A MUM has revealed how she is planning on turning her newborn baby into a millionaire – and has shared tips any parents can follow.
Queenie Tan, 27, and her fiancé Pablo Bizzini, 32, were delighted when daughter Gia was born on March 19 and want to give her the best chance in life.
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As soon as she was born, the Sydney-based couple invested $1000AUD (£521) in her name, and plan to continue doing this every year of her life.
They will also add all cash gifts from friends and family to this while she is very young, but will give her 50 per cent of present money when she is a bit older and invest the rest.
They estimate that by the time Gia has reached the age of 18, she will have $41,000 (£21,399) and this will reach $1.8million (£939,499) by the time she is 65, based on their yearly estimated return of eight per cent in the portfolio.
Speaking to FEMAIL, licensed personal finance content creator Queenie said: “Investing is a great way to ensure our money is worth more over time rather than eaten away by inflation – and the rising cost of living.
“That’s why I’ve started investing for her so she has a head start when she’s a young adult.”
The dedicated mum hopes the money will help her when it comes to buying a house or with higher education.
Queenie explained that she has invested the money in two exchange traded funds (ETFs) including a US ETF (called VTS) and a Global ETF (VEU).
Many ETFs provide returns from six to 12 per cent per year over the past ten to 20 years.
Queenie added: “Compound interest from investing is a magical thing, and it’s great to get children interested in it early.
“I still want her to enjoy all the wonderful things money can do in the present (like fun experiences), but I also want to show her that investing it in assets can help make her life easier when she’s older.”
The couple hope to teach their daughter about investments and hope she can pick her own one day.
Queenie and Pablo are worth $800,000 (£417,543) and have managed to achieve this from £104,385 in 2020.
Investing is a great way to ensure our money is worth more over time rather than eaten away by inflation – and the rising cost of living.
Queenie Tan
The pair have seven streams of income, with the majority of their income coming from social media brand collaborations.
They also get money from speaking at events, ad revenue, renting out property and shares.
Queenie insists that you don’t need a lot of money to start investing, and can start from as little as $5 (£2.60).
How to start investing
BEFORE investing you need to be aware of the risks, as unlike cash, what you save can go both up and down.
This means you can be left with less than what you started with.
And if your investment performs poorly, you’re not protected for any loss by the Financial Services Compensation Scheme (FSCS) which covers cash up to £85,000 per financial institution.
Although if the firm you’ve invested with is regulated in the UK, you may still be able to use the FSCS to claim if the company itself fails.
There are of course ways to reduce the risk of investing – for example you could opt to invest in cheaper so-called “passive funds” that track the fortunes of various stock markets, such as the FTSE100 or FTSE All Share indices.
Investing in actively managed funds – that pool different types of investment together – is also less risky than just investing in individual companies, known as shares. This is because you’re spreading your risk across a range of companies or other types of investment, such as bonds or property.
Robo-investing – where a computer determines what you should invest in based on a questionnaire of your preferences – also comes with lower risk as it’s spreading your investments.
If you feel confident, you can start investing by setting up an account on an investment platform – a sort of supermarket of different investment products. And you can do all of this within a Stocks and Shares or Lifetime Isa wrapper. Do check the fees first – both for the platform and the individual investments themselves.
If you’re unsure, you should always seek professional advice – you can use comparison services Unbiased or VouchedFor to find a suitable financial adviser.
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