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Hey Bryan, another question for you. If someone has a big HECS debt (over 50k) should that person focus on paying down that debt or investing or maybe a bit of both ?
@@kairos_fluent It depends on the interest rate. I see HECS interest is around 7.1% due to the indexation. If that's what you're being charged then I would pay off the HECS debt. You'll struggle to find an alternative investment that guarantees you a 7.1% tax free return. It's true that you may get a bit more by investing but the risks don't outweigh the reward in this case. Not to mention the psychological relief of paying off a 50k debt. If the HECS interest rate was lower then that's another story. You could potentially do a bit of both.
With a Baby due in 6 days....this is exactly what i was wondering. You my good Sir, are excellent at explaning the details to this simple minded investing father to be.🎉
Woah, congratulations man! Really happy for you and your family. A lot of happiness coming to your household brother. It will be tough at first but so worth it. Good luck and hope all goes smoothly 💙
Can you please do a cmc markets vid tutorial. Ive joined but so lost what to do next? Where and how to buy and where &how to research. Also a video on researching, what to look for, what are good indicators, what do different terms mean? Etc
Hey Maddie, yes it does. However, it’s very biased towards Vanguard products so unless you want to invest in Vanguard only you may want to consider other brokers that are more flexible.
Thanks Bryan for making such great videos. i have a question.. if i use commsec to apply for my daughter using her TFN, what about HIN, should i apply HIN for her as well before registering for her? how do i go about doing that? thank you so much.
Great video, thanks. I wanted to know if I can hold the account even after they turn 18 keep it longer and transfer when they are 24? Coz my child is 14, I want to invest for atleast 10 years before transferring
Bubble! Thank you for sharing your knowledge. I have 2 young kids and looking to start investing for them (don’t have much but got to start somewhere!). Is there a way to find out with ETF pays dividends? I would like to invest as a trustee for them as well as focus on capital growth rather than dividends. Thanks
Hi Jacyln, it's wonderful to hear you want to invest for your kids. They will thank you when they're older. The easiest way is to just google ETF you're searching for plus dividend yield. Eg. VAS dividend yield. And if something pops up with a %, you know they pay a dividend. Then you can on their official website and research more.
Hey Jade, VOO is actually a US version of the S&P 500 so you'll need a broker that offer US stocks. For all US stocks, I'm currently using Moomoo who have a generous promo at the moment if you're interested: bit.ly/3PgUN6E If you're interested in the Aussie version of the S&P 500 then you can look up IVV. Then you can use an Aussie broker like Stake to buy it. bit.ly/3L13UGm
Hi Bryan, thanks for your sharing your knowledge, I am loving all the content you post. Just weighing this option for my son. He has savings stored in a joint account I share with my wife. It is returning 5% interest a year. Considering the high marginal tax rate a child pays when earning over $416, is it really worth investing the money in a Trust account for minor? Or as long as you don't sell the shares (buy and hold for 10 years) do you not pay tax until it is time to cash out the shares?
Hey JP, that's a great question. Investing is all about weighing risks vs reward. You are correct, you won't be charged for capital gains until your shares are sold. So share price increases won't be taxed. However, you will be taxed on dividends (income) so if you go the investing route, you could consider high growth ETFs that don't any or minimum dividends. If you're only plan to invest a few thousand a yet, then I don't think it will go over the $416 threshold for a while. Another option would be to just invest for your son under your own name. However, the opportunity cost will be the shares will never really be 'his' and he will miss out on the feeling of owning shares and the curiosity that comes with it. Good luck mate. Wish you and your family well for the future 💙
@@BryanInvest , legend! That makes more sense to me now as a sound investment. You are right, I doubt I would be inputting more than a $1000 a year. It’s more of a holding account for birthday gifts from the family, so I’ll focus on high growth ETFs with low dividends to minimise income tax. Thanks again!
Hi Bryan, cheers for the Australian specific content. I want to invest for my two boys but I don’t want to hand them tens of thousands of dollars when they turn 18 because young boys are well… young boys. It’ll get spent on cars and beers defeating the purpose…. Is there anyway I can lock it up till they are 21?
Hi Dylan, I’ve had a look online on this topic and can’t see any clear answers. However, from the bits and pieces I read, it’s my understanding that the trust account is an option, not obligation, to hand over the account to your child at 18. There is no rule that states you have to hand over the account at 18. So you could choose to wait until 21. I would double check this with the broker you sign up with though. Wish you all the best to you and your boys 👍
Buble mate. Question. In Spain when you put money into your child’s account it is considered a donation and it is subjected to taxes. Here in Australia. Do you have to pay taxes every time you transfer money to your children’s account?
