It must be clear the child is entitled to the funds so the tax liability belongs to the child. For parents who are planning ahead, a well diversified investment portfolio, with regular additional investments, can take much of the pain out of saving for your children's future. A properly structured and managed investment portfolio can earn attractive rates of return and be subject to comparatively low tax rates. This requires careful consideration of the investment timeframe and your willingness to accept risks. You also need to decide whose name to invest in.
Professional advice can help avoid the traps of investment on behalf of children.
It's time to review your investments and set your financial goals January marks the halfway point of the financial year and, with the threat of the millennium bug firmly behind us, is the perfect time to review your investments and get your personal finances in order. Last year proved to be an eventful year for the economy and financial markets. Listed property trusts experienced disappointing returns as a result of the rise in long term interest rates. Overall, they are undervalued and offer an attractive investment opportunity for the long term investor seeking predominantly an income investment. Australian shares continue to offer the potential for sound returns for long term investors.