Ask Paul: Where can we start investing for our newborn?


We have recently had a baby boy and would like to set up some form of investment or account where we will deposit money on a regular basis.

Our intention is that he will access it later in life.

What do you suggest would be a suitable course of action that has limited risk but will tick over until the time comes? - Rob

A. What a great idea, Rob!

Angus is keen to reduce the interest payable on his new home loan, but paying down a mortgage early is a trap for many property owners says Paul Clitheroe.

My parents did this for me from birth with not a lot of money each year and in my mid to late 20s it made a huge difference to buying a home and starting my business.

We did the same with our three kids and are about to do it again with our new grandchild.

I suggest an exchange traded fund (ETF) where you can make regular contributions.

The huge and very low-cost managers such as Vanguard and BlackRock are an easy way to get a global or balanced-type fund.

Dollar cost averaging and compound returns will do the heavy lifting for you.


Paul Clitheroe AM is a respected financial adviser and Money's chairman and chief commentator. He is chair of the Australian Government Financial Literacy Board, and author of several personal finance books. Got a money question? Ask Paul.
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