savings for teenagers
- Thread starter vblanche
- Start date
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Hi,
Good question.
In general, teenagers cannot invest by themselves, so it's up to their parents to invest for them. I would recommend investing in ETFs for them and educating them on the process.
Good question.
In general, teenagers cannot invest by themselves, so it's up to their parents to invest for them. I would recommend investing in ETFs for them and educating them on the process.
Thanks.
I guess, at the end of the day, there is no reason to use the money - we want to invest, save or something else for them - into financial products so called "for teenagers', is there? I mean, we should invest this money into something safe and 'stable' over the long years, right? I guess people can be interested by the fact that the account is in their names...but does it change anything?
Thanks
I guess, at the end of the day, there is no reason to use the money - we want to invest, save or something else for them - into financial products so called "for teenagers', is there? I mean, we should invest this money into something safe and 'stable' over the long years, right? I guess people can be interested by the fact that the account is in their names...but does it change anything?
Thanks
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Max
Active member
I don't have any separate savings for my kids.
Max
Active member
Correct, I don't have any savings specifically for my kids. All my savings are invested in ETFs.
It would feel better for me if I could invest in the name of my child already. But options for investing in the name of my child are sub-par. And in any case, we are liable for this money until majority, so I don't believe it makes much difference.
I don't have kids, so this is a theory based answer
I would treat kids as part of my overall investment strategy. This means to budget the expenses of the kids as part of total family expenses. The available investment amount I would invest according to the needs of me and my partner.
As part of the family expenses I would reserve a (not too large) amount that the kids are free to invest in whatever they want. Of course, as parent I would teach them about longterm investments (ETF, large stocks, bonds, ...) short term investements (highly volatile stocks, crypto, ...) and try to have then invest in the long term investments. But if they don't follow you advise and they lose the money, If it's lost.
That's a fair point to try to involve them and give them a chance to do it their way even if they lose. But I would probably only do that on half of the contributions maybe so then have a comparison point. And the question becomes: at what point would we ask from our children?
Very good point. Having a kids portfolio where they are allowed to invest half the cash and you invest the other half will have them see the direct comparison.
I don't understand what you mean. Ask what from the children?
At what age would you ask children to choose their own investment? If I ask my son, he will invest in Playmobil
Hugo Falcao
New member
I have been using the child portfolio from True Wealth.At the moment the management fee is 0.12% and average TER around 0.10%, giving a total of 0.22%. I can leave with that, and as the 3a Pillar has 0%management fees (I pay only TER), every deposit on my 3a will reduce the % of management fee of the kids.
The children are the owners of the portfolio and at 18 yo, the portfolio management goes to them.
The main difference for other „child investing“ solutions is that the money is mine, and then i would have to transfer the investment to them (meaning, selling the assets and them buying the assets) with the correspondent tranding expenses.
The children are the owners of the portfolio and at 18 yo, the portfolio management goes to them.
The main difference for other „child investing“ solutions is that the money is mine, and then i would have to transfer the investment to them (meaning, selling the assets and them buying the assets) with the correspondent tranding expenses.
May I ask, how do you get to a management fee of 0.12%, looking at the True Wealth fee schedule the absolute minimum is 0.25% (with more than 8M in assets).
Hugo Falcao
New member
I would love to tell you that I have a lot more than 8M, but that is not the case
The fee is reduced from 0.50% due to the 3aPillar assets I transferred last year from SwissLife. So, since the 3aPilllar assets do not have a management fee (0.0%), the overall fees is a reduced value from the 0.50%.
To be completely accurate, the 0.12% refer to the total amount deposited, not to the child's portfolio amount. So, it is basically a weighted average (3aP * 0.0% + Childs portfolio * 0.5%) / (3aP + Child Portf)
You can simulate several investment values on each of the 3 account types here:
Our fees at a glance
True Wealth – Switzerland's leading online wealth manager. Pillar 3a and child portfolios included.
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So, you child portfolio is at 0.50%, right?
Hugo Falcao
New member
That is correct, Batiste. I did not want to create a misunderstanding.
I use the advantage of the "0%" fees on the 3aP to reduce the overall fees , but the amount on the Childs portfolios has indeed the 0.50% management fee. The TER's are on top of that, and are around 0.10% at the moment.
As a comparison, I am paying 0.35% (including TER) my VIAC 3aP, so i found this joint solution very efffective.
No problem, I just wanted to see if I was missing something