1 00:00:00,360 --> 00:00:00,960 Speaker 1: Start here. 2 00:00:01,520 --> 00:00:05,040 Speaker 2: Investing for your grandchildren and the kids that we love 3 00:00:05,200 --> 00:00:24,720 Speaker 2: so much, a gift idea that lasts a lifetime. Hi everyone, 4 00:00:24,760 --> 00:00:27,400 Speaker 2: and welcome back to start Here, the very special mini 5 00:00:27,440 --> 00:00:30,400 Speaker 2: series within Sugar Mama's Fireplay, where I answer your real 6 00:00:30,440 --> 00:00:34,920 Speaker 2: life money questions with practical, empowering steps to help you 7 00:00:35,280 --> 00:00:40,279 Speaker 2: finally get started. Today's question comes from a proud grandmother 8 00:00:40,320 --> 00:00:43,960 Speaker 2: and I absolutely loved reading this one. She wrote, Hi, Canna, 9 00:00:44,080 --> 00:00:46,040 Speaker 2: I'm a proud grandmother of a three year old, a 10 00:00:46,080 --> 00:00:49,599 Speaker 2: six year old and twins on the way. Everything is 11 00:00:49,720 --> 00:00:51,959 Speaker 2: so expensive and I'd love to be able to give 12 00:00:52,000 --> 00:00:54,960 Speaker 2: them a bit of a head start. Can you help 13 00:00:55,000 --> 00:00:58,200 Speaker 2: me get started with investing for them? I was thinking 14 00:00:58,200 --> 00:01:00,680 Speaker 2: of doing something like your one thousand dollars project, where 15 00:01:00,760 --> 00:01:03,720 Speaker 2: I invest one thousand dollars for each of them. But 16 00:01:04,040 --> 00:01:07,119 Speaker 2: what do I need to do to get started? 17 00:01:07,600 --> 00:01:10,240 Speaker 1: All right? Firstly, can I just say that this is such. 18 00:01:10,000 --> 00:01:13,840 Speaker 2: A generous and thoughtful question, and you're not alone. I 19 00:01:13,920 --> 00:01:17,720 Speaker 2: was actually on Channel nine's The Today Show talking about 20 00:01:17,720 --> 00:01:21,160 Speaker 2: this exact trend, and there was also a brilliant article 21 00:01:21,360 --> 00:01:25,080 Speaker 2: in the Australian. I think it was about grandparents increasingly 22 00:01:25,200 --> 00:01:30,120 Speaker 2: choosing investment gifts over the physical plastic toys, particularly around 23 00:01:30,240 --> 00:01:34,120 Speaker 2: Christmas time and even birthdays. And honestly, I think this 24 00:01:34,160 --> 00:01:36,440 Speaker 2: is one of the most powerful and meaningful gifts you 25 00:01:36,480 --> 00:01:39,640 Speaker 2: can give any child. And it doesn't just have to 26 00:01:39,680 --> 00:01:42,880 Speaker 2: be for a grandchild. It could be for your own child, 27 00:01:42,959 --> 00:01:45,480 Speaker 2: It could be for a niece, a nephew, or even 28 00:01:45,480 --> 00:01:47,240 Speaker 2: more like what I did, I did this for my 29 00:01:47,319 --> 00:01:51,040 Speaker 2: own god daughter, Lotti, and I did this when she 30 00:01:51,120 --> 00:01:53,640 Speaker 2: was actually christened and I was formally made her godmother. 31 00:01:53,720 --> 00:01:55,120 Speaker 1: Was a really special, proud moment. 32 00:01:55,720 --> 00:01:58,919 Speaker 2: And when you do this, you're actually giving them something 33 00:01:59,000 --> 00:02:02,360 Speaker 2: really valuable, but something also really priceless, and that is 34 00:02:02,400 --> 00:02:06,040 Speaker 2: the belief in their future and time. And when we 35 00:02:06,200 --> 00:02:12,560 Speaker 2: combine these two things together, it's incredibly powerful. So to start, 36 00:02:12,760 --> 00:02:16,639 Speaker 2: let's talk about why so many grandparents are actually doing 37 00:02:16,680 --> 00:02:22,079 Speaker 