i’m under 18 but close to it so what should i do to invest
10/20/2024 02:31pm
As a minor, you cannot open a brokerage account independently, but you can still take steps to start investing under the guidance of a parent or guardian. Here are some options for you:
1. **Use a Custodial Account**: A custodial account, such as a Uniform Transfer to Minors Act (UTMA) or Uniform Gifts to Minors Act (UGMA) account, allows a parent or guardian to manage the account on your behalf until you reach the legal age of 18. This mechanism enables you to invest in stocks, bonds, or other securities while still receiving parental oversight.
2. **Open a Joint Account**: You can open a joint account with a parent or guardian, where both parties have equal ownership and decision-making authority. This allows you to participate in the investment process while still benefiting from the experience.
3. **Invest Through a Parent's Account**: If your parents have a brokerage account, you can invest through their account by contributing a portion of your allowance or earnings. This way, you can still participate in the investment process and learn from their experience.
4. **Consider a Trust**: If you have a significant amount of money or assets, you may want to consider setting up a trust. A trust can allow you to invest in a more sophisticated manner, and a trustee can manage the assets on your behalf until you reach the age of majority.
It's important to note that regardless of the method you choose, it's crucial to educate yourself on the basics of investing and understand the risks involved. You should also discuss your investment plans with a financial advisor or a trusted adult to ensure that you're making informed decisions.