The $3.8 billion ETF gives exposure to the widely tracked global sharemarket index at a low cost of 18 basis points.
“At this stage, the plan is to invest in ETF funds, but as my son’s knowledge grows, we will teach him how to invest into individual companies,” Adrian tells The Australian Financial Review.
He hopes these investments will give Sam an early education in investing, and says he’s discussed with him the different options and risks involved in each investment, and also the power of compounding interest.
“He is only seven but is getting a good knowledge base for future investments,” says Adrian.
So, are Adrian and Sam in it for fun or fortune?
“He does enjoy seeing how his portfolio is going, but more importantly, we are teaching life skills about savings, finance and wealth growth.”
Adrian say he wants Sam to stay invested beyond his 18th birthday, when he will then be old enough to assume full control of the portfolio.
“I want him to keep investing. This is the start of his wealth journey, and we want him to be able to be financially independent as soon as possible.”
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