2: this and why it's actually becoming increasingly popular now. Obviously, 38 00:02:22,160 --> 00:02:27,800 Speaker 2: as we all know, everything is so expensive right now, housing, education, travel, 39 00:02:28,160 --> 00:02:30,639 Speaker 2: even if you're just starting out as an is your 40 00:02:30,639 --> 00:02:34,280 Speaker 2: adult life. Many grandparents can see that, and they can 41 00:02:34,320 --> 00:02:36,040 Speaker 2: see that their grandchildren are going to need a little 42 00:02:36,080 --> 00:02:40,400 Speaker 2: bit more support than perhaps the previous generations. But this 43 00:02:40,600 --> 00:02:44,360 Speaker 2: is definitely not about spoiling kids or handing the money 44 00:02:44,360 --> 00:02:47,639 Speaker 2: on a silver platter. It's about giving them time, it's 45 00:02:47,639 --> 00:02:50,480 Speaker 2: about giving them opportunity, and it's about giving them some 46 00:02:50,600 --> 00:02:54,560 Speaker 2: confidence and faith. And when you're investing for your grandchild 47 00:02:54,680 --> 00:02:56,920 Speaker 2: or for any child, it's a way of saying, I 48 00:02:57,040 --> 00:03:00,480 Speaker 2: believe in your future, even if you're not older yet 49 00:03:00,520 --> 00:03:03,880 Speaker 2: to really understand that. And there are so many powerful 50 00:03:03,919 --> 00:03:07,280 Speaker 2: benefits for investing for children. Obviously there's the financial one 51 00:03:07,280 --> 00:03:11,040 Speaker 2: because you've got compounding interest working over decades, which is 52 00:03:11,200 --> 00:03:15,560 Speaker 2: incredibly powerful and exciting. Then of course there's the environmental benefits, 53 00:03:15,760 --> 00:03:20,160 Speaker 2: you know, less plastic toys, less landfill and wastage, and 54 00:03:20,200 --> 00:03:23,640 Speaker 2: more intentional gifting. And then there's the emotional one. You know, 55 00:03:23,720 --> 00:03:27,679 Speaker 2: this is a really beautiful bond across generations. And then 56 00:03:27,720 --> 00:03:30,960 Speaker 2: there's the educational side, you know, financial literacy. It really 57 00:03:31,000 --> 00:03:34,160 Speaker 2: does open up the door to teach and talk about 58 00:03:34,320 --> 00:03:36,920 Speaker 2: money and the skills needed to be able to create 59 00:03:36,960 --> 00:03:40,360 Speaker 2: financial freedom. So this is not just about money, it's 60 00:03:40,400 --> 00:03:45,480 Speaker 2: actually about a legacy. Now when it comes to that money, 61 00:03:45,520 --> 00:03:46,920 Speaker 2: at the end of the day, we know when they 62 00:03:47,040 --> 00:03:50,680 Speaker 2: turn eighteen or say turn age twenty one, what could 63 00:03:50,680 --> 00:03:54,240 Speaker 2: this money be used for that day, that one special day. 64 00:03:54,520 --> 00:03:56,600 Speaker 2: And this is where it gets really exciting because you 65 00:03:56,600 --> 00:03:58,800 Speaker 2: can see the potential as to what you could be 66 00:03:59,280 --> 00:04:03,080 Speaker 2: handing over. You know, when people here investing for kids, 67 00:04:03,120 --> 00:04:05,160 Speaker 2: they sometimes think it's only for one thing, and that 68 00:04:05,320 --> 00:04:05,600 Speaker 2: is like. 69 00:04:05,560 --> 00:04:06,800 Speaker 1: A deposit on a home. 70 00:04:07,120 --> 00:04:09,880 Speaker 2: But the thing is, the beauty of investing EARLI is 71 00:04:10,040 --> 00:04:13,360 Speaker 2: really the flexibility and the choice. You know, this money 72 00:04:13,360 --> 00:04:17,240 Speaker 2: could help fund educational expenses like additional training or maybe 73 00:04:17,279 --> 00:04:21,320 Speaker 2: even a university degree or masters. It could help pay 74 00:04:21,400 --> 00:04:24,920 Speaker 2: for travel and adventure and all those beautiful life experiences 75 00:04:24,960 --> 00:04:28,520 Speaker 2: that add so much richness to our lives, particularly young adults. 