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Joel1st

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18 March 2009
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Hello.

I'm just wondering if anyone can help me out..

I've saved up a little over $5000 (enough to create a commsec account).. but it says I'm too young, I must be 18, and I'm only 16.

I asked my dad If I could do it in his name, and he said I could.. but I'm afraid I will be taxed dependent on his wage.. (I'm not earning over $5000 a year, so I'm not paying any tax)..

If I could get any help on what I could possibly do it would be great. (I would prefer to use commsec)

Thankyou,
Joel.
 
Re: Start investing..

Your presuming profit!

Dads probably smarter than he looks and sees a tax deduction coming his way.
 
Re: Start investing..

Joel1st said:
Well isn't the objective to buy low, and then wait till it rises?
Click to expand...

Yes but how long are you willing to wait? What if it never rises? ;)

Seriously though, do a search for similar threads in the beginners lounge, there are a lot of them. The search function is your friend.

Oh and welcome to ASF, good to see your thinking about your future at an early age :)
 
Re: Start investing..

prawn_86 said:
Yes but how long are you willing to wait? What if it never rises? ;)

Seriously though, do a search for similar threads in the beginners lounge, there are a lot of them. The search function is your friend.

Oh and welcome to ASF, good to see your thinking about your future at an early age :)
Click to expand...

Thanks for the kind welcome.. I haven't managed to find any threads yet.. but I'll keep searching.
 
Re: Start investing..

Joel1st said:
Well isn't the objective to buy low, and then wait till it rises?
Click to expand...

i would be thinking that the age you are at you will have need for money for other things in the near future , whether it be purchasing a car , buying a house ,business or maybe paying for an education.

my thoughts ...........investment is a long term objective 5..10..15 years

i would only be putting money into the market that you will not need for that period of time . no good putting money into a market which may lose value when it could have been used to more benefit to help pay off a loan or other.
 
You cannot buy shares if you are under 18 because of legal implications. For example you may owe money to your broker and then walk away from the contract as you are under 18 and cannot be bound by the contract. For this reason you cannot buy/sell shares or enter into any large contracts with banks.

If i were you; spend the next 2 years getting educated, trading demo accounts or paper trading and learning to trade correctly.

I asked my dad If I could do it in his name, and he said I could.. but I'm afraid I will be taxed dependent on his wage.. (I'm not earning over $5000 a year, so I'm not paying any tax)..
Click to expand...

I think im fairly qualified to answer this question. What i say though is not financial advice and you really should do your own research.

It is of my knowledge that you will not be taxes dependent on your fathers wage. I have done 1000's of tax returns and never come accross anything like this (assuming im right).

If the shares are in your fathers name, tax credits, capital gains and dividends will all be in his name and his tax return. This does not mean any money has to change hands for you. Once he is taxed on the money it doesn't matter to the ATO what he does with it. He could go buy 50 cartons of beer or give you the money, no difference.

Any income from shares in your fathers name should not be included in your tax return.

What i have said above does not contitute financial advice. Should you require to validate what i have said or take the issue any further then this site may be of assistance; