Ask Paul: My five-year-old made $1000, how should we invest it?
Q. ￼My wife Nikki and I and our five-year-old boy, Tully, have just spent 12 months in Alice Springs.
Tully and I would walk the dogs and collect cans and bottles as we went.
He now has $1000 to invest. I was thinking of putting it into Australia Foundation shares for him.
What are your thoughts? - Cheyne
A. I always enjoying answering readers' questions and this month there is such a variety but I must say yours is my favourite.
I remember that as a young kid in Griffith my mates and I used to go to the races and collect cans and bottles, making a few dollars. Great memories.
I would be very happy for you to buy young Tully shares in Australian Foundation Investment Company.
It holds a diversified portfolio and has an excellent track record and reasonable fees.
Equally you could go with a more personal strategy.
About 20 years ago, my son Marcus, who is now 28, was interested in how much Coke his mates drank, so we helped him buy a few shares in the company.
As he grew older, he thought banks were interesting, so we helped him buy a few bank shares. It is a bit chicken and egg - I have no idea which came first - but this turned into quite an interest and he did an economics degree and a master's and now works with a major global fund manager.
Whether you go with AFIC or shares you choose, don't underestimate what you are doing for Tully.
Good on you!