76 00:04:29,040 --> 00:04:31,600 Speaker 2: It could also help fund starting up a small business. 77 00:04:32,240 --> 00:04:34,640 Speaker 2: It could help pay for a first car, or maybe 78 00:04:34,680 --> 00:04:37,880 Speaker 2: even help the rental bond if they're moving out of home, 79 00:04:38,320 --> 00:04:40,960 Speaker 2: and of course yes it might possibly be if you 80 00:04:41,000 --> 00:04:43,760 Speaker 2: invest wisely over a long period of time, this could 81 00:04:43,760 --> 00:04:48,159 Speaker 2: be a future property deposit. And because children have time 82 00:04:48,200 --> 00:04:50,680 Speaker 2: on their side, the money can actually be invested a 83 00:04:50,760 --> 00:04:54,440 Speaker 2: lot more aggressively early on, giving it the biggest and 84 00:04:54,520 --> 00:04:58,919 Speaker 2: best opportunity to grow. And time is one of the 85 00:04:58,960 --> 00:05:03,400 Speaker 2: biggest gifts right here that children have and grandchildren particularly 86 00:05:03,640 --> 00:05:06,120 Speaker 2: have got plenty of it, particularly if you're thinking of 87 00:05:06,160 --> 00:05:09,080 Speaker 2: holding onto this money until they turn eighteen or twenty one. 88 00:05:09,960 --> 00:05:13,120 Speaker 2: So let's now move on to the practical steps of 89 00:05:13,520 --> 00:05:17,320 Speaker 2: investing for your grandchildren or pretty much any child. So 90 00:05:17,360 --> 00:05:21,120 Speaker 2: the first step is choosing the right investment structure. Now 91 00:05:21,200 --> 00:05:23,480 Speaker 2: this is where we need to get really practical and like, 92 00:05:23,560 --> 00:05:25,920 Speaker 2: how do you actually do this? Well, the first thing 93 00:05:25,960 --> 00:05:29,200 Speaker 2: is choosing an investment platform that actually allows you to 94 00:05:29,240 --> 00:05:33,479 Speaker 2: invest for children, So not product advice at all, but 95 00:05:33,560 --> 00:05:35,560 Speaker 2: a starting place for you to do your own research. 96 00:05:35,880 --> 00:05:40,000 Speaker 2: So stockpot offer this, com Sec Vanguard as well, and 97 00:05:40,080 --> 00:05:43,040 Speaker 2: I think believe Beta Shares just a few examples which 98 00:05:43,040 --> 00:05:45,960 Speaker 2: allow you to open up an account as trustee for 99 00:05:46,120 --> 00:05:49,080 Speaker 2: the child or as what some of them call a 100 00:05:49,120 --> 00:05:52,719 Speaker 2: minor trust account. So you need to look at the 101 00:05:52,720 --> 00:05:53,960 Speaker 2: way that it's set up, and you want to make 102 00:05:53,960 --> 00:05:56,200 Speaker 2: sure that you set it up this particular way if 103 00:05:56,240 --> 00:05:58,480 Speaker 2: you want to be able to give to them when 104 00:05:58,480 --> 00:06:01,960 Speaker 2: they turn eighteen with the opportunity to potentially minimize capital 105 00:06:01,960 --> 00:06:04,720 Speaker 2: gains tax. So when it's written as trustee, it would 106 00:06:04,760 --> 00:06:08,000 Speaker 2: be you know your name, say Canna Campbell as trustee 107 00:06:08,360 --> 00:06:10,400 Speaker 2: for example, for Rocko my son. 108 00:06:11,040 --> 00:06:12,560 Speaker 1: So the structure works in. 109 00:06:12,560 --> 00:06:15,720 Speaker 2: Very