As a parent, grandparent, or caring family member, you want to give the children in your life every advantage possible. One of the most valuable gifts you can provide is a strong financial foundation that will serve them throughout their lives. At Morgans, we understand the importance of family financial planning and offer solutions to help you invest for your children's future.

By Kylie Harding, Wealth Manager at Morgans Financial

WHAT IS TRUST-BASED INVESTING FOR MINORS?

Trust-based investing for children allows you to hold assets "on behalf of" or "in trust" for a minor until they reach 18 years old. This approach gives you the flexibility to build a portfolio that can grow over time, providing your child with a significant financial advantage when they are ready to take control of their own affairs.

Whether you are a parent looking to secure your child's path, a grandparent wanting to leave a lasting legacy, or an aunt or uncle who wants to contribute to a young person's success, this investment approach helps children get started on the right financial path from an early age.

HOW TO INVEST FOR YOUR CHILDREN'S FUTURE: THE PROCESS

Setting up investments for minors through Morgans is straightforward and professional. Our experienced team, led by Principal Kylie Harding with over 30 years of experience in financial services, will guide you through the process of buying and selling shares or established managed funds.

Opening The Account

Any adult over 18 can establish trust-based investments for a child. You maintain full control and decision-making authority until the child reaches 18. Multiple children can be included, with separate arrangements for each to ensure clarity.

Investment Management

We provide access to our full range of investment products including Australian shares, international shares, ETFs, and managed portfolios. Our Wealth+ managed portfolio service offers professional advice and ongoing portfolio management, including regular reviews and rebalancing to ensure the portfolio remains aligned with long-term goals.

Transition To Adulthood

When the child turns 18, you can choose to transfer the investments to their own name. Our team will guide you through this process and any associated tax considerations to ensure a smooth handover.

"Starting early gives investments time to grow, turning small contributions into long-term opportunities."

THE BENEFITS OF STARTING EARLY

1. The Power of Compound Growth

Starting early gives investments more time to grow. Even modest regular contributions can build substantial wealth over nearly two decades thanks to the power of compounding returns.

2. Financial Education Opportunities

Involving children in their investment journey helps develop financial literacy from a young age. This hands-on education builds positive money habits that will serve them throughout their lives.

3. Flexibility for Multiple Children

There is no limit to how many trust arrangements you can establish. You can manage separate investments for multiple children simultaneously, each with its own tailored approach.

4. Professional Management

Through our Wealth+ service, your child's investments receive the same professional attention as our high-net-worth adult clients, including quarterly reviews and strategic rebalancing.

"There is no set amount, but consistency is key."

INVESTMENT OPTIONS FOR YOUNG PEOPLE

At Morgans, we offer a comprehensive range of stockbroking and investment advisory services suitable for long-term wealth building:

• Australian Shares: Build a foundation with quality ASX-listed companies.
• International Shares: Access global growth opportunities in markets like the US and Europe.
• Exchange Traded Funds (ETFs): Achieve instant diversification across markets and sectors.
• Managed Portfolios: Professional portfolio management through our Wealth+ service.
• Fixed Interest: Add stability and income generation to the portfolio.

TAX CONSIDERATIONS AND PROFESSIONAL GUIDANCE

Investing for children can have tax implications that vary depending on your specific circumstances, particularly regarding the "taxation of minor" rules in Australia.

Our team provides comprehensive advice regarding:

• Tax-effective investment structures.
• Income distribution strategies.
• Capital gains planning.
• Early wealth transfer planning for when the child reaches adulthood.

We strongly recommend discussing your specific situation with our financial advisers to ensure you are making the most tax-effective decisions for your family's circumstances.

INVESTMENT ADVICE WITH HEART

At Morgans, we believe in "investment advice with heart." This philosophy is particularly important when planning for the next generation. We understand that these investments represent more than just financial returns, they represent your hopes and dreams for the young people you care about.

Our team brings empathy and understanding to every client relationship, ensuring that your family's unique circumstances and values are reflected in the wealth management strategy we develop together.

"The greatest investment you can make is in the future of the people you love."

GETTING STARTED: YOUR NEXT STEPS

Ready to give a child in your life a financial head start? Here is how to begin:

• Initial Consultation: Contact our office for a discussion about your goals and the child's future needs.
• Strategy Development: We will work with you to create an appropriate investment strategy based on the time horizon and risk tolerance.
• Account Setup: Our team handles the paperwork and administrative requirements to get the account active.
• Ongoing Management: Regular reviews ensure the investments stay on track to meet long-term objectives.

TAKE ACTION TODAY

The best time to start to invest for your children's future is now. Every day you wait is a day of potential compound growth lost. Contact us today to discuss how we can help you build a brighter financial future for the children in your life.

Remember, investing for children is not just about building wealth, it's about building character, teaching valuable life lessons, and creating opportunities that will last a lifetime. Let us help you give the gift of a solid financial foundation for the future.

Crucial Takeaways

• START EARLY: Compound growth builds substantial wealth over 18+ years.
• FLEXIBLE STRUCTURES: Trust-based investing allows parents to maintain control of the portfolio.
• DIVERSE OPTIONS: Portfolios can include Australian and international shares, ETFs, and managed portfolios tailored to long-term goals.
• FINANCIAL LITERACY: Starting early to teach children positive, lifelong money habits.
• PROFESSIONAL OVERSIGHT: Services such as the Morgans Financial management and rebalance.

Kylie Harding is an Investment Adviser who believes in free access to information about building financial literacy at every stage in life. Contact Kylie today on kylie.harding@morgans.com.au or 02 9998 4206.

Morgans Financial | Waratah Court, Shop 8, 12-14 Waratah Street, Mona Vale | 02 9998 4200 | morgans.com.au/branch/Mona-Vale

Words: Kylie Harding