We all want the best for our kids, so it's worth investing now to give them a financial head-start in the future.
Two common reasons for starting a Six Park investment for a child are:
Ultimately the motivation is the same, and that is to create a "nest egg" for the child's future.
When it comes to investing for kids, time is one of the best friends you can have - that's why it pays to start saving and investing early.
That's also why Six Park is offering six months of free investment management to anyone who opens a new account for a child or grandchild.
Harnessing the power of compound interest offers an incredible chance to grow wealth for your children over time. If you’re lucky enough to be able to invest $10,000 for a child at birth (assuming 8% net return per year), then on their 21st birthday they'd have about $50,300. That’s five times the initial investment. If you're able to add $50 a month to the same investment, assuming the same rate of return, it's likely to turn into more than $90,000 (more than four times the amount invested) when your child turns 21.
If you've thought about investing for your children but haven't been sure where to start, Six Park would love to help you on your way. And with six months of free investment management, now is a great time to start investing for your child's future.
Click the "Get started" button below to take Six Park's risk assessment and get a free investment recommendation.
With interest rates at record lows, cash in the bank will not grow your savings – in real terms, it will barely keep up with inflation.
Investing gradually over the years can help smooth the expense of raising a child. Keeping costs low is an important part of this exercise.
Children’s savings accounts often have complicated terms and conditions that can make them less attractive than they initially seem. Six Park offers a straightforward alternative that can grow with your child from birth through to adulthood.
A legacy for her grandkids
When Amanda Derham was in her early 20s, a legacy from her grandmother changed her life and allowed her to buy her first car. Now Amanda is planning ahead to create similar legacies for her own grandchildren, setting up Six Park investment accounts for two-year-old Woody and his newborn sister, Piper. “The beauty of their Six Park accounts is that it will be growing. Money gives you choices, so I’m giving my grandkids a choice,” she says.
Future on his mind
As a father of four young children aged between 3 and 9, Marc Bullen knows he needs to think ahead when it comes to money. “We were putting a few dollars a week into individual accounts but now we’ve combined that in a family trust to make sure we’ll be able to help them in the future – whether it’s buying a car, education, or helping them with travel, which I didn’t really get to do.It’s only a small amount, but it all makes a difference when you continue to reinvest. We’re making regular deposits and then putting in extra payments when we can."
For legal reasons, Six Park does not open accounts in the name of people who are under 18 years of age.
There are two main ways to invest on behalf of a child or grandchild who is aged under 18. Six Park can’t offer tax advice, so you may wish to speak to a tax adviser or accountant about the advantages and disadvantages of each option from a tax perspective.
1. A parent or relative signs up as a client.
Using this method, the investment portfolio is legally held in your name. We can add a designation to the account, which you choose, that acts as an identifier (for example, “Sarah’s account” or “Ben’s account”). The designation is added during the account creation process.
2. Using a family trust.
A discretionary family trust can invest in Six Park with a child as a beneficiary. Legally, the assets are held in the name of the trustee.
You'll need to supply a copy of the child's birth certificate to show they are under 18 years old.
To start your journey with Six Park, click the "Get started" button.