Hi Fernando, good question! There is no gift tax in Australia so you won’t have to pay tax if you transfer to their account. However, please note Children pay a higher tax on income above $416. So just keep that in mind if you set up an investing account under their name.
Good question. As long as your child’s tax residency is Australia then it should be fine. You won’t be double taxed. If she was to move to the UK and switch residency then it may have an impact. I think this article may help: community.ato.gov.au/s/question/a0J9s000000MdrN/p00184395
Bubble..Bryan is it the same for grandchildren, I want to set some up for my two grandkids, does it need to involve their parents tax returns or can I use mine? thx
Yes, I believe it’s the same for grandchildren. I don’t think you need to involve their parents. www.commsec.com.au/products/minor-trust-accounts.html#:~:text=Whether%20you're%20a%20parent,on%20the%20right%20financial%20path.
I don’t believe so. However, keep an eye on the dividends. If it goes above $416, you will have to pay more tax. Check out this article to learn more: www.ato.gov.au/individuals-and-families/investments-and-assets/investing-in-shares/owning-shares/children-s-share-investments
Click on the settings icon and you can slow the video down to a pace you can listen to. 😊 Not the case here, but often people waffle on with so much that I'm always speeding videos up to get to the purpose of the video. 😂
Bubble, Are we in a bubble at the moment? how does investing in a child with a max of $416 compare to distributing wealth from a family trust? Can you distribute wealth from a family trust to a child, and is that taxed at $416 or the minimum TFF ?
Hi Bryan, great video. I am currently 15 and looking to invest, If my parent invests the money for me, are there fees involved in opening a commsec or another account Edit bubble
Hi Mike, well done for looking at investing at 15! There won't be fees involved in opening the brokerage account itself. The fees that you need to keep an eye on are the brokerage fees (to buy and sell your shares) and any tax implications if you sell or receive dividends.
If I apply TFN under my child's name, does it mean the child will be subject to normal personal income tax, not the higher rate when income is $416 above?
No, I believe they would still be subject to a high 66% rate if the income is between $417-$1,307. www.ato.gov.au/rates/Tax-rates-if-you-re-under-18-years-old/
Hi Bryan, just tried signing up through a commsec minor trust account? There was no option for me to add my child’s TFN number only mine. Wouldn’t that mean I would still pay CGT when she turns 18?
Great question. I believe you can but should you is another question. I think this article is helpful: wealthconnexion.com.au/set-up-a-super-fund-for-your-kids/
What happens when child decide to sell shares when they turn 18? After it’s transferred under their name? Do they pay capital gains for the whole time?
Bubble, love your videos mate. Hi I have 3 kids. A 3 year old and 2 2 year olds (twins) I want to invest on their behalf. And give to them when they turn 25 or so. 1. Can I open one minor account in all 3 of their names? 2. Will ill they have to pay any CGT when it gets transferred to them?
Thanks mate. 1. There’s no limit on how many children you can be trustee for but I think you do need to create multiple accounts with each name. 2. You won’t have to pay CGT when it gets transferred over but they will need to pay it from the original cost basis when they do eventually sell it. Hope this helps. Good luck!
Hey Bryan, but when the children sell the ETFs any time after they turn 18 say when they are 24 will they be paying the marginal tax rate based on their income at that time ? Or do you think its more tax efficient to hold the shares/ ETFs under parents name and sell it and gift it to the child when it's the right time? Also are you certain transfering the ETFs or shares from the "informal tust" account to a child will not trigger a capital gain tax? Just asking this question as it's been some time since you made this video . Thank you so much for clarifying
Just today I set up some minor accounts via pearla for my children. I used my own tax file number when it asked. Was I supposed to get them their own tax file number?
Good question. I don’t believe so. If Raiz Kids is a minor trust account with your child’s name as the beneficiary then I believe you need to pay tax when transferring the shares over. Unless of course you sold some shares prior then you would need to pay CGT. Best to double check with a tax accountant.
Bubble - thanks Bryan! I'm a recent subscriber on your channel. You're doing a great work! My question: Can I invest on behalf of my children on the Stake platform?
@@BryanInvest Thank you Bryan! What are some of the high growth companies or ETFs that pay minimal or no dividend? Also, could you kindly share some brokers/investing platforms that offer a minor trust account?
Bryan is there a way to slow down video. Its too fast for me when im trying to understand. Feels like i need the text transcribed to read it. 😂 Sorry but no, genuine question. 🙏
Haha, sorry I do speak quite fast. I'm trying to slow down for the camera in future videos. You can actually make the video slower on RUclips. Click the settings icon and reduce the 'playback speed' to about 0.75 or 0.5.
