Ask Paul: Can I top up my teens' super to help them buy property one day?
I have two daughters who are 16 years old. They have both opened a super account through Hostplus.
Am I able to give them money to put into super to be used in the future for the First Home Super Saver scheme?
If so, what is the limit and does the money need to come from their accounts or can it be done from my account?
I have been saving a regular amount for the past 10 years and would like to transfer this amount (about $10,000 each) into super or into an exchange traded fund, as the accounts are only earning a small amount of interest. - Kim
This is great, Kim. Teaching our kids about money and kickstarting them is brilliant.
Under-18s have the same caps and limits as adults, so you could add their money to super.
What worries me, though, is whether you want the money locked away for possibly over half a century? This decision depends on you and your kids' personal situation.
There are times when investments are better locked away for decades.
I strongly agree you need to get that money growing.
But in your situation, with kids your age, I am left thinking that access to the money at some point in time would be very helpful, maybe as part of a house deposit.
Your call, but I'd be heading for the other option you mention, a good ETF or indexed fund, such as those offered by BlackRock, Vanguard and quite a few other huge, low-cost managers.
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