Give Your Child a Head Start on Their Financial Journey
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 Financial, we understand the importance of generational wealth planning and offer solutions to help you invest on behalf of the young people you care about.
What is Trust-Based Investing for Minors?
Trust-based investing for minors allows you to hold investments "on behalf of" or "in trust" for a child until they reach adulthood. 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're ready to take control of their investments.
Whether you're a parent looking to secure your child's future, grandparents wanting to leave a lasting legacy, or an aunt or uncle who wants to contribute to a young person's success, this investment approach can help children get started on the right financial path from an early age.
How Does It Work?
Setting up investments for minors through Morgans Financial is straightforward and professional. Our experienced team, led by Principal Kylie Harding with over 30 years in financial services, will guide you through the process:
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
Investment Management:
- Access to our full range of investment products including Australian shares, international shares, ETFs, and managed portfolios
- Professional advice and ongoing portfolio management through our Wealth+ service
- 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 account
- Our team will guide you through this process and any associated tax considerations
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 18+ years 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's no limit to how many trust arrangements you can establish. You can manage separate investments for multiple children simultaneously, each with their own tailored approach.
4. Professional Management
Through our Wealth+ managed portfolio service, your child's investments receive the same professional attention as our high-net-worth adult clients, including quarterly reviews and strategic rebalancing.
Investment Options for Young People
At Morgans Financial, we offer a comprehensive range of investment options suitable for long-term wealth building:
- Australian Shares: Build a foundation with quality ASX-listed companies
- International Shares: Access global growth opportunities
- 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
Trust-based investing for minors can have tax implications that vary depending on your specific circumstances. Our team provides comprehensive advice on:
- Tax-effective investment structures
- Income distribution strategies
- Capital gains planning
- Transition planning for when the child reaches adulthood
We strongly recommend discussing your specific situation with our advisers to ensure you're making the most tax-effective decisions for your family's circumstances.
Getting Started: Your Next Steps
Ready to give a child in your life a financial head start? Here's how to begin:
- Initial Consultation: Contact our Mona Vale office for a complimentary discussion about your goals and the child's future needs
- Strategy Development: We'll work with you to create an appropriate investment strategy based on the time horizon and risk tolerance
- Account Setup: Our team will handle all the paperwork and administrative requirements
- Ongoing Management: Regular reviews ensure the investments stay on track to meet long-term objectives
Investment Advice with Heart
At Morgans Financial, 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 all-female team brings empathy and understanding to every client relationship, ensuring that your family's unique circumstances and values are reflected in the investment strategy we develop together.
Take Action Today
The best time to start investing for a child'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 that keeps on giving: a solid financial foundation for the future.
