Help - How do I invest my childrens inheritence money

[Admin]

Hi All, both of my kids, Caitlin (27 years old) and Lachlan (24 years old), have received $50,000 each from my mother in law's estate but I am so scared how to advise them on what to do. They both want to invest at the best return/risk ratio to get the best out of the money to buy their own nome in years to come. I spoke to the bank and all they offered was Term Deposit at around the low 4% when superannuation investments are getting around 8% by highly respected companies. Both of my kids are working full time.

 

So any advice would be helpful as I am very confused on how to best help them. (PM me if you like to keep it private)

 

I acknowlege that any ideas are not financial advice, I just want some advice to steer me a direction that might help or help to educate me as I know nothing other than a bank

[gareth lacey]

the rules on super have relaxed a bit in recent years , my advise ,put into their super  i think from memory 30k is a 1 off a year

 

[Grumpy Old Nasho]

Make it low risk for a start. And don't be fooled by superannuation's 8%, there's too many takers. Also superannuation needs to be monitored for fluctuations and volatility which may not be fully understood by young adults. As an ordinary worker, I lost ten years of gains in the 2008 crash, I was back to square one. I couldn't draw the money out because I had not yet retired, so I moved it to the Cash portfolio and left it there. Cash is like term deposits, and you don't lose any of it.

 

I also had bank accounts and bank term deposits which I salary sacrificed into, a small amount each week. This built up and the returns started to overtake my Super returns. In the end Super was insignificant and my Bank account strategy paid off, beating my Super by hundreds of thousands of dollars, even after paying tax on my earnings. After retirement I was in a position to pay cash for a residential property to max $250k, with funds left over. And I didn't start early, I started late in the day.

 

There was no bank fees, just continuous interest three months at a time, heaps of it, it left my Super in it's dust, regardless of what my Super portfolios were.

 

 

 

 

 

 

 

Edited 2 minutes ago by Grumpy Old Nasho