How would MM invest $5k for my granddaughter?
I want to invest $5000 for my 7-year-old granddaughter, for 20 years. Any suggestions appreciated.
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Answer
Hi Reg,
A reminder that any advice here is of a general nature only.
I (James) have an 8 year old and an 11 year old. I am biased, but both are invested in Market Matters | Invest – click here. With 5k the Emerging Companies Portfolio is available. The account is in my name as trustee for my daughters. When they turn 18, because there is no beneficial change of ownership, there should not be a capital gains tax event.
With my elder daughter she does have some direct equities that she has chosen based on her experiences (only retail funnily enough!). These are more for education than anything.
Alternatively, an index fund like the A200 ETF from Betashares will be easy, cost efficient, and the returns will simply mirror the market.
