Setting up a bank account for a bub

Discussion in 'Money Management & Banking' started by sandyfeet, 15th Dec, 2015.

Join Australia's most dynamic and respected property investment community
Tags:
Page 2 of 2
  1. neK

    neK Well-Known Member

    Joined:
    18th Jun, 2015
    Posts:
    2,842
    Location:
    Sydney
    That's why its lower, the tax is being paid within the investment as you've said.
    When you work the numbers out, its not necessary more tax effective, especially if the investment could be held in the name of a person who's on a lower tax bracket.

    It's like saying 100% franked dividends are a more tax effective investment than non franked dividends... its not, its all grossed up and applied back at the marginal tax rate.... its just the moving of the numbers around that make it look like its tax effective. All smoke and mirrors.
     
    neK, 16th Dec, 2015
    #21
  2. Tim & Chrissy

    Tim & Chrissy Well-Known Member

    Joined:
    5th Dec, 2015
    Posts:
    1,022
    Location:
    NSW
    We have 4 kids and they have just over $18k in their savings accounts, I know that money would be better in the offset but it's too hard to keep track of.

    We teach them about the value of money, saving etc. through the odd bit of pocket money.
     
    Tim & Chrissy, 16th Dec, 2015
    #22
    sandyfeet and Gockie like this.
  3. Banister

    Banister Member

    Joined:
    18th Jun, 2015
    Posts:
    11
    Location:
    Melbourne
    Correct neK its tax effective for some, not for others. It was suggested as an option in the context of reducing the high tax levied on children.
     
    Banister, 17th Dec, 2015
    #23
Page 2 of 2
Client Directed Portfolio Super your way

We provide our clients with the opportunity to select their own investments from a wide range of ASX listed securities. We provide the research to ensure your selections will achieve the goals. This is the value of advice.