I would like to buy my nephew a stock for Christmas. He is only 2 and I know he wont care about it now but he will in the future and so many people are going to buy him so many toys already that I want to get him something different. So I went to this site called "oneshare.com" but they have this fee called a transfer fee and all kinda extra charges. Where can I go online to buy a stock like this to give away without this fee or is it unavoidable? Or do you know of any other sites that may be set up to buy stocks for children? Thanks so much. He will appreciate one day!!!
2006-12-07 19:01:04 · 5 answers · asked by joycebyerly@sbcglobal.net 2 in Business & Finance ➔ Investing
Yes, buy and sell fees are unavoidable. That being said, the buy and sell fees, plus taxes might outstrip any gains on that one share.
Since he is only two, he probably doesn't have the capacity of real jealousy or have a real attention span. Just get him a ball and he would be as happy as if he got a more expensive toy. Then you take the money you would have spent on him and start the fun. Find a online brokerage site that has no annual fees. Now I don't know how much you plan on spoiling the kid, so I think $100 for his birthday and Christmas (and keep doing this each year). Most online sites let you buy fractions of shares. Now you have to take in the buy fee. Share builders is $4 for a once a week buy. So if you do it once a year that's $196 in stocks. The fourth and first quarter is generally when stocks are at their highest and the second and third quarter is when stocks are generally at their lowest. That means you might be buying your stocks when it's neithr his birthday or Christmas, but you will probably get a higher rate of return that just buying at the top every year. Historically the SP 500 (ticker SPY) has had a historical 12.5% return rate if you factor in every year of its existance. Now $196 for 16 years at 12.5% is $11,139 while spending $3,200. If he continues to add the same amount to it, he will end up with an amazing $3.27 million. That's right. You can turn $12,600 into $3.27 million just because he has 63 years to work with. Obviously he could add more when he is 18 and if he puts some of that money in a Roth IRA, he will have to pay the tax on the principal, the buy and sell fees and a charge to the people where he has his Roth, but all that is an extremely small amount when you realize that he won't be paying taxes on millions of dollars (a Roth IRA is where you don't pay federal taxes and maybe no state taxes on profits).
2006-12-07 20:35:14 · answer #1 · answered by gregory_dittman 7 · 1⤊ 0⤋
Giving stock as gift is very common, especially to a young person. There are stocks you have to avoid, unfortunately, technology stocks. Whether it is Apple or Google. The reason is very simple, a leading technology today will someday be replaced by another technology. I am in favor of the Big Cap, dividend-paid and more conservative stocks. Walmart, McDonald's as examples are good long term investment portfolios. You can purchase the stocks through a brokerage. Having done that, you inform the brokerage that you want to register the stock. I think you have to pay about $15 service charge. About 10 days after, a certificate shall be mailed to you or ready for you to pick up. Subsequent to this, the quarterly dividends shall be sent to the registered owner.
2016-05-23 05:54:25 · answer #2 · answered by ? 4 · 0⤊ 0⤋
Learn how to purchase the application directly to any DotRed share with the timing of the implementation of the purchase order we will now explain the direct application of the process of buying stocks online through DotRedn First, we begin to register a user name and password
( source )
http://www.ebuystocks.com/2014/01/how-to-buy-stocks-online.html
2014-02-18 17:39:02 · answer #3 · answered by Anonymous · 0⤊ 0⤋
Zecco is FREE.
2006-12-08 05:06:33 · answer #4 · answered by Anonymous · 0⤊ 1⤋