You said $100 per month investing, but min buy is $500, so what, every 5 months you invest? And how do you know which one to buy in if you have several individual stocks? This way of investment is called dollar cost averaging??
Yes, when using a chess sponsored broker including the ones mentioned in the video, you need to buy a minimum of $500 every time you buy a new stock. After that, you can then buy in smaller increments like $100. Eg. If you want to buy stock A, you will need to invest $500 for the first buy then after you can invest $100 each time. If you want stock B, you will need to invest $500 again for the first time and so on. And yes, buying the same stock in regular intervals is known as dollar cost averaging.
@@BryanInvest hey thanks Brian I did not know that, so I guess only downside is your paying a broker fee ($10 for me with nabtrade) for a small buy($100)
@@BryanInvest thanks Bryan, one child is 18 yr old, but my 14 yr old is keen on purchasing ETF shares for long term investment, pretty much I have encouraged him to purchase and forget with auto contributions and with our help until he has a part time job, which I’m encouraging also in 9-12 months time.😬
@@HelSpe-gq2jk That's so lovely to hear that you are educating them about investing at a relatively young age. I wish my parents taught me these things when I was younger. Your boys have decades ahead of them so if they start now and stay consistent, there's a high chance they will be millionaires one day.
No worries mate. I had a look in Commsec and it doesn’t mention you have to be parent. So yes, I believe you can create a minor account for anyone of that age whether you’re the parent, grandparent, uncle, aunt etc
Hello Bryan great video great explanation was wondering just started investing I've started a Raiz account for my son and myself is Raiz not very good or should I create a commsec account to start off? Thanks. /bubble :)
Hey mate, well done for investing for your son. He's going to really appreciate it when he grows up! Raiz isn't particularly bad but I find it's an online broker on training wheels. It's great for beginners who are too intimidated by regular online brokers. You are essentially investing in similar things in Raiz as you would if you used Commsec or any other online broker. The difference is you don't own the shares directly with Raiz so you have less flexibility like receiving dividends. Also, if I find their options are a bit too over diversified. Each option is made up of 8 ETFs/asset class. You can look at starting a Commsec or Selfwealth (cheaper fees) Minor Trust account for your son if you want to be more particular about what you want to invest in. On the other hand, if Raiz works for you then don't be pressured to change.
I have had RAIZ accounts for my kids for almost a year now, it's a little clunky with how to view the performance and pick your ETF's but the best thing about it is they don't charge fee's on the kids accounts and as far as I know...there is no requirement for a minor to have a TFN and declare anything to the ATO in regards to savings...which an investment account that you regularly deposit into is considered to be, otherwise why wouldn't they be required to have a TFN and pay tax/do a tax return for their everyday savings accounts and term deposit/trust accounts ??
Hi Brian, Very good and informative VDO. I have started investing for my daughter who is 9 year old via my Vanguard Personal Account, investing for kids. But you talking about tax when I will transfer the investment to her name when she is 16 of ages. How many percent of tax I have to pay - my tax margin rate at the time???? Or should I change the kids investment to Comsec. Looking forward to hear from you
Whoever has control of the account can trade on the account. I think it is a judgement call. If the minor is way too young then the trustee should be the one making the trades.
Bubble :) Hi Bryan, If I purchase long term growth stocks for my daughter, via a custodial account like mentioned in the video, (No dividends, purely growth stocks). would I still have to lodge a yearly tax return for her? I'm super confused about this.
Hey Kaycie! Well done for investing for your daughter. She’s going to be so grateful when she’s older. No, you don’t need to lodge a tax return for her in this case. Unless your daughter has a part time job where she has earned income over $416 or if you sold some of the growth stocks for a profit (capital gains tax). Wishing you all the best for you and your daughter ☺️
@BryanInvest hey mate there must be a more tax effective way to invest for kids 66% or even 47% is not beneficial for the compounding machine. Do you know of any other tax efficient ways. Maybe holding company, trust, nz foreign trust. This would help alot ?
Oh wow. Thanks for the info, Jas. This may be a better option than Commsec and SelfWealth given CMC’s zero brokerage on Aussie shares under $1000 per day. I may have to do more research and update! 😆
This is awesome that you are sharing how people can start investing to get their kids financially ahead. Definitely the best way to build generational wealth.
#bubble I've been wondering about getting my kids on investing but didn't know if it was possible, them being only 8 amd 9 years old. And you just gave me the answer. Cheers Brian. An awesome content once again. I gotta look onto this now. If you have more info or know how for dummies 😅 for this. I'm highly interested. Thanks again.
