Stockbrokers that accept 16 y/os // where to invest 200k? (1 Viewer)

[xetamine]

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[Rhinoz8142]

Hi, I'm new here and am looking to see if anyone's in a similar position.

Thanks to buying some Bitcoins early in 2011, I now have a sizabe amount of bitcoins which are worth a lot. I plan on diversifying and selling some, and I will end up with $200k post-tax to invest.

Investing in the stock market is an obvious option, but I can't find any online stock brokers that would service minors (probably due to contract law and minors).

(1) Are there any non advisory stock brokers that service minors?
(2) In the absence of that, where to invest $200k as a 16 y/o?

Some points:
No, my parents are no help -- (1) taxation issues and (2) they're not very good at financial management.

Thanks!

CommSec provides those Online broker, but you have to become 18. Sorry !..

Wait for 2 years !, stocks really the other option to invest in ?, isnt there something else ?

 

[OzKo]

CommSec provides those Online broker, but you have to become 18. Sorry !..

Wait for 2 years !, stocks really the other option to invest in ?, isnt there something else ?

People under 18 can use Commsec provided that a parent or guardian is linked to the account IIRC.

 

[Rhinoz8142]

People under 18 can use Commsec provided that a parent or guardian is linked to the account IIRC.

Really, r u srs.

ha ! how about that.

 

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[Flop21]

Please don't put all of that into stocks.

Just put it in a long-term savings account. See example (Or even if you leave it there 5 years till you're 21, that's over 30k in interest you've gained!)

Easy and safe!!!

I guess if you want after 2 years (when you're 18) you could then start investing in the stock market, but I would not be putting all my life savings into it, maybe just a small percentage. Even if just 10k, which is still a lot.

 

[xetamine]

Just put it in a long-term savings account. See example (Or even if you leave it there 5 years till you're 21, that's over 30k in interest you've gained!)

You're forgetting income tax. Let's say the 3.9% term deposit from ING direct, in the 37% tax tier + medicare levy:

200000*(1+(0.039*0.61))^2 = 209629.19282

Looks decent? Let's add the latest inflation figure of 2.7%:

200000*(1+(0.039*0.61)-0.027)^2 = 198718.06

By putting it in a bank for 2 years, I would have lost $1200 in 2015 dollars.

Whereas passive investing into ASX 200 2 years ago would have net you $6158.1 post-tax plus any dividends. This is because you can apply the long term capital gains discount of 50%, which halves the tax you have to pay - only 19.5% now instead of 39%.

 

[Flop21]

You're forgetting income tax. Let's say the 3.9% term deposit from ING direct, in the 37% tax tier + medicare levy:

200000*(1+(0.039*0.61))^2 = 209629.19282

Looks decent? Let's add the latest inflation figure of 2.7%:

200000*(1+(0.039*0.61)-0.027)^2 = 198718.06

By putting it in a bank for 2 years, I would have lost $1200 in 2015 dollars.

Whereas passive investing into ASX 200 2 years ago would have net you $6158.1 post-tax plus any dividends. This is because you can apply the long term capital gains discount of 50%, which halves the tax you have to pay - only 19.5% now instead of 39%.

Could you explain this to me? I'm just trying to learn.

So what's the 0.61 number you are multiplying in the first equation? And secondly, why would inflation affect you if it's sitting in a bank account? Thanks

 

[Chronost]

Could you explain this to me? I'm just trying to learn.

So what's the 0.61 number you are multiplying in the first equation? And secondly, why would inflation affect you if it's sitting in a bank account? Thanks

0.61 is the amount that isn't taxed. And inflation affects everyone, he's losing money if he's not putting it in the bank(not physically but his overall purchasing power), he's deducting whatever he'll lose from inflation to net him the actual real percentage he would be earning from the bank.

 

[Chronost]

Hi, I'm new here and am looking to see if anyone's in a similar position.

Thanks to buying some Bitcoins early in 2011, I now have a sizabe amount of bitcoins which are worth a lot. I plan on diversifying and selling some, and I will end up with $200k post-tax to invest.

