However, giving stock directly to a 529 plan isn’t allowed.Īnyone can contribute to a child’s 529 plan–including family members and friends. Conversely, you can contribute cash to a child’s 529 plan.Īnd that cash can be used to purchase shares in a qualifying stock or bond mutual fund for the plan. It’s important to note that you cannot deposit stock shares to 529 plans. You may find some information on the internet about contributing gifts of stock to 529 plans. ![]() Once you purchase the stock shares, you’ve got to specify that the dividends from the stocks are to be reinvested.ĭRiP programs are a great way to help multiply the compound interest the gift recipient earns as the stock value grows. You can also set up DRiP programs directly through companies that you want to buy stock shares in as well, such as Hershey’s or 3M. FirstShare is one company that will let you set up custodial accounts for kids where you can buy dividend paying stocks. Set Up A Dividend Reinvestment Plan (DRiP)Ī third option is to set up a DRiP program for a child. If you don’t want to be listed as the account’s custodian, you can always ask the child’s parents to open the custodial account in their own name.Īnyone can contribute to a child’s custodial brokerage account, even if they’re not the custodian. But know that you’ll need to have the child’s Social Security number to do so. However, the account is managed by the custodian.Īnyone can open a custodial brokerage account for a child–even if they aren’t related to the child. If the child you’re buying for is a minor, you may want to set up a custodial investment account for them.Ī custodial account is an account in which the funds are designated for the benefit of the child. Whether your goal is to create a solid, steady-growth portfolio or a higher-risk “just for fun” portfolio, buying stock shares is a great way to give a kid a gift. Or shares of stock in your favorite gaming company. Imagine being a kid and get a share or two of stock in Hershey’s. ![]() Sports team stocks or gaming-related stocks.Stocks from their favorite clothing or toy brands.When purchasing stocks or shares of stock as a gift for a child, you can make it extra fun (because getting money as a gift is already fun!) by creating a theme around the gift.įor instance, you can buy stocks in a theme such as: There are several investment apps and companies that will allow you to buy not only whole shares of stocks, but fractional shares of stocks as well. One way to give kids stock as a gift is to buy them stock shares from your (or their) favorite companies. Buy Shares Or Fractional Shares Of Stocks Here are some ideas for ways you could give stock to your kids or other kids as gifts. If the market continues to do what it’s always done, gifts of stock could be the gift that keeps on giving–forever. I suspect this is the case with a lot of kids these days.Įven if your kid doesn’t have an abundance of toys, wouldn’t it be cool if loved ones could give them a gift that could have a lasting impact?Ī share or shares of stock have the potential to grow over the years. The answer to that question is “too much”. We moved into a new house recently, and it really made me realize how much stuff my kids have. Companies Where You Can Give Stock To Kids Set Up A Dividend Reinvestment Plan (DRiP)
0 Comments
Leave a Reply. |
Details
AuthorWrite something about yourself. No need to be fancy, just an overview. ArchivesCategories |