simple terms. You know you or is the grandparent, 110 00:06:15,839 --> 00:06:19,680 Speaker 2: You control the account, you control the investment decisions, and 111 00:06:19,720 --> 00:06:24,320 Speaker 2: the investments are held for the child's benefit, not for yours. However, 112 00:06:24,600 --> 00:06:26,599 Speaker 2: when you set it up like this, the income is 113 00:06:26,680 --> 00:06:30,919 Speaker 2: taxed at your marginal tax rate, and when the child 114 00:06:30,960 --> 00:06:34,520 Speaker 2: turns eighteen, the investments can then be transferred to them 115 00:06:34,520 --> 00:06:38,560 Speaker 2: without triggering capital gains tax. Now, I have had some 116 00:06:38,640 --> 00:06:40,760 Speaker 2: clients do this for their children, and their children actually 117 00:06:40,760 --> 00:06:43,120 Speaker 2: ask them to keep holding on until age twenty one 118 00:06:43,279 --> 00:06:45,720 Speaker 2: because they didn't feel like they were ready and mature 119 00:06:45,839 --> 00:06:49,119 Speaker 2: enough to handle their new investment portfolios. So you don't 120 00:06:49,160 --> 00:06:51,880 Speaker 2: have to necessarily turn it over at age eighteen, but 121 00:06:52,080 --> 00:06:53,760 Speaker 2: you just need to be aware of the fact that 122 00:06:53,760 --> 00:06:56,400 Speaker 2: when if done it in this structure correctly, you are 123 00:06:56,880 --> 00:06:59,719 Speaker 2: minimizing triggering capital gain tax. But of course, when in doubt, 124 00:06:59,720 --> 00:07:03,080 Speaker 2: al go and speak to your accountant. And it's very clean, 125 00:07:03,360 --> 00:07:05,440 Speaker 2: simple structure for the long term when it comes to 126 00:07:05,480 --> 00:07:08,599 Speaker 2: investing in kids, and for the record, that is exactly 127 00:07:08,640 --> 00:07:10,840 Speaker 2: how I have invested for each of my three children. 128 00:07:10,880 --> 00:07:13,920 Speaker 2: It is set up as Cannon Campbell as trustee for Apple, 129 00:07:14,200 --> 00:07:17,720 Speaker 2: Canna Campbell as trustee for Tiger, Tilly Cannon Campbell. 130 00:07:17,440 --> 00:07:18,800 Speaker 1: As trustee for Rocco. 131 00:07:19,240 --> 00:07:21,760 Speaker 2: You know, it's a long term structure that just for 132 00:07:21,880 --> 00:07:24,320 Speaker 2: me suits my needs. But there are other options to 133 00:07:24,320 --> 00:07:26,800 Speaker 2: get advice and there are other app platforms that offer 134 00:07:26,960 --> 00:07:29,760 Speaker 2: similar setups. So the key is asking, you know, can 135 00:07:29,800 --> 00:07:32,120 Speaker 2: I invest as a trustee for my child and what 136 00:07:32,240 --> 00:07:34,480 Speaker 2: happens at age eighteen? And that should help you narrow 137 00:07:34,480 --> 00:07:38,600 Speaker 2: down which is the best investment platform for the child. 138 00:07:38,840 --> 00:07:42,160 Speaker 2: The next step is choosing a long term investment mix. 139 00:07:42,840 --> 00:07:45,760 Speaker 2: So this is really about your investment choice because this 140 00:07:45,960 --> 00:07:49,080 Speaker 2: is a long term investment strategy. We're talking fifteen to 141 00:07:49,120 --> 00:07:52,360 Speaker 2: maybe even twenty years. You know, the general rule of thumb, 142 00:07:52,440 --> 00:07:55,080 Speaker 2: or the general guidance is to focus on high growth 143 00:07:55,080 --> 00:07:59,920 Speaker 2: assets such as Australian shares, international shares and listed property. 