It’s never too early to start saving for retirement, and the good news for parents who want to give their children a head start is that, yes, it is possible to set up a superannuation fund for your children.

Superannuation fund selection is the first step

Depending on your child’s age, you might need to shop around to find a fund that allows you to set up accounts for children.

UniSuper, for example, only allows funds to be set up for people aged 15 and above.

Student Super, on the other hand, allows a fund to be set up at any age and charges no administration fees for balances under $1000.

The fund’s Golden Goose Gifting program was specifically set up to make it easy for parents and grandparents to put money into a child’s superannuation account.

Student Super Chief Executive Officer Andrew Moloney says in a video on the fund’s website that Australians generally set up a super fund at about the age of 20, but by setting up a fund early, the benefits of compound interest can accrue for around two decades longer.

In order to set up and contribute into a superannuation fund for a child, it’s necessary to set up a tax file number (TFN) for the child also.

Student Super’s website says, “Once the child’s TFN is added to their account, the parent or guardian will be able to access the details to make a contribution to the child’s super account”.

The magic of compound interest

And the benefits are significant. $1000 contributed when a child is born, compounded over 20 years at 8%, turns into $4661, as calculated on the Moneysmart compound interest calculator.

If $1000 more is added each year, this figure grows to $50,423.

And this isn’t counting the contribution that the Federal Government will make to your child’s super account.

The government makes a co-contribution to superannuation for low-income earners of $500, as long as $1000 in non-concessional (after tax) contributions are made.

As the ATO says:

You don’t need to apply for the super co-contribution. When you lodge your tax return, we will work out if you’re eligible. If your super fund has your tax file number (TFN), we will pay it to your super account automatically.

If $1500 is compounded at 8% over 20 years, the result is $6991; if $1500 is contributed each year for 20 years, the result is a whopping $75,634.

That’s quite the head start, and while super is usually tied up until retirement age, the personal contributions can be withdrawn and used to buy a home under the government’s First Home Super Saver Scheme.

The post How to give your child a $75,000 superannuation head start appeared first on The Motley Fool Australia.

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Motley Fool contributor Cameron England has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has no position in any of the stocks mentioned. The Motley Fool Australia has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

Bell Potter has been busy running the rule over the Grattan Institute report this month relating to the pharmacy industry.

The broker notes that if the changes suggested were put in place there could be significant implications for Chemist Warehouse owner Sigma Healthcare Ltd (ASX: SIG).

What is in the report?

Bell Potter highlights that the Future Pharmacy report shines light on the inefficiencies of the funding and other arrangements for Community Pharmacy (CP) in Australia. 

It notes that if “either side of politics to embrace the deregulation measures as recommended, earnings patterns for SIG and many of the pharmacies whose earnings are preserved by this pharmacy gerrymander would change forever.”

Commenting on the report, Bell Potter said:

The Grattan report identifies numerous inefficiencies within Australia’s system for CP including pharmacy remuneration and the opacity of data supporting the current structure, however, maximum venom is reserved for the pharmacy ownership laws and location rules. 

The rules are no longer fit for purpose and now act as a handbrake to further competition while preserving the earnings stream of incumbents. The rules also prevent the participation of supermarkets in CP for reasons that are less clear with each passing year.

Thankfully for Sigma Healthcare and its shares is that Bell Potter believes any potential changes to regulations would still be a long way off. It adds:

Whether the Grattan report influences change remains to be seen, however, CP is probably a long way down the Federal Government’s priority list for reform. Additionally, reform in this section of the market is unlikely to generate momentum on polling day, particularly if the Guild and AMA oppose changes as history suggests is likely. For these reasons, the regulatory environment supporting Community Pharmacy and the likes of Sigma Healthcare are unlikely to change.

Should you buy Sigma Healthcare shares?

According to the release, Bell Potter has retained its hold rating and $3.00 price target on the company’s shares. This is just a touch above its current share price of $2.93.

Commenting on its hold rating, the broker said:

Regulatory upheaval in CP is unlikely, nevertheless, investment metrics for SIG are not sufficiently attractive to warrant a Buy rating, particularly with a single payer (the Federal Government) representing a disproportionate level of group revenue. 

The Government’s propensity to alter funding arrangements on short notice with little industry consultation should elevate the risk rating on SIG. We maintain our Hold rating and PT $3.00.