Hey Michael! Your kids are at a great age to start learning about money and investing. Like I said in the video, you could research some companies together and teach them that mindset from an early age. It will be fun for them too. Eg. If you invested in a S&P 500 ETF, they can claim they own parts of Apple, Google, Tesla etc 😄 there’s always something new to learn with investing. More videos coming soon mate.
Hi Brian, Very good and informative VDO. I have started investing for my daughter who is 9 year old via my Vanguard Personal Account, investing for kids. But you talking about tax when I will transfer the investment to her name when she is 16 of ages. How many percent of tax I have to pay - my tax margin rate at the time???? Or should I change the kids investment to Comsec. Looking forward to hear from you
Hi Brian, Very good and informative VDO. I have started investing for my daughter who is 9 year old via my Vanguard Personal Account, investing for kids. But you talking about tax when I will transfer the investment to her name when she is 16 of ages. How many percent of tax I have to pay - my tax margin rate at the time???? Or should I change the kids investment to Comsec. Looking forward to hear from you
Hi Brian, Very good and informative VDO. I have started investing for my daughter who is 9 year old via my Vanguard Personal Account, investing for kids. But you talking about tax when I will transfer the investment to her name when she is 16 of ages. How many percent of tax I have to pay - my tax margin rate at the time???? Or should I change the kids investment to Comsec. Looking forward to hear from you
Hi mate, yes you may have to pay capital gains tax if you are transferring over your shares to you daughter at a later date. This will be taxed at your marginal tax. You can avoid this by setting up a trust account with commsec or any other broker that allows it. Commsec recently changed their brokerage to $5 for under 1k to buy shares so could be good option. Here’s a useful article if you want to know more about gifting your shares: www.ato.gov.au/Individuals/Investments-and-assets/Investing-in-shares/Disposing-of-shares/
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Hey Bryan, another question for you. If someone has a big HECS debt (over 50k) should that person focus on paying down that debt or investing or maybe a bit of both ?
@@kairos_fluent It depends on the interest rate. I see HECS interest is around 7.1% due to the indexation. If that's what you're being charged then I would pay off the HECS debt. You'll struggle to find an alternative investment that guarantees you a 7.1% tax free return. It's true that you may get a bit more by investing but the risks don't outweigh the reward in this case. Not to mention the psychological relief of paying off a 50k debt. If the HECS interest rate was lower then that's another story. You could potentially do a bit of both.
With a Baby due in 6 days....this is exactly what i was wondering. You my good Sir, are excellent at explaning the details to this simple minded investing father to be.🎉
Woah, congratulations man! Really happy for you and your family. A lot of happiness coming to your household brother. It will be tough at first but so worth it. Good luck and hope all goes smoothly 💙
BUBBLE... Fantastic summary, I've been researching all of this on line, & my son found your video which summarised it all perfectly
Awesome! Hopefully it can help you and your son get started on your investing journey. I wish you both all the best 💙
Don't forget investment bonds and education bonds!! The ultimate tool for tax minimisation (especially for high income earners) and asset protection.
Can you please do a cmc markets vid tutorial. Ive joined but so lost what to do next? Where and how to buy and where &how to research. Also a video on researching, what to look for, what are good indicators, what do different terms mean? Etc
Hey Shaizy, no worries. I will make a tutorial video on CMC soon 😊
Just what I needed know to start investing at my age. 😊
Hi Bryan! Does the vanguard personal investor kids account operate in the same way? Thank you for the incredible helpful content!
Hey Maddie, yes it does. However, it’s very biased towards Vanguard products so unless you want to invest in Vanguard only you may want to consider other brokers that are more flexible.
Thanks Bryan for making such great videos. i have a question.. if i use commsec to apply for my daughter using her TFN, what about HIN, should i apply HIN for her as well before registering for her? how do i go about doing that? thank you so much.
Bryan,
Love your content. Can you please do a video on Pearler Headstart? Would really appreciate it
I'll pit it on my list! Thank you for the support 😊
Can we request the dividends to be reinvested to avoid being paid out and having to lodge a tax return?
Unfortunately, you have to pay tax even if your dividend is automatically reinvested.
Great video, thanks. I wanted to know if I can hold the account even after they turn 18 keep it longer and transfer when they are 24? Coz my child is 14, I want to invest for atleast 10 years before transferring
Thanks Jay Vee. Yes, I believe you can. I don't think there is a rule that states you HAVE to transfer it at 18. It states, you CAN transfer after 18.
Bubble! Thank you for sharing your knowledge. I have 2 young kids and looking to start investing for them (don’t have much but got to start somewhere!). Is there a way to find out with ETF pays dividends? I would like to invest as a trustee for them as well as focus on capital growth rather than dividends. Thanks
Hi Jacyln, it's wonderful to hear you want to invest for your kids. They will thank you when they're older. The easiest way is to just google ETF you're searching for plus dividend yield. Eg. VAS dividend yield. And if something pops up with a %, you know they pay a dividend. Then you can on their official website and research more.