144 00:08:00,480 --> 00:08:03,280 Speaker 2: And yes, these assets are volatile in the short to 145 00:08:03,360 --> 00:08:06,760 Speaker 2: medium term. You know, markets naturally and normally go up 146 00:08:06,800 --> 00:08:09,640 Speaker 2: and down, and there are going to be headlines, there 147 00:08:09,640 --> 00:08:11,760 Speaker 2: are going to be corrections, there are going to be crashes, 148 00:08:11,840 --> 00:08:14,360 Speaker 2: but you need to keep focus on the big picture, 149 00:08:14,400 --> 00:08:16,320 Speaker 2: which is the long term picture. So try not to 150 00:08:16,320 --> 00:08:17,960 Speaker 2: get caught up in the noise and try not to 151 00:08:18,000 --> 00:08:21,120 Speaker 2: react to the noise. But you know, over long periods 152 00:08:21,120 --> 00:08:24,480 Speaker 2: of time, growth assets like the ones I've just mentioned 153 00:08:24,720 --> 00:08:29,960 Speaker 2: have historically delivered far more superior outcomes. And this is 154 00:08:30,000 --> 00:08:34,840 Speaker 2: where ETFs and listed investment companies are a brilliant tool 155 00:08:35,400 --> 00:08:38,199 Speaker 2: investment tool for you to seriously consider when you're looking 156 00:08:38,240 --> 00:08:39,800 Speaker 2: at your money that you've got for them and where 157 00:08:39,840 --> 00:08:41,880 Speaker 2: you want to invest. Because an ETF and a listed 158 00:08:41,920 --> 00:08:46,200 Speaker 2: investment company provides instant diversification, you've also got exposure across 159 00:08:46,280 --> 00:08:49,640 Speaker 2: you say, hundreds of companies and different sectors and industries 160 00:08:49,640 --> 00:08:53,240 Speaker 2: and sometimes even different countries. It's also, of course very 161 00:08:53,280 --> 00:08:56,240 Speaker 2: cost effective when you think about all the investment decisions 162 00:08:56,240 --> 00:08:58,520 Speaker 2: they're doing for you and all the admin behind the scenes, 163 00:08:58,559 --> 00:09:01,360 Speaker 2: and it makes it a lot easier to manage, particularly 164 00:09:01,400 --> 00:09:03,400 Speaker 2: when you take into consideration you've got to declare this 165 00:09:03,920 --> 00:09:06,600 Speaker 2: in your income tax. And just so you know, when 166 00:09:06,600 --> 00:09:09,079 Speaker 2: you're looking at these different ETFs and listed investment companies, 167 00:09:09,120 --> 00:09:11,960 Speaker 2: you don't need dozens of them. You may even just 168 00:09:12,000 --> 00:09:12,760 Speaker 2: need one. 169 00:09:13,080 --> 00:09:14,120 Speaker 1: Or just a couple. 170 00:09:14,480 --> 00:09:16,360 Speaker 2: You just need to make sure that whatever you decide 171 00:09:16,400 --> 00:09:19,040 Speaker 2: to do, you've done it thoughtfully and you're looking at 172 00:09:19,080 --> 00:09:23,120 Speaker 2: a long term approach and Most importantly, if you're looking 173 00:09:23,160 --> 00:09:25,960 Speaker 2: at doing this for your children or grandchildren, please know 174 00:09:26,200 --> 00:09:30,520 Speaker 2: this is a long term buy and hold strategy. You're 175 00:09:30,559 --> 00:09:34,280 Speaker 2: not looking to trade for your grandchildren. You're not looking 176 00:09:34,320 --> 00:09:36,800 Speaker 2: at tinkering the portfolio. 177 00:09:36,320 --> 00:09:37,000 Speaker 1: Of you're bored. 178 00:09:37,400 --> 00:09:42,800 Speaker 2: You're letting compounding growth and interest and reinvestment do the 179 00:09:42,960 --> 00:09:47,720 Speaker 2: heavy lifting for you and the child. So very much, 180 00:09:47,880 --> 00:09:52,400 Speaker 2: set and forget, walk away, and let compounding interest do 181 00:09:52,520 --> 00:09:53,080 Speaker 2: its magic. 