How can I buy stocks or mutual funds for my children that are all over the age of 21?
steve b asked:
I’ve offered each of them $ 250 to get started in stocks or a mutual fund. Do yopu have any good sugestions?
I’ve offered each of them $ 250 to get started in stocks or a mutual fund. Do yopu have any good sugestions?
If they get $250 the fees for most mutual funds will eat right through that. Most mutual fund companies charge you fees for having less than %5000 in an account.
If they are going to buy stocks most trading companies demand a minimum of $1000 and charge a minimum of $7 a trade
You should open a CD at a local bank for them
Happy day! You may buy stocks and anything
else you wish for ANYONE you wish.
Contact any stock brokerage house [check the yellow pages] and set up an account in your name.
Buy what you wish and the broker will send the certificate to the adult child for you.
Thanks for asking!
Steve B, $250 isn’t much it limits you in your options when buying stocks because of commissions and fees. However I’ve been through that and have two great options for you.
#1 DRIPs, go to Barnes and Nobles and buy a book about DRIPs, they are plans where you can buy stock straight from the company itself, bypassing commissions and fees. I have a book at home and can’t remember the title sorry, but the book about DRIPs lists all the ways to contact those companies and how to get started.
#2, awesome online brokerage that will buy any amount of stock for you and cost is only $4. That doesn’t eat into the $250 too bad.
Good luck, hope that helps.
Open a brokerage account at TradeKing.