Hi Byran, do you know if you can invest in an informal trust through Pearler Micro using your childs TFN?
Hey Bryan, where or which platform can I buy VOO from?
Hey Jade, VOO is actually a US version of the S&P 500 so you'll need a broker that offer US stocks. For all US stocks, I'm currently using Moomoo who have a generous promo at the moment if you're interested: bit.ly/3PgUN6E
If you're interested in the Aussie version of the S&P 500 then you can look up IVV. Then you can use an Aussie broker like Stake to buy it. bit.ly/3L13UGm
Hi Bryan, thanks for your sharing your knowledge, I am loving all the content you post. Just weighing this option for my son. He has savings stored in a joint account I share with my wife. It is returning 5% interest a year. Considering the high marginal tax rate a child pays when earning over $416, is it really worth investing the money in a Trust account for minor? Or as long as you don't sell the shares (buy and hold for 10 years) do you not pay tax until it is time to cash out the shares?
Hey JP, that's a great question. Investing is all about weighing risks vs reward. You are correct, you won't be charged for capital gains until your shares are sold. So share price increases won't be taxed. However, you will be taxed on dividends (income) so if you go the investing route, you could consider high growth ETFs that don't any or minimum dividends. If you're only plan to invest a few thousand a yet, then I don't think it will go over the $416 threshold for a while. Another option would be to just invest for your son under your own name. However, the opportunity cost will be the shares will never really be 'his' and he will miss out on the feeling of owning shares and the curiosity that comes with it. Good luck mate. Wish you and your family well for the future 💙
@@BryanInvest , legend! That makes more sense to me now as a sound investment. You are right, I doubt I would be inputting more than a $1000 a year. It’s more of a holding account for birthday gifts from the family, so I’ll focus on high growth ETFs with low dividends to minimise income tax. Thanks again!
Hi Bryan, cheers for the Australian specific content. I want to invest for my two boys but I don’t want to hand them tens of thousands of dollars when they turn 18 because young boys are well… young boys. It’ll get spent on cars and beers defeating the purpose…. Is there anyway I can lock it up till they are 21?
Bubble 😊
Hi Dylan, I’ve had a look online on this topic and can’t see any clear answers. However, from the bits and pieces I read, it’s my understanding that the trust account is an option, not obligation, to hand over the account to your child at 18. There is no rule that states you have to hand over the account at 18. So you could choose to wait until 21. I would double check this with the broker you sign up with though. Wish you all the best to you and your boys 👍
Cheers fella
Buble mate. Question. In Spain when you put money into your child’s account it is considered a donation and it is subjected to taxes. Here in Australia. Do you have to pay taxes every time you transfer money to your children’s account?
Hi Fernando, good question! There is no gift tax in Australia so you won’t have to pay tax if you transfer to their account. However, please note Children pay a higher tax on income above $416. So just keep that in mind if you set up an investing account under their name.
Thanks for the advice and your quick response. I really enjoy and learn from you channel. Keep it up!
Bubbles!!! Interested in knowing what investment you have for your child/children mate…. 🧐
thanks
💙
Hi Bryan, what if my child is not an Australian resident? She has dual citizenship - Aus and UK. What impact would this have? Thank you.
Good question. As long as your child’s tax residency is Australia then it should be fine. You won’t be double taxed. If she was to move to the UK and switch residency then it may have an impact.
I think this article may help: community.ato.gov.au/s/question/a0J9s000000MdrN/p00184395
Bubble..Bryan is it the same for grandchildren, I want to set some up for my two grandkids, does it need to involve their parents tax returns or can I use mine? thx
Yes, I believe it’s the same for grandchildren. I don’t think you need to involve their parents.
www.commsec.com.au/products/minor-trust-accounts.html#:~:text=Whether%20you're%20a%20parent,on%20the%20right%20financial%20path.
@@BryanInvest Thank you for taking the time to respond, much appreciated, have a good day!
you speak too fast Bryan. I truly adore all information you provide
Haha, thank you. I will try to slow down in the future 😊
Is there a limit of how much per year I'm allowed to put into my kids brokerage account?
I don’t believe so. However, keep an eye on the dividends. If it goes above $416, you will have to pay more tax. Check out this article to learn more: www.ato.gov.au/individuals-and-families/investments-and-assets/investing-in-shares/owning-shares/children-s-share-investments
Really enjoying the videos. Any thoughts on any particular ETF’s for long time growth?
