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Giving $100k to family

Discussion in 'General Investing Discussion' started by Compleks, 18th Sep, 2019.

  1. Compleks

    Compleks Well-Known Member

    Joined:
    18th May, 2007
    Posts:
    349
    Location:
    Melbourne
    I used to be interested in money, investing, my future etc etc...

    I dabled in managed funds, shares and bought an investment property many years ago.
    (I wasn't very good or successful)

    My personal interest fell away and I sold out of my funds/shares, but kept my property. It didn't do much for me either. Or I didn't do much for it perhaps.

    Anyway. I have sold it, and will have $100k that I don't want in the next month or two.
    I want to pass it onto my siblings and Neice.

    Initially I was just going to transfer it to them, in the hope that it might make for a nice deposit on a house. They currently all rent together (3 of them, and my neice).

    I don't know if they plan on staying together moving forward, so thought of splitting it up and giving them some cash each instead.


    Now that I nearly have the money, I was thinking of investing it on their behalf. Term deposit rates look pretty sad, and I don't want any involvement once the money is out of my hands.

    So I was thinking about putting it into a simple (ethical would be preferred) managed fund. Then encouraging each of them to set up a direct debit into the fund. Might only be $100 a week total, but enough to start some good saving habits and maybe get them interested.
    If they do this for at least a year, it would give them time to figure out what they want to do with the money while any interest earned could go directly to a savings account for my neices future (when and if they take the cash out).


    Given my poor track record and lack of interest in anything financial as of late, I thought I should ask some smart folk for advice.

    What do you think of my (rudimentary) strategy?
    What would you advise?
    Can you recommend any (ethical) funds?

    Many many thanks for any assistance. I really don't have the attention or smarts to make the best decisions with this money. I just know that I would like to help my family out and could use some advice.

    Thank you
     
    twisted strategies likes this.
  2. twisted strategies

    twisted strategies Well-Known Member

    Joined:
    3rd Nov, 2013
    Posts:
    1,159
    Location:
    QLD
    not develop the passion for investing in the relatives , first ??

    how about a library ( resource ) of quality books on investing ( in shares , property and bonds , , accounting principles , etc. ) ( could be a shared computer program for efficiency )

    using the ' teach them to fish ' philosphy THEN let them decide how to deploy the cash in ... say 2 years time
     
  3. Hodor

    Hodor Well-Known Member

    Joined:
    17th Sep, 2016
    Posts:
    304
    Location:
    hodor
    Timeframe for the sharemarket should be at least 7 to 10 years as you can never be sure when a crash is near.

    If you want the cash in a year a high interest savings account is the most reasonable option.
     
    twisted strategies likes this.
  4. Terryw

    Terryw Well-Known Member

    Joined:
    9th Jun, 2006
    Posts:
    941
    Location:
    Sydney
    Best not to give it to them. They might lose it on divorce etc.

    You could set up a discretionary trust, maintain control and distribute the income to them, or make interest free loans etc.
     
    RS Gumby and twisted strategies like this.