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Q&A: Debt free - what next, DCA vs lump sum & what happens to super when you die

Australian Finance Podcast

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The Importance of Education in Compounding

I would focus on the education piece probably before giving the gift, do you think? Because otherwise, if I was given $10,000 when I was 18, it would be burning a hole in my pocket and I'd probably figure out how to sell it. The idea of getting started compounding is incredibly powerful and starting that lesson is key. Be clear on the purpose was one of the notes I had. Are you giving it to them to buy a car, to buy a house just to compound forever? Yeah. Like they will try and sell it at some point. So try to be clear at the time.

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