I wish my dad had the same 
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What a timing for me to start saving for my child: since then, the market has crashed about 10% and 3/10 companies have issued negative outlooks. I was already scolding myself for starting 3 years too late, but it seems the market reminds me of that separately 
Somehow, this decline doesnât cause any emotional turmoil when one has set the horizon so far out and purchases are intended to be made regularly. And no one in the family has lost any sleep over it 
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Donât. Iâve been invested in Efecte for a longer time (I think a little before your model portfolio purchase), but I placed an order for my son and also bought more for myself, uh⊠about a day before the guidance was lowered, and after that, itâs just been a happy downhill slide. Win-win. Anyway, that purchase day was significantly up for Efecte. I also bought Harvia for my son about a week before this decline. Iâve had Titanium for a year, at least.
Iâve just been thinking that, well, if I had bought Efecte, say, a couple of months earlier, it could have cost as much as 6e. And the same goes for Harvia, in that sense. And these timings will be forgotten over time and also disappear from sight; I trust that. That Efecte thing did annoy me back then, I must admit.
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Efecte is probably a good choice for a long-term portfolio (5 years). Now there is still positive signal from Germany, so letâs all wait a few quarters 
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The intention was to open securities accounts for the children and start saving into funds monthly, but Nordnetâs papers have been sitting on the table for a couple of months because we havenât managed to fill them out. Due to this, I opened portfolios in my own name for the children, and the idea is to save a small fund for them as an 18th birthday gift. This inevitably exposes us to changes in gift tax. But the thought was that if gift taxation remains the same, this way we can reduce capital gains taxes. For example, if you gift the pot when the children turn 17, they can then redeem the money when they turn 18, perhaps for buying a car, and capital gains tax will be based on the value on the day of the gift.
Opinions? Does this make any sense?
Itâs worth remembering that the equity savings account will be available in a year. When saving for a child, itâs the only sensible option. So, if youâre not investing huge sums, you could invest in your own name now and then open an equity savings account for the child later. Of course, thereâs no absolute certainty, but I guess the savings account will eventually come around 
I finally decided to open an account for my godchild on Nordnet and invest in index funds every now and then, especially during these dips. As I understand it, I can manage or view their account with a power of attorney.
I finally got to invest some of my sonâs dividend money into an OMX25 index fund when the market went down. Itâs like a good âinsuranceâ now; if the market goes up, thatâs good. If it goes down more, itâs always easy to add more then.
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Iâll be at Sijoitus-Invest on Thursday at 2:30 PM, speaking about saving for a child. Hope to see you there!
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Childâs portfolio YTD around +16%. Contents:
- Hoivatilat 32%
- Remedy 50%
- Superfunds for the rest (monthly savings)
The return is largely explained by the sale of Nokia at around âŹ5.3 levels in the summer.
At the same time, my own YTD is estimated to be -10-15%.
Have other peopleâs childrenâs portfolios done better than their own?
Hey Aston. Yes, my childâs portfolio is also doing better, but itâs only diversified into two stocks Talenom 85% and 15% Verkkokauppa.com. The childâs age is 2.5 years. I think Talenom is a pretty good buy at 12 euros. Verkkis (Verkkokauppa.com) hasnât performed quite as well, as its purchase price is 5.5 eurosâŠ
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My decision (my procrastination) to start this last August right before the crash was legendary. Iâm now a bit over 10% in the red. Still, I donât believe Iâll regret starting this in 15 years, especially since Iâm continuously saving.
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"When Iâve talked about this topic, a few older people have said, ââWell, of course, you want to save for your child at this stage, but then when they turn 18, youâll start thinking about how to arrange things so they donât get any capital themselves.ââ
Good to know, perhaps the educational aspect will be emphasized so that this doesnât happen.. :)"
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Inspired by the market downturn, saving for a child has also started here at the turn of the year.
The starting setup is as follows:
20% Finland Superfund
20% Sweden Superfund
20% Norway Superfund
20% Nordnet Smart 15
20% Nokia
If the initial pot size is represented by the number 100, then a total of 2 additional units flow into the portfolio funds monthly if the market rises.
In months when the fund market is cheaper than the portfolioâs average purchase price, 4 units flow into the funds.
If the market is at the average purchase price level with an accuracy of ±5%, 3 units go into the funds.
This way, buying cheaper is overweighted and buying more expensive is underweighted. After 5 years, the childâs portfolio will have accumulated 220-340 units of cash. Most likely around 260-300 units.