IVV
Great content mate! Bubble
Thank you mate! 🙌
Love all the info. I struggle to listen though as you talk very fast. 😊
I'm working on slowing down for the camera! Thanks for watching 😊
Click on the settings icon and you can slow the video down to a pace you can listen to. 😊 Not the case here, but often people waffle on with so much that I'm always speeding videos up to get to the purpose of the video. 😂
Bubble, Are we in a bubble at the moment? how does investing in a child with a max of $416 compare to distributing wealth from a family trust? Can you distribute wealth from a family trust to a child, and is that taxed at $416 or the minimum TFF ?
So are you supposed to use the parents tax file number or the childs tax file number?
Hi Bryan, great video. I am currently 15 and looking to invest, If my parent invests the money for me, are there fees involved in opening a commsec or another account
Edit bubble
Hi Mike, well done for looking at investing at 15! There won't be fees involved in opening the brokerage account itself. The fees that you need to keep an eye on are the brokerage fees (to buy and sell your shares) and any tax implications if you sell or receive dividends.
Thanks@@BryanInvest
If I apply TFN under my child's name, does it mean the child will be subject to normal personal income tax, not the higher rate when income is $416 above?
No, I believe they would still be subject to a high 66% rate if the income is between $417-$1,307.
www.ato.gov.au/rates/Tax-rates-if-you-re-under-18-years-old/
@@BryanInvest thanks I will have a look.
Hi Bryan, just tried signing up through a commsec minor trust account? There was no option for me to add my child’s TFN number only mine. Wouldn’t that mean I would still pay CGT when she turns 18?
Following! I would love to know more about it if you have any more updates 🙏🏼
Bubble, great video
Thank you mate 🫧
Can you open a Superannuation account for kids? (Prior to them starting work/having their first job)
Great question. I believe you can but should you is another question. I think this article is helpful: wealthconnexion.com.au/set-up-a-super-fund-for-your-kids/
What happens when child decide to sell shares when they turn 18? After it’s transferred under their name? Do they pay capital gains for the whole time?
They’ll pay capital gains from original cost basis. So yes, the capital gains obligation will be passed on to them.
Bubble, love your videos mate.
Hi I have 3 kids. A 3 year old and 2 2 year olds (twins) I want to invest on their behalf. And give to them when they turn 25 or so.
1. Can I open one minor account in all 3 of their names?
2. Will ill they have to pay any CGT when it gets transferred to them?
Thanks mate.
1. There’s no limit on how many children you can be trustee for but I think you do need to create multiple accounts with each name.
2. You won’t have to pay CGT when it gets transferred over but they will need to pay it from the original cost basis when they do eventually sell it.
Hope this helps. Good luck!
Hey Bryan, but when the children sell the ETFs any time after they turn 18 say when they are 24 will they be paying the marginal tax rate based on their income at that time ? Or do you think its more tax efficient to hold the shares/ ETFs under parents name and sell it and gift it to the child when it's the right time? Also are you certain transfering the ETFs or shares from the "informal tust" account to a child will not trigger a capital gain tax? Just asking this question as it's been some time since you made this video . Thank you so much for clarifying
Bubble. Great content
Thank you! 🫧
Just today I set up some minor accounts via pearla for my children. I used my own tax file number when it asked. Was I supposed to get them their own tax file number?
Do parents have to pay tax on Raiz kids when transferring to the child ?
Good question. I don’t believe so. If Raiz Kids is a minor trust account with your child’s name as the beneficiary then I believe you need to pay tax when transferring the shares over. Unless of course you sold some shares prior then you would need to pay CGT. Best to double check with a tax accountant.
Bubble - thanks Bryan! I'm a recent subscriber on your channel. You're doing a great work! My question: Can I invest on behalf of my children on the Stake platform?
Thank you! Welcome to the community. Unfortunately, Stake does not offer a minor trust account at this moment so no.
@@BryanInvest Thank you Bryan! What are some of the high growth companies or ETFs that pay minimal or no dividend? Also, could you kindly share some brokers/investing platforms that offer a minor trust account?
Bryan is there a way to slow down video. Its too fast for me when im trying to understand. Feels like i need the text transcribed to read it. 😂 Sorry but no, genuine question. 🙏
Haha, sorry I do speak quite fast. I'm trying to slow down for the camera in future videos. You can actually make the video slower on RUclips. Click the settings icon and reduce the 'playback speed' to about 0.75 or 0.5.
Bubble. Thankyou for this 😀
If I put my tfn in my child's minor trust account, can I still transfer to them without cgt at 18?
Vanguard also have minors account, is that same as Comsec & Selfwealth ?
Yes, it's similar. However, Vanguard is quite limited with their choices unless you only want to invest in Vanguard products.
@@BryanInvest yes, your are right. Thanks!