182 00:09:53,200 --> 00:09:53,400 Speaker 1: View. 183 00:09:54,080 --> 00:09:57,000 Speaker 2: The next step, step three is to turn on the 184 00:09:57,000 --> 00:09:59,760 Speaker 2: dividend reinvestment plan. Now, this is one of the most 185 00:10:00,040 --> 00:10:03,720 Speaker 2: hotant steps and one that so many people forget. It's 186 00:10:03,880 --> 00:10:08,720 Speaker 2: turning on the dividend reinvestment options. This means that any 187 00:10:08,880 --> 00:10:13,560 Speaker 2: income like divit ends from the portfolio is automatically reinvested 188 00:10:13,720 --> 00:10:18,560 Speaker 2: back into the portfolio, which helps obviously accelerate the compounding effects. 189 00:10:18,559 --> 00:10:21,600 Speaker 2: And it means that you will have more units in 190 00:10:21,679 --> 00:10:25,319 Speaker 2: the portfolio because instead of taking that dividend and spending it, 191 00:10:25,440 --> 00:10:28,360 Speaker 2: you're actually buying more shares. And this is really where 192 00:10:28,360 --> 00:10:30,400 Speaker 2: the magic happens. You know, when kids are young, they 193 00:10:30,400 --> 00:10:33,520 Speaker 2: don't really need that income. You know, their living expenses 194 00:10:33,520 --> 00:10:36,320 Speaker 2: are typically covered for by their parents, So this is 195 00:10:36,400 --> 00:10:39,200 Speaker 2: a really good way of just ramping up the portfolio 196 00:10:39,280 --> 00:10:42,160 Speaker 2: and reinvest everything. You know, this is the fuel for growth. 197 00:10:42,200 --> 00:10:44,640 Speaker 2: And this is exactly how the thousand dollars project works. 198 00:10:44,640 --> 00:10:48,160 Speaker 2: It's all about long term buy and hold, reinvest everything 199 00:10:48,160 --> 00:10:52,160 Speaker 2: and consistently add when you can. And yes, all of 200 00:10:52,200 --> 00:10:55,760 Speaker 2: my children's investment portfolios, all the dividends are automatically reinvested. 201 00:10:55,800 --> 00:10:58,720 Speaker 2: I've ticked that box, and same with my goddaughter as well. 202 00:10:59,520 --> 00:11:02,319 Speaker 2: Next step step forward is to make it a tradition. Now, 203 00:11:02,360 --> 00:11:04,760 Speaker 2: this is the beautiful part and the part that I 204 00:11:04,800 --> 00:11:08,840 Speaker 2: think is so empowering. Instead of just making this a 205 00:11:08,920 --> 00:11:13,160 Speaker 2: once off event, just this one Christmas, maybe talk about 206 00:11:13,200 --> 00:11:16,640 Speaker 2: this becoming a family tradition. For example, adding money every 207 00:11:16,679 --> 00:11:20,080 Speaker 2: single Christmas, not just this coming Christmas or next Christmas, 208 00:11:20,360 --> 00:11:23,400 Speaker 2: but do it every single Christmas or perhaps every single Birthday. 209 00:11:23,880 --> 00:11:27,280 Speaker 2: Even encouraging other family members if they want to and 210 00:11:27,320 --> 00:11:31,120 Speaker 2: if they can comfortably afford to contribute to instead of buying, 211 00:11:31,160 --> 00:11:34,080 Speaker 2: like another toy that often gets forgotten about. You know, 212 00:11:34,120 --> 00:11:37,560 Speaker 2: three weeks later, as the children grow in an age 213 00:11:37,600 --> 00:11:40,160 Speaker 2: appropriate way, of course, show them, show them what their 214 00:11:40,160 --> 00:11:45,000 Speaker 2: portfolio is worth, Show how it's tracking the dividends, how 215 00:11:45,000 --> 00:11:48,079 Speaker 2: it works, the reinvestment, even the tax. If they're old 216 00:11:48,160 --> 00:11:51,880 Speaker 2: enough to understand that concept, how delayed gratification works, Compare 217 00:11:51,920 --> 00:11:54,719 Speaker 2: it how it was performed last year, even if it 218 00:11:54,880 --> 00:11:58,280 Speaker 2: underperformed and went backwards. Show them, because that's normal and natural. 