The post Chemist Warehouse: Are Sigma Healthcare shares a buy, hold, or sell? appeared first on The Motley Fool Australia.

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• Here are the top 10 ASX 200 shares today

Motley Fool contributor James Mickleboro has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has no position in any of the stocks mentioned. The Motley Fool Australia has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

The S&P/ASX 200 Index (ASX: XJO) endured a bumpy and ultimately negative start to the week’s trading this Monday. After remaining in positive territory for most of today’s session, investors ended up getting cold feet right before the closing bell. After that collapse in confidence, the ASX 200 ended up finishing down 0/061%, leaving the index at 8,791.3 points.

This rather indecisive session for the Australian markets came after an even nastier end to the American trading week on Friday night (our time).

The Dow Jones Industrial Average Index (DJX: .DJI) had another tough session, dropping 0.77%

The tech-heavy Nasdaq Composite Index (NASDAQ: .IXIC) fared even worse, falling a horrid 1.4%.

But let’s get back to this week and our local markets now and take a closer look at what was happening amongst the different ASX sectors today.

Winners and losers

Tech shares were the sector that was singled out for punishment this Monday. The S&P/ASX 200 Information Technology Index (ASX: XIJ) was slammed, tumbling 1.54%.

Utilities stocks fared better, but the S&P/ASX 200 Utilities Index (ASX: XUJ) still tanked by 0.63%.

Healthcare shares were in a similar boat. The S&P/ASX 200 Healthcare Index (ASX: XHJ) saw its value dive 0.49% today.

Mining stocks weren’t popular either, evident by the S&P/ASX 200 Materials Index (ASX: XMJ)’s 0.34% dip.

Gold stocks were also no safe haven. The All Ordinaries Gold Index (ASX: XGD) ended up sinking 0.23%.

Real estate investment trusts (REITs) followed right behind gold, with the S&P/ASX 200 A-REIT Index (ASX: XPJ) dipping 0.17%.

Our last losers this Monday were financial stocks. The S&P/ASX 200 Financials Index (ASX: XFJ) slipped 0.07% by the closing bell.

Let’s turn to the winning sectors now. Leading the charge were energy stocks, illustrated by the S&P/ASX 200 Energy Index (ASX: XEJ)’s 1.8% surge.

Consumer staples stocks also ran hot. The S&P/ASX 200 Consumer Staples Index (ASX: XSJ) roared 0.43% higher this session.

Communications shares saw high demand too, with the S&P/ASX 200 Communication Services Index (ASX: XTJ) lifting 0.39%.

Industrial stocks came next. The S&P/ASX 200 Industrials Index (ASX: XNJ) advanced 0.16% today.

Finally, consumer discretionary shares got themselves over the line, as you can see by the S&P/ASX 200 Consumer Discretionary Index (ASX: XDJ)’s 0.11% bump.

Top 10 ASX 200 shares countdown

Today’s winner was healthcare share 4DMedical Ltd (ASX: 4DX). 4DMedical shares soared 7.19% higher this session to close at $3.43 each. This may have been a reaction to last week’s announcement.

Here’s the rest of today’s best: 

ASX-listed company	Share price	Price change
4DMedical Ltd (ASX: 4DX)	$3.43	7.19%
Deep Yellow Ltd (ASX: DYL)	$1.31	6.10%
Yancoal Australia Ltd (ASX: YAL)	$5.68	5.97%
South32 Ltd (ASX: S32)	$4.08	4.62%
Pantoro Gold Ltd (ASX: PNR)	$2.00	4.18%
Graincorp Ltd (ASX: GNC)	$5.23	4.18%
Viva Energy Group Ltd (ASX: VEA)	$2.43	3.85%
AMP Ltd (ASX: AMP)	$2.09	3.47%
New Hope Corporation Ltd (ASX: NHC)	$5.38	2.87%
Whitehaven Coal Ltd (ASX: WHC)	$7.63	2.69%

Our top 10 shares countdown is a recurring end-of-day summary that shows which companies made big moves on the day. Check in at Fool.com.au after the weekday market closes to see which stocks make the countdown.

The post Here are the top 10 ASX 200 shares today appeared first on The Motley Fool Australia.

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Motley Fool contributor Sebastian Bowen has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has no position in any of the stocks mentioned. The Motley Fool Australia has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.