A friend called to ask me if I would comment about the Wall Street Journal article on a new way to give stock as a gift. The concept totally surprised me as well as the fact that it has been available for some time!
A few years ago my 10 year old grandson told all his relatives he wanted stock for Christmas. That is not an unusual request knowing Calvin is obsessed with making money, always manages to have money and constantly chides his parents about the cost of things. So we all sent him cash with which his father opened an UGMA brokerage account and built a portfolio.
But NOW there is a simpler way.
Stockpile.com is a company that offers gift cards (like iTunes, Home Depot, Target, etc.) which enables you to buy a specific dollar amount of hundreds of stocks!
I am not endorsing this company as I have not made any purchases and cannot vouch for the process but I thought it important to make you aware of its existence. Here is what they offer:
- The ability to purchase the stock of hundreds of U.S. and international companies,
- Any amount of the gift - up to $1000. Whatever the amount will buy a certain number of full or fractional shares depending on the share price on the day the card is activated.
- Instant card delivery as they accept most credit cards.
- No cost to the recipient who may buy shares for the full amount of the gift but there is a gifting fee to the giver which pays the credit card fee and commission.
- A gift receipt which allows the receiver to choose a different company,
- A claiming notification to tell you when the gift stock has actually been claimed.
(Minors may own stock with a parent or someone over 18 in a Uniform Gift to Minors Account.)
A gift of stock makes a child curious especially if the stock is in a company he/she knows like Disney, McDonald's or KFC.
It takes the mystery and fear out of investing. It builds interest and confidence.
A gift card saves you from going through the pains of opening an UGMA brokerage account.
It might even make an interesting birthday or wedding gift for your friends!
Be $ Smart - start youngsters early in the stock market. It will pay a lifetime of dividends.