219 00:11:58,360 --> 00:12:00,360 Speaker 2: That's nothing to be upset about or ashamed. In fact, 220 00:12:00,720 --> 00:12:02,720 Speaker 2: you can explain to them the fact that market went back, 221 00:12:02,760 --> 00:12:04,560 Speaker 2: the portfolio went down, but we were able to buy 222 00:12:05,040 --> 00:12:07,840 Speaker 2: more shares in that particular stock call is that investment 223 00:12:07,840 --> 00:12:10,280 Speaker 2: company or ETF at a discount of price. These are 224 00:12:10,360 --> 00:12:13,560 Speaker 2: really valuable lessons that you're planning, powerful seeds that are 225 00:12:13,600 --> 00:12:15,839 Speaker 2: really going to help them further down the track when 226 00:12:15,840 --> 00:12:18,000 Speaker 2: it comes to their managing their own money. They're not 227 00:12:18,040 --> 00:12:19,800 Speaker 2: going to be intimidated. They're going to be empowered. They're 228 00:12:19,840 --> 00:12:21,160 Speaker 2: going to be excited, and they're going to have some 229 00:12:21,200 --> 00:12:24,160 Speaker 2: great education and knowledge and also a bit of experience 230 00:12:24,200 --> 00:12:26,800 Speaker 2: behind them. And again a reminder, you're not just giving 231 00:12:26,800 --> 00:12:29,600 Speaker 2: them money, you're teaching them. You know the importance of 232 00:12:29,640 --> 00:12:34,160 Speaker 2: patients delay gratification, how money grows, how money works for you. 233 00:12:34,160 --> 00:12:36,040 Speaker 2: You know what passive income is and how it really 234 00:12:36,120 --> 00:12:38,720 Speaker 2: does add value in someone's life, and that wealth is 235 00:12:38,760 --> 00:12:43,000 Speaker 2: actually built slowly and steadily, you know, with consistency. It 236 00:12:43,000 --> 00:12:48,040 Speaker 2: doesn't just happen overnight. And that's education done in action, 237 00:12:48,600 --> 00:12:54,400 Speaker 2: and that is I think absolutely priceless and invaluable. So 238 00:12:54,840 --> 00:12:57,679 Speaker 2: what are the numbers you know that we're talking about here? 239 00:12:57,720 --> 00:13:00,360 Speaker 2: You know, is it two thousand dollars investment portfolio building 240 00:13:00,360 --> 00:13:03,439 Speaker 2: here or a ten thousand dollars investment portfolio. Well, let's 241 00:13:03,440 --> 00:13:06,640 Speaker 2: work with the example that this particular listener has given me. 242 00:13:06,800 --> 00:13:09,959 Speaker 2: If this listener or yourself invested one thousand dollars today 243 00:13:10,160 --> 00:13:12,640 Speaker 2: and then invested to say, one thousand dollars every single 244 00:13:12,679 --> 00:13:16,320 Speaker 2: year over the period of eighteen years, assuming a four 245 00:13:16,360 --> 00:13:20,679 Speaker 2: percent per anum capital growth, a four percent income per anum, 246 00:13:21,120 --> 00:13:25,160 Speaker 2: and the dividend growing, that is, the income growing by 247 00:13:25,200 --> 00:13:29,000 Speaker 2: four percent each year, that portfolio could be worth forty 248 00:13:29,120 --> 00:13:33,640 Speaker 2: seven thousand, three hundred dollars by age eighteen assuming they 249 00:13:33,679 --> 00:13:35,440 Speaker 2: do this, you know, when they're born, for example, with 250 00:13:35,440 --> 00:13:39,079 Speaker 2: the twins, and that could be paying an annual passive 251 00:13:39,080 --> 00:13:43,600 Speaker 2: income of approximately sixteen hundred and eighty dollars per annum. 