Bubble, Great information cheers
Bubble :) good info on tax
Thank you! 😃
You said $100 per month investing, but min buy is $500, so what, every 5 months you invest? And how do you know which one to buy in if you have several individual stocks? This way of investment is called dollar cost averaging??
Yes, when using a chess sponsored broker including the ones mentioned in the video, you need to buy a minimum of $500 every time you buy a new stock. After that, you can then buy in smaller increments like $100. Eg. If you want to buy stock A, you will need to invest $500 for the first buy then after you can invest $100 each time. If you want stock B, you will need to invest $500 again for the first time and so on. And yes, buying the same stock in regular intervals is known as dollar cost averaging.
@@BryanInvest hey thanks Brian I did not know that, so I guess only downside is your paying a broker fee ($10 for me with nabtrade) for a small buy($100)
@@fnqwaz5816 Yes $10 is way too high a fee for a $100 investment. You're basically starting off with a 10% loss.
Bubble. Wish I looked into this when my boys were younger. Oh well, never too late to start.
Absolutely! I'm assuming your boys are still relatively young so still have decades ahead of them. Never too late 😊
@@BryanInvest thanks Bryan, one child is 18 yr old, but my 14 yr old is keen on purchasing ETF shares for long term investment, pretty much I have encouraged him to purchase and forget with auto contributions and with our help until he has a part time job, which I’m encouraging also in 9-12 months time.😬
@@HelSpe-gq2jk That's so lovely to hear that you are educating them about investing at a relatively young age. I wish my parents taught me these things when I was younger. Your boys have decades ahead of them so if they start now and stay consistent, there's a high chance they will be millionaires one day.
Which would you use out of commsec and selfwealth? Bubble...
Cheers. Both great. I'd probably look at Selfwealth since they have lower fees. Commsec is awesome for researching stocks though.
This was so useful
Thank you!
I'm a fellow Perthian too I reckon we'd be friends
Hey Gary, nice to meet a fellow Perthian!
Come say hi if you see me around 👊
Bubble - still waiting for the ibkr review 😂
What about crypto account for kids in Australia?
Well done bubbles !
🫧🫧🫧
Bubble 👍
👊
Thank you. What about grandchildren? Is that seen differently?
No worries mate. I had a look in Commsec and it doesn’t mention you have to be parent. So yes, I believe you can create a minor account for anyone of that age whether you’re the parent, grandparent, uncle, aunt etc
@@BryanInvest thank you
Hello Bryan great video great explanation was wondering just started investing I've started a Raiz account for my son and myself is Raiz not very good or should I create a commsec account to start off? Thanks. /bubble :)
Hey mate, well done for investing for your son. He's going to really appreciate it when he grows up! Raiz isn't particularly bad but I find it's an online broker on training wheels. It's great for beginners who are too intimidated by regular online brokers. You are essentially investing in similar things in Raiz as you would if you used Commsec or any other online broker. The difference is you don't own the shares directly with Raiz so you have less flexibility like receiving dividends. Also, if I find their options are a bit too over diversified. Each option is made up of 8 ETFs/asset class. You can look at starting a Commsec or Selfwealth (cheaper fees) Minor Trust account for your son if you want to be more particular about what you want to invest in. On the other hand, if Raiz works for you then don't be pressured to change.
I have had RAIZ accounts for my kids for almost a year now, it's a little clunky with how to view the performance and pick your ETF's but the best thing about it is they don't charge fee's on the kids accounts and as far as I know...there is no requirement for a minor to have a TFN and declare anything to the ATO in regards to savings...which an investment account that you regularly deposit into is considered to be, otherwise why wouldn't they be required to have a TFN and pay tax/do a tax return for their everyday savings accounts and term deposit/trust accounts ??
Hi Brian,
Very good and informative VDO. I have started investing for my daughter who is 9 year old via my Vanguard Personal Account, investing for kids. But you talking about tax when I will transfer the investment to her name when she is 16 of ages. How many percent of tax I have to pay - my tax margin rate at the time???? Or should I change the kids investment to Comsec.
Looking forward to hear from you
Is the minor allowed to trade on the account or is the guardian only allowed to
Whoever has control of the account can trade on the account. I think it is a judgement call. If the minor is way too young then the trustee should be the one making the trades.
@@BryanInvest I had my mum make an account so I’m fine to log into it and trade on it? Also can you add different cards to buy and sell ?
Nice one mate
Cheers mate!
Bubble, great video
Bubble !!
Yeah!!! 👍👍👍
Hi, can you please make a video about how to use Bybit.
