if a child earns more than the tax free threshold they need a tfn and to do an income tax return.
    #1211756
    Chrispro
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    Ross Forrester, post: 252812, member: 101125 wrote:
    If a child generates more than $416 in investment income they will incur tax at the rate of 68% (once they are over $1,307 it goes back to 47%).

    Hi Ross,
    I assume though that this likely wouldn’t be an issue for a fair while? If OP is talking about investing say $1k and the only income is dividends then I think he’ll have trouble finding a stock returning over 40%?!! Point being that if dividends are the only income then there is nothing to worry about till they sell. If they sell after they’re 18 then they would just pay CGT at their standard marginal rate at the time wouldn’t they? (And in fact that would be halved due to the time held wouldn’t it?) Or am I missing something?

    #1211757
    Ross Forrester
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    Chrispro, post: 252966, member: 84887 wrote:
    Hi Ross,
    I assume though that this likely wouldn’t be an issue for a fair while? If OP is talking about investing say $1k and the only income is dividends then I think he’ll have trouble finding a stock returning over 40%?!! Point being that if dividends are the only income then there is nothing to worry about till they sell. If they sell after they’re 18 then they would just pay CGT at their standard marginal rate at the time wouldn’t they? (And in fact that would be halved due to the time held wouldn’t it?) Or am I missing something?
    Dividends increase over time – so initially their is not really a problem. As you add it gets bigger and bigger.

    I have seen these become a problem and it is not great.

    Start something with the end game in mind.

    My two cents.

    #1211758
    Chrispro
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    Ross Forrester, post: 252972, member: 101125 wrote:
    Start something with the end game in mind.
    My two cents.

    Sure, I understand. I jut didn’t see the likelihood of huge tax liabilities given a starting point of $1k and only 4 – 7 years to maturity, at which time the tax liability is decreased anyway. But I absolutely agree that you certainly want to consider what’s going to happen down the track.

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