Ask Paul: Should we gift our grandson an investment for his 18th?


Dear Paul,

Our 17-year-old grandson is a first-year apprentice. For his 18th birthday in January, we would like to buy him a managed share fund to start him off. 

He is a very good saver. Is this a good idea? Suggestions for other investments would be appreciated. - Nola

ask paul clitheroe should we gift our grandson an investment for his 18th birthday

This is a ripping idea, Nola. I'd go to a reputable, very low-cost investment manager and choose a growth-style fund with the ability to make extra contributions.

Names here include big managers such as Vanguard and BlackRock.

Something we do for our grandkids is run by InvestSMART.

I am chairman of this company, so obviously biased, but I do like their Fundlater, where you pop in $4000, they add $6000, making it a $10,000 investment, which you then pay off in monthly instalments of $325 over 20 months.

It all depends on your starting amount and whether you want to add to it from time to time. Auto Invest offered by Vanguard is also a great idea.

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Paul Clitheroe AM is founder and editorial adviser of Money magazine. He is one of Australia's leading financial voices, responsible for bringing financial insight to Australians through personal finance books, the Money TV show, and this publication, which he established in 1999. Paul is the chair of the Australian Government Financial Literacy Board and is chairman of InvestSMART Financial Services. He is the chair of Financial Literacy at Macquarie University where he is also a Professor with the School of Business and Economics. Ask Paul your money question. Unfortunately Paul cannot respond to questions posted in the comments section. View our disclaimer.
Money magazine
January 3, 2024 4.34pm


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