It is said that the hardest part of investing is getting started. It is necessary to make practical arrangements and choose an investment target. I have noticed that the experience is reminiscent of starting an avant-garde swim. Exciting and thinking, no matter how you know that a new hobby would do good in the end. And when first experienced, the feeling is even ecstatic.
Wouldn’t such an intangible gift of experience in its own way be a great Christmas gift?
Unfortunately, this gift idea has not been made very easy to implement. Where it is perfectly permissible to sell Christmas-decorated scratch cards, which are very likely to win nothing but lose the capital invested by the donor, the giving of investment products is not just about successful.
Banks have not deliberately made it difficult to give investment gifts. The culprit is regulation that doesn’t bend to the fact that another person can only buy stocks or fund shares.
It is a matter of concern that the person starting the investment lacks the means to enter into an agreement with the bank in person. It is not possible to open a stock custody account or even a fund investment necessary for investing on behalf of another person.
If the gift recipient’s instruments are in order, the investment gift can make an exceptional amount of financial sense. Experienced investors and lovers of tax optimization know that the smartest thing to do is give a bunch of stock-worthy stocks in your portfolio. With this const, you can save a lot in taxes when the time to sell your shares comes. The practical handling of the donation depends on the bank. Some offer downloadable gift books, others require a visit to the office. There will be effort, and also expenses, so it is not worth giving a stock gift worth a few dozen or even hundreds. Unfortunately, the tip is usually only useful for long-term stock enthusiasts or those lucky enough to buy a price rocket like Tesla at a low price. The giver of such a gift should also keep in mind any gift tax.
How would you inspire your spouse or even a friend to invest? If the thing is familiar to you, the simplest is to build a gift that consists of some kind of symbolic gesture (Stock Savers Membership, Investment Specialty, Investment Book …) and attach to it as a friend a promise of hospitality during the Christmas holidays and a little money to start the job. When the recipient of the gift, with his or her own online banking ID, is involved in opening the necessary accounts, the task goes smoothly.
The surprise isn’t that perfect, but it can be a good thing. Most people want to start investing the most by having a trustworthy person show you how it works. By doing so, the recipient of the gift will also be able to influence what the first investment is. In my experience, a smart choice is usually one that interests you, even if it’s not the most investment doctrine.
There is one group of people for whom giving investment gifts is relatively easy in practice, and that is their own minor children. The consent of both guardians is required, but once it exists, the account required for the placement can be opened on behalf of the child and the purchases made there as well. At this point, the choice of an investment target is probably the most thoughtful. I would choose a low-cost index fund for a small child, something for a bigger one that might interest him or herself.
If you don’t have any experience with investing yourself, giving an investment gift certainly sounds awfully complicated. No worries. The gift idea is good for next year as well. Start by yourself first and you will have a successful gift giving next year.