1/14/2024 0 Comments Stockpile gift![]() ![]() It’s not a huge deal, but once these gift cards are purchased, they are basically bearer securities until they are deposited into your account. If crooks see you purchase $200 worth of gift cards, they know you are basically carrying $200 of cash out of the store. ![]() If you create a joint account with a child, it is a true custodial account. The custodian is technically responsible for paying taxes on their capital gains and dividends. Stockpile provides access to a tax form, but this could add some extra complexity to your Form 1040.Every gift card amount must be invested in a single security. For instance, if you purchase a $50 gift card, you cannot invest $25 in one stock and $25 in another. You’d have to purchase two $25 gift cards for that option.As the purchaser of the gift card – you are how Stockpile is making money. For instance, when you purchase a $25 gift card, it is likely to cost you $29.95. A $50 gift card is a slightly better deal since it only costs you $56.95. Regardless, you are paying more so your recipient can invest the full gift card amount. It’s worth noting that after you have created your account, you can link it directly to your bank account for deposits and withdrawals. Funding your Stockpile account in this way allows you to avoid the “gift card” fees, but you still pay 99 cents per trade.Once money is deposited, the commissions for trades are very low (99 cents per trade). However, since the dollar amounts being bought and sold are very small, the commission could easily be a profit killer if it wasn’t so low. In my opinion, Stockpile’s commission charges are reasonable.It’s website and app are extremely user-friendly. The options, graphs, and forms provided are just the right amount for kids.It is a fantastic tool for teaching kids about investing. Emily had no knowledge or interest in investing until Stockpile, but now we talk about it every time we see each other.In the days and weeks that followed, Emily checked her account everyday (or at least most days) and she kept me posted on her investment. She loved seeing her money grow! Her interest even prompted the teacher in me to explore more advanced topics with her. She and I began to talk about her percentage rate-of-return and the benefits of not carrying all of her eggs in one basket. In fact, later, when she received her second gift card, I asked her if she wanted to invest that amount in Disney too? She responded by asking: “What if my basket drops!?!” With a huge smile on my face, we selected the Hershey logo for her second investment. With Emily’s iPad, I downloaded the Stockpile app, and her dad and I created an account that was in both his and her name. Just like with real stock, a minor cannot have a Stockpile account without a custodian.Īs soon as the account was set-up, Emily and I deposited her gift card money by entering the appropriate code (which is concealed on the back of the card). Once deposited, we had “cash” in her account that she could use to invest in just about any stock she wanted. After just a few moments, Emily decided she wanted to own stock in Disney. We tapped the Disney logo and within seconds, Emily was a shareholder in one of her favorite companies. Upon seeing the gift cards, I was immediately intrigued and purchased one for my niece, Emily, who is nine years old. Obviously, this gift required a little explanation, but when I presented it to her, she was so excited as to be visibly nervous about it. When you were a child, did you ever receive a savings bond as a birthday present? It’s probably a little odd, but I used to love receiving bonds as presents. I’ve always enjoyed investing, and as a child, I knew those $50 savings bonds were going to make me “rich” in the future.įast forward to 2017… In our current interest rate environment, today’s savings bonds aren’t going to make anyone “rich”. The current rates of return are a joke, and as someone who is still really into investing, I just can’t make myself give my nieces and nephews such terrible investments.Ī company called “Stockpile” has created gift cards (typically in denominations of $25, $50, and $100) that can be purchased at the gift card displays in many popular stores. A Stockpile gift card allows the bearer to purchase hundreds of different stocks, commodities, and/or exchange-traded funds, including Apple, Amazon, Tesla, Gold, or an S&P 500 index. Further, it doesn’t matter if a single share’s price is above the gift card amount. Stockpile allows you to purchase fractional shares. And as they say on their website ( “do you know what you call someone who owns a fraction of a share?” - A stockholder! ![]()
0 Comments
Leave a Reply. |
AuthorWrite something about yourself. No need to be fancy, just an overview. ArchivesCategories |