# The first grandchild is on the way



## gordon2007 (24 May 2015)

So the first grandson is on the way. Due in a few weeks. The Mrs is struggling for ideas on a baby shower gift. She wants to do something different than the old fashioned knitted jumper and is not a fan of gift cards.

I thought $250 worth of Telstra shares. Has anyone done this in the past? Whilst we do know the sex and name of the child, can you actually buy shares for someone who doesn't quite exist yet?

If so, how?


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## VSntchr (25 May 2015)

gordon2007 said:


> So the first grandson is on the way. Due in a few weeks. The Mrs is struggling for ideas on a baby shower gift. She wants to do something different than the old fashioned knitted jumper and is not a fan of gift cards.
> 
> I thought $250 worth of Telstra shares. Has anyone done this in the past? Whilst we do know the sex and name of the child, can you actually buy shares for someone who doesn't quite exist yet?
> 
> If so, how?




For starters, as far as I am aware the minimum parcel size is $500. As for buying shares for minors - they could be held in some kind of trust account? 
I was buying and selling before I was 18 - but that was all done in my fathers name. So there is ways to do it - you will just have to find what is most suitable for the situation.


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## christianrenel (25 May 2015)

VSntchr said:


> For starters, as far as I am aware the minimum parcel size is $500. As for buying shares for minors - they could be held in some kind of trust account?
> I was buying and selling before I was 18 - but that was all done in my fathers name. So there is ways to do it - you will just have to find what is most suitable for the situation.




I have also done this strategy for my children. I chosen stocks which have re-investment plans, so they always accmulating new units into the future.

The minimal purchae of shares in now $600 worth.

Kind Regards 

Christian Renel


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## pixel (25 May 2015)

gordon2007 said:


> So the first grandson is on the way. Due in a few weeks. The Mrs is struggling for ideas on a baby shower gift. She wants to do something different than the old fashioned knitted jumper and is not a fan of gift cards.
> 
> I thought $250 worth of Telstra shares. Has anyone done this in the past? Whilst we do know the sex and name of the child, can you actually buy shares for someone who doesn't quite exist yet?
> 
> If so, how?




Congrats, Gordon, and Welcome to the Club of Grand Parents! 

At the level your question seems to suggest, I doon't believe CGT concerns enter the picture, even if dividends may come into play. That being so, I would simply open a CHESS account in my own name with the qualifier "<Grandson#1 A/c>"
Then just buy and hold till the bub is 18 and transfer the accrued portfolio to him by way of Off-Market transfer. If you have concerns about your life expectancy, simply make a note of the arrangement in your Will and leave it to the Executor.

As my grandchildren live Overseas, I've found that arrangement the simplest for all concerned.


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## tech/a (25 May 2015)

Yes if all goes well I have a Grandson coming in July.
Congrats you old fogies!
I'm really happy about the Grand father thing---you can give em back.


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## gordon2007 (25 May 2015)

tech/a said:


> I'm really happy about the Grand father thing---you can give em back.





Too True


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## gordon2007 (25 May 2015)

This seems the way to go. Not really concerned about a minimum purchase amount so I'll just get whatever is required. 





pixel said:


> I would simply open a CHESS account in my own name with the qualifier "<Grandson#1 A/c>"
> Then just buy and hold till the bub is 18 and transfer the accrued portfolio to him by way of Off-Market transfer.


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## Value Collector (25 May 2015)

gordon2007 said:


> So the first grandson is on the way. Due in a few weeks. The Mrs is struggling for ideas on a baby shower gift. She wants to do something different than the old fashioned knitted jumper and is not a fan of gift cards.
> 
> I thought $250 worth of Telstra shares. Has anyone done this in the past? Whilst we do know the sex and name of the child, can you actually buy shares for someone who doesn't quite exist yet?
> 
> If so, how?




Have you thought about an index fund rather than a single stock?

the holding period is going to be very long, so a broad cross section of the market might be best or alternatively, a highly diversified company like Berkshire Hathaway, Berkshire doesn't pay dividends, so you won't have to worry about all the tax implications and hassle, just buy and hold until the kid needs to buy a house, never have to worry about accounting.

The very long  holding period basically takes most of the exchange rate risk away also.


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