Bubble :) Hi Bryan, If I purchase long term growth stocks for my daughter, via a custodial account like mentioned in the video, (No dividends, purely growth stocks). would I still have to lodge a yearly tax return for her? I'm super confused about this.
Hey Kaycie! Well done for investing for your daughter. She’s going to be so grateful when she’s older. No, you don’t need to lodge a tax return for her in this case. Unless your daughter has a part time job where she has earned income over $416 or if you sold some of the growth stocks for a profit (capital gains tax). Wishing you all the best for you and your daughter ☺️
@BryanInvest hey mate there must be a more tax effective way to invest for kids 66% or even 47% is not beneficial for the compounding machine. Do you know of any other tax efficient ways. Maybe holding company, trust, nz foreign trust. This would help alot ?
Which broker is better? I've read that some are quite expensive
Commsec is the most powerful broker but Selfwealth is cheaper if you're after lower fees.
Hey Bryan can u pls do a Pearler tutorial vid? I’m still a bit confused with its features
Hey mate, yep this is on my list. Keep an eye out in the future 👀
BUBBLE ! 🎉
Cheers!
Bubble
Cheers mate 🫧
Wonderful video!! 👶🏻
Thanks Wendy 😊
bubble
Bubble :)
Cheers Duane 👊
Buy your kids Bitcoin, no tax consequence, easy to transfer and will outperform every other asset class.
That's an interesting strategy 😄
bubble :) just fyi!
Thanks legends! 💙💙
Bubble
Cheers 🫧
Bubble!! CMC markets also gives you the option to open Minor/Trust accounts.
Oh wow. Thanks for the info, Jas. This may be a better option than Commsec and SelfWealth given CMC’s zero brokerage on Aussie shares under $1000 per day. I may have to do more research and update! 😆
Bubble
This is awesome that you are sharing how people can start investing to get their kids financially ahead. Definitely the best way to build generational wealth.
Absolutely Jose. Thanks for stopping by 👊
BUBBLE. Just in time. I’ve been thinking about this for a few months now.
Yeah, a few people have asked me to do this video!
BUBBLE
#bubble
I've been wondering about getting my kids on investing but didn't know if it was possible, them being only 8 amd 9 years old. And you just gave me the answer. Cheers Brian. An awesome content once again. I gotta look onto this now. If you have more info or know how for dummies 😅 for this. I'm highly interested. Thanks again.
Hey Michael! Your kids are at a great age to start learning about money and investing. Like I said in the video, you could research some companies together and teach them that mindset from an early age. It will be fun for them too. Eg. If you invested in a S&P 500 ETF, they can claim they own parts of Apple, Google, Tesla etc 😄 there’s always something new to learn with investing. More videos coming soon mate.
@BryanInvest cheers mate. Can't wait to see more vids.
Thank you, Bryan! Good bubble information to know for my 3 months old daughter ☺️🫧
That's awesome Sarah! Congrats 🍼
BUBBLE 🫧
🧋
I want to go where all the bubbles goooooo 🫧🫧🫧🫧🫧🫧🫧🫧 but seriously Bryan, thank you very much. This will help our family a lot 😌
I love your energy! 👍👍👍👍👍
Good luck to you and your family 😊
Hi Brian,
Very good and informative VDO. I have started investing for my daughter who is 9 year old via my Vanguard Personal Account, investing for kids. But you talking about tax when I will transfer the investment to her name when she is 16 of ages. How many percent of tax I have to pay - my tax margin rate at the time???? Or should I change the kids investment to Comsec.
Looking forward to hear from you
Bubble
😊🫧
bubble
Bubble
BUBBLE
Hi Brian,
Very good and informative VDO. I have started investing for my daughter who is 9 year old via my Vanguard Personal Account, investing for kids. But you talking about tax when I will transfer the investment to her name when she is 16 of ages. How many percent of tax I have to pay - my tax margin rate at the time???? Or should I change the kids investment to Comsec.
Looking forward to hear from you
Hi Brian,
Very good and informative VDO. I have started investing for my daughter who is 9 year old via my Vanguard Personal Account, investing for kids. But you talking about tax when I will transfer the investment to her name when she is 16 of ages. How many percent of tax I have to pay - my tax margin rate at the time???? Or should I change the kids investment to Comsec.
Looking forward to hear from you
Hi mate, yes you may have to pay capital gains tax if you are transferring over your shares to you daughter at a later date. This will be taxed at your marginal tax. You can avoid this by setting up a trust account with commsec or any other broker that allows it. Commsec recently changed their brokerage to $5 for under 1k to buy shares so could be good option.
Here’s a useful article if you want to know more about gifting your shares:
www.ato.gov.au/Individuals/Investments-and-assets/Investing-in-shares/Disposing-of-shares/
Bubble
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