This in itself is a sum whose management method for a young person turning 18 is absolutely crucial for the development of adult wealth.
Instead of buying a new car, an 18-year-old can decide if they want to be in a financially secure position later.
It will be interesting to see what happens.
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Itâs good that youâre starting early with your childrenâs investments. I recommend it. Here are my own experiences.
We opened securities accounts for our children a long time ago, and the assets invested in them have grown about fivefold over twenty years. There have been several dips in between, the biggest being the tech bubble at the turn of the millennium and the 2008 crash. Weâve weathered it all.
The portfolios have largely been of the buy-and-hold type. Dividends have always been reinvested, not necessarily in the same stocks, but in those that I considered good buying opportunities at the time.
From an early age, I also told my children about the investments, which have been almost exclusively direct, mainly Finnish stock investments. When the older child was about five years old, I heard from the back seat: âMom, is that the bank I own?â We were driving past Nordea at the time â I think it was called Merita back then. Later, there have been pleasant discussions about investing. Nowadays, they already have their own views, but of course they also listen to their mom 
Itâs been nice to see how my now adult children have taken charge of their investments. One more quickly and the other gradually. Neither has wanted to cash them in. Both have also invested their own earnings.
Sorry if I sound like a teacher, but invest even seemingly small sums for your children, gift money, and dividends from stocks. Compound interest is a wonderful thing.
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What if a second child comes along, do we buy them the same Talenoms as the first? Or do they have to settle for poverty??
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Very good question. Especially if one happened to buy for the first child at a good price during a recession, there could be a fairly significant difference in wealth for the second child. It might cause a bit of resentment if one child has much greater wealth at adulthood than the other without earning it themselves.
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This isnât a simple matter to handle. You need to decide on your own approach, and there are many possibilities. For example:
- Gradually buy the same shares, or if you have enough money, buy the same amount directly as you did for the firstborn. This would be optimal, but not always possible
- Give the same amount of money (with index adjustment) as you did for the firstborn, and then buy the shares that seem best at that particular time.
- Buy whatever you buy and at some point, for example at age 18, calculate the difference and equalize it or make a plan to equalize it.
We followed the last option, and the difference amounted to 11% of the portfolio size. The junior was behind. In hindsight, I might have chosen the first option after all.
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Well, thatâs a good question. I donât have a second child, but Iâve somewhat automatically thought Iâd go with Elinaâs middle option. So, if Iâve put, say, a grand into stocks for the firstborn, then the same amount (+inflation) for the second child, and at that moment, pick the stocks that feel best, thatâs it.
Buying the exact same stocks might not be optimal, because at that moment, something with a better return/risk ratio might be available. And itâs probably not fair either that if the 10-year-older childâs portfolio has risen to ten grand, the second child immediately gets the same amount in stocks. Some equalization at age 18 might be okay, but the most ideal would be to instill in the childrenâs minds that returns are not even or the same for everyone â by acting correctly, one can either get rich in the stock market, or get very rich. In a perfect world, the child wouldnât even care, or mind, if a brother/sister got more money from stocks.
If you give one child an advance inheritance, is it fair to give another child a corresponding sum significantly later, only adjusted for inflation? Especially in a situation where the first child to receive an advance inheritance could have invested it profitably. It is important to note that the age of the heirs is not taken into account when distributing inheritance either.
With small sums, this would certainly not cause a dispute. However, investing in stocks could lead to a situation where one child is able to acquire a debt-free apartment with your investments by the time they come of age, while the other child only has enough for a new small car. The question now is whether one wants to take the risk that one child receives significantly better financial starting points without having influenced the situation in any way. Inheritance disputes can arise from fairly small matters, so the same ingredients for conflict are present when saving for children in different assets and at different times.
If you want to avoid disputes, I could imagine a solution where, for example, the goal is set as purchasing an apartment, and the savings made would cover a certain share of the apartment. If necessary, this would then be equalized when they come of age so that with the savings, both could have paid a certain part of a similar apartment.
Therefore, keep at least the same amount of assets for yourself as your child has, and possibly as many times more as you plan to have more children. You can then compensate those children whose investments have developed poorly for some reason. A dispute is unlikely to arise if it has been made clear from the outset that investments have been made for all children to cover a certain share of an apartment purchase (even if the savings are not ultimately used for that purpose).
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Hello.
Please note, when saving for a child, that the tax authority approves approximately EUR 138.80/gift/per child monthly.
This fulfills the tax authorityâs condition of a maximum of EUR 5,000/3 years.
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