252 00:13:44,320 --> 00:13:48,080 Speaker 2: Now that's not because of luck. That's because of the 253 00:13:48,160 --> 00:13:52,679 Speaker 2: time time in the market being consistent, and of course compounding, 254 00:13:53,080 --> 00:13:56,120 Speaker 2: and remember this is just one example. The real value 255 00:13:56,360 --> 00:13:58,760 Speaker 2: is what it enables for the child. 256 00:13:58,880 --> 00:14:00,439 Speaker 1: You could do this often. 257 00:14:00,520 --> 00:14:03,120 Speaker 2: You could do this with larger amounts of money as 258 00:14:03,160 --> 00:14:06,200 Speaker 2: your financial situation change. It really boils down to what 259 00:14:06,240 --> 00:14:09,640 Speaker 2: you can safely and comfortably afford. So, as I wrap 260 00:14:09,720 --> 00:14:13,079 Speaker 2: up today's episode, I wanted to finish with this investing 261 00:14:13,200 --> 00:14:16,280 Speaker 2: for your grandchild or a child that you absolutely love, 262 00:14:16,320 --> 00:14:19,520 Speaker 2: and it all is one of the most loving, forward 263 00:14:19,600 --> 00:14:23,840 Speaker 2: thinking things that you could ever do for them. It says, 264 00:14:24,200 --> 00:14:27,520 Speaker 2: I'm thinking about your future. I believe in you, I 265 00:14:27,560 --> 00:14:29,680 Speaker 2: have faith in you. I want you to start a 266 00:14:29,760 --> 00:14:34,840 Speaker 2: life with confidence and empowerment. And the ripple effect of 267 00:14:34,880 --> 00:14:40,920 Speaker 2: this financially, emotionally, educationally can last generations. You're not just 268 00:14:41,000 --> 00:14:45,600 Speaker 2: giving them money, You're giving them belief, opportunity, and knowledge. 269 00:14:45,800 --> 00:14:49,600 Speaker 2: And that exactly how wealth is truly passed down from 270 00:14:49,720 --> 00:14:54,920 Speaker 2: generation to generation and how we break the poverty cycle. Now, 271 00:14:55,080 --> 00:14:57,880 Speaker 2: if this episode resonated with you, can you please share 272 00:14:57,920 --> 00:15:01,200 Speaker 2: it with another grandparent or a friend or a family 273 00:15:01,200 --> 00:15:03,680 Speaker 2: member who might be wondering how they might help. In fact, 274 00:15:03,760 --> 00:15:06,720 Speaker 2: if you've got young children and parents are asking you 275 00:15:06,920 --> 00:15:10,400 Speaker 2: what they should be buying, from their birthday or anniversaries, 276 00:15:10,480 --> 00:15:12,920 Speaker 2: or any sort of special activity like Christmas. Send in 277 00:15:13,000 --> 00:15:15,640 Speaker 2: this episode. Give them a very subtile hint because this 278 00:15:15,680 --> 00:15:19,720 Speaker 2: is something that's really beneficial for all the family members. 279 00:15:20,120 --> 00:15:22,400 Speaker 2: And of course, if you have any questions that you 280 00:15:22,440 --> 00:15:25,280 Speaker 2: would like answered in a future Star Here episode, I 281 00:15:25,280 --> 00:15:28,680 Speaker 2: have popped my email address and contact details in the 282 00:15:28,720 --> 00:15:32,360 Speaker 2: podcast notes below. All right, I'll see you next Monday 283 00:15:32,360 --> 00:15:36,280 Speaker 2: morning on Sugar Mamma's Fireplay. Thank you everyone for listening, 284 00:15:36,360 --> 00:15:38,320 Speaker 2: and please take a moment to leave me a rating 285 00:15:38,480 --> 00:16:19,720 Speaker 2: and review.