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Small investments to grow savings

I’m 36 and a single mother. I work 40 hours a fortnight and receive a pension. I have $1500 and not sure how or where to invest such a small sum of money. The money would help with my daughter’s education.

You’re a great mum and your daughter is lucky to have someone who cares and thinks about her future. For the best answer, I need to know how old your daughter is and what are your hopes and dreams. For example, do you want her to go to a private school? Or do you want to have money for educational coaching, say if she ends up being a bit challenged by maths, like many of us.

Let me do some thinking out loud, or at least in writing. Let’s say your daughter is five years of age and we assume you want the money by the time she goes to high school, which means you have eight years. If you put the $1500 into a safe but adventurous fund you might average 12 per cent a year. That means your money doubles every six years. So by the time she’s 11, you have $3000 and by the time she is 17 it’s $6000.

There’ll be tax but it shouldn’t be big and if you put in say some money each year you could really grow this nest egg.

For advice you can trust book a complimentary first appointment with Switzer Financial Services today.

Important information: This content has been prepared without taking account of the objectives, financial situation or needs of any particular individual. It does not constitute formal advice. For this reason, any individual should, before acting, consider the appropriateness of the information, having regard to the individual’s objectives, financial situation and needs and, if necessary, seek appropriate professional advice.

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Published on: Tuesday, January 11, 2011

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