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  1. #1
    Advanced Member Entrep's Avatar
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    Question Newborn - good shares?

    I have a newborn and received some money for him. Rather than sticking it in term deposit until he is 16/18, I thought why not give him a Sharesies account (they have them for kids) and buy 1-2 stocks.

    I'd also like to get him into investing young, and give him a better start than I got in that regard.

    Which stocks would you think in such circumstances? I am thinking as aggressive as possible, so long as it doesn't go to zero. That would be an embarrassing story to tell him when he's old enough.

    Maybe SKO (aggressive) and ARV (stop it going to zero). MFT and SUM were other considerations.
    BTC went to $69K and now $16K. Good thing I’ve been warning you since it was $3K! I was right!

  2. #2
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    Quote Originally Posted by Entrep View Post
    I have a newborn and received some money for him. Rather than sticking it in term deposit until he is 16/18, I thought why not give him a Sharesies account (they have them for kids) and buy 1-2 stocks.

    I'd also like to get him into investing young, and give him a better start than I got in that regard.

    Which stocks would you think in such circumstances? I am thinking as aggressive as possible, so long as it doesn't go to zero. That would be an embarrassing story to tell him when he's old enough.

    Maybe SKO (aggressive) and ARV (stop it going to zero). MFT and SUM were other considerations.
    Superlife, Juno or Simplicity have got options for funds for kids otherwise for an individual stock pick it really shouldn’t be any different from if you are picking it yourself. If it’s a good company at a reasonable price shouldn’t matter if you are buying it in your name or your sons.

    Perhaps to get him interested (my kids are 3 and 2) you could pick a company that is local. Eg if you are in Auckland then the airport, retirement villages, REITs, etc so you can drive past and say “that’s your business look at that cool new runway you are helping build”

  3. #3
    Guru Rawz's Avatar
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    Quote Originally Posted by Entrep View Post
    I have a newborn and received some money for him. Rather than sticking it in term deposit until he is 16/18, I thought why not give him a Sharesies account (they have them for kids) and buy 1-2 stocks.

    I'd also like to get him into investing young, and give him a better start than I got in that regard.

    Which stocks would you think in such circumstances? I am thinking as aggressive as possible, so long as it doesn't go to zero. That would be an embarrassing story to tell him when he's old enough.

    Maybe SKO (aggressive) and ARV (stop it going to zero). MFT and SUM were other considerations.
    I have a 6 month old and if I was to do something similar it would have to be S&P500. Boring I know but its proven and a large % of the companies that make up the index earn huge international income so its effectively a global etf.

    Over 18 years let the compounding magic work.

    The problem with picking any stock even the very best ones is you still need to monitor them. Look at the top companies 20 years ago and they will be completely different from today's top companies.

    So as a set and forget with a 18 year timeframe its a boring ETF for me.

  4. #4
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    I put $50 a month into fnz for my kids. It was about $30k when they turned 18.

  5. #5
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    I will suggest KFL with DRP on for any super long term investment ...it does much better then FNZ ...U can check from past records ...

  6. #6
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    Have been down this route. Personally found the best thing to do was have it in a managed fund to spread the risk.

  7. #7
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    Sharesies new fees may be an issue if drip feeding a little amount.
    Fully agree with others about a long term set and forget index based approach.
    Have set up my kids almost from birth with regular inputs going to InvestNow into "Vanguard International Shares". A low key quiet consistent earner that will be there for them at 18 to make some serious decisions with.
    Am now getting into "pocket money" years at 7&9 years old however, so while am contining contributing to their "newborn" fund they're starting to appreciate how money works now.
    A bit off-topic but loving introducing to them at the moment how to divide their "allowance" into three pots...
    - everyday spending
    - saving
    - investing
    Short personal opinion here is get an index fund of choice started first thing and keep it going. Then later on, when they're old enough to be interested, add on some share/etf/fund investment ideas with their input. Fun times 😊

  8. #8
    Guru Rawz's Avatar
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    If you want to put a portion into a risky etf with huge upside potential I would go with a Poland etf like EPOL.

    I believe Poland will become a global voice and power. Have more influence in the EU and their economy will outperform its peers

  9. #9
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    Firstly, good on you for doing this. You probably ahead of 90% of most people.

    some good thoughts here by other posters

    My personal thoughts would be a very low fee etf . Maybe kernel or simplicity offer are 2 low cost providers.

    Looking at the past 20 yrs you’d probably go us500 etf on performance.


    Looking forward 20 yrs things may be different. I’d consider some emerging market exposure like India, Africa, South east Asia. These markets will develop much like China today vs China 20 yrs ago so maybe a Total world fund would get some exposure to both usa and emerging.

    Someone mentioned thematics. Much like last decade has been tech driven…maybe next 10 will be decarbonisation, AI and automation, cyber security driven but these are quite speculative and you probably getting some exposure through a us 500 or twf anyway..

    I’d consider us 500, total world fund or global top 100 as the core etf.
    If you had a reasonable amount of money you could bring in a small allocation to the emerging markets or a thematic you believe in.

    Good luck deciding and please post what you decide

  10. #10
    Dilettante
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    I'm with Raws and Perky. I've done this for my grandchildren and put in small equal amounts into S&P500 Vanguard ETF (VOO) & S&P 500 Value Vanguard (VOOV). Not saying they are better than other ETF''s but easy and cheap to invest in through Hatch and Smartshares in my view. Have no view on Sharesies as I've never used them.

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