Investing in the stock market is an obvious option, but I can't find any online stock brokers that would service minors (probably due to contract law and minors).

(1) Are there any non advisory stock brokers that service minors?
(2) In the absence of that, where to invest $200k as a 16 y/o?

Some points:
No, my parents are no help -- (1) taxation issues and (2) they're not very good at financial management.

Thanks!

This just got to me hahahah, in all honestly if this is a real question you're best to go to a financial advisor with your money, in addition a tax accountant is a good idea too for real advice. Even if this is troll, this would be an interesting situation.

I'm pretty sure parents can buy stock under some joint minor thing where you can invest and not pay tax, though i think there's a limit for it.

 

[RishBonjour99]

You're forgetting income tax. Let's say the 3.9% term deposit from ING direct, in the 37% tax tier + medicare levy:

200000*(1+(0.039*0.61))^2 = 209629.19282

Looks decent? Let's add the latest inflation figure of 2.7%:

200000*(1+(0.039*0.61)-0.027)^2 = 198718.06

By putting it in a bank for 2 years, I would have lost $1200 in 2015 dollars.

Whereas passive investing into ASX 200 2 years ago would have net you $6158.1 post-tax plus any dividends. This is because you can apply the long term capital gains discount of 50%, which halves the tax you have to pay - only 19.5% now instead of 39%.

Optiver/GS Trading would pay so much for you.

On a serious note, if you actually have 200k, don't put it all in the stock market - trading home alone. As a 16 yo kid with raging testosterone, you are likely to lose your shit. Let your parents buy some mutual fund units.


note: probably troll - use Whirlpool if srs.

 

[xetamine]

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[xetamine]

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[Flop21]

Yeah, I will soon. My main question is if there's any brokers that will service someone under 18, and I guess that's no.



What's so unbelievable about hearing about Bitcoin in 2011, putting a few hundred bucks into it, and now having a nice sum? It's rare, but in no way extraordinarily. Quite boring actually.



I won't have to pay tax, but my parents would.

(1) 49% bracket since it's my parents, instead of a lower bracket if it's considered my income.
(2) My parents are not very responsible with money, hence some significant counterparty risk.

Wow, I wish I lived in a world where 200k was boring at age 16.

 

[turntaker]

Hi, I'm new here and am looking to see if anyone's in a similar position.

Thanks to buying some Bitcoins early in 2011, I now have a sizabe amount of bitcoins which are worth a lot. I plan on diversifying and selling some, and I will end up with $200k post-tax to invest.

Investing in the stock market is an obvious option, but I can't find any online stock brokers that would service minors (probably due to contract law and minors).

(1) Are there any non advisory stock brokers that service minors?
(2) In the absence of that, where to invest $200k as a 16 y/o?

Some points:
No, my parents are no help -- (1) taxation issues and (2) they're not very good at financial management.

Thanks!

I bought many dogecoins in the hopes that it would become the world dominating currency but now I am broke.

Im jelly bro

 

[Cleavage]

Optiver/GS Trading would pay so much for you.

On a serious note, if you actually have 200k, don't put it all in the stock market - trading home alone. As a 16 yo kid with raging testosterone, you are likely to lose your shit. Let your parents buy some mutual fund units.


note: probably troll - use Whirlpool if srs.

I'd probably spend most of my time masturbating to the 200k

 

[Cleavage]

purchase ZWD, I hear Mugabe is finally getting his shit together

 

[xsaber]

lol how dus this work? what is bitcoin and how did ya get 200k?

 

[seremify007]

1. Are you really in the 37% marginal tax bracket? If so, you must have a lot of other income streams!
2. Of course putting money in term deposits or internet savings accounts won't be much better than inflation especially when you are looking at those maturities.
3. If you are really trying to seek similar returns to the equities market, then just invest in an index linked fund/instrument.
4. From experience, I tried to forecast my income form other sources over time and ensure that the timing of when I need to recognise income for tax purposes fell in periods where my non-investment income was lowest. You might want to consider something similar given (presumably) it will be a while before you start earning bigger bucks from other more regular/normal sources?

 

[xetamine]

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