Did you know that those kids that start investing under the age of 18 turn out 3-5x more successful than their peers?
If you are someone that realizes the amazing opportunities investing can bring and realize that the ones making money aren't just the Wall Street traders you see on TV, then you are on the right track. You have probably had an investing idea too but just didn't know how to act on it.
Well, there is a way you can invest in stocks while Under 18
The answer?
Custodial Accounts.
With a custodial account, any parent, friend or relative can open a custodial brokerage account for a minor. The person that opens the account, known as the custodian, controls the account on your behalf. While the adult has ultimate control, you now have the opportunity to execute on that investing idea of yours and if things go well, you can take control of that account once you reach the age of majority in your state. For more on custodial accounts, check out this article here.
Why is this better than waiting until I become an adult?
Experience.
Whether you make money or not, making your first investment at say, 14, versus when you turn 18 can make a huge difference. Formulating an investing idea and putting those ideas into action allows you to learn through doing and with four years of experience in the financial markets before you become an adult, you are increasing your probability of being a successful investor in the long-term.
Read more here: How old do you have to be to use Robinhood
Think about it.
How many great athletes do you know started playing their respective sport when they became an adult?
We personally cannot think of a single one. Like everything, it is always better to start early, and this is not any different with investing. The interesting thing here though, is that while you gain a ton of experience with investing and the financial markets in general, you also learn a great deal about personal financing. The markets teaches you how money works and you can take these principles and apply them to your personal savings and expenses. Pretty great, right?
So, you want to invest in stocks under 18?
That is great to hear. You’re taking the first step in creating the life you want for both and your family and it’s clear you want to learn. That is why we, at Loved, offer the perfect solution to both your financial and educational needs.
Through our platform and with as little as $5, you can start investing (commission-free) and start your journey with the custodial account we offer. We want to make it as easy as possible to start on your path to building financial wisdom through removing the usual barriers to entry. Through our interactive app, we want to build you into the investor you were born to be by providing the necessary tools to succeed.
Learn, grow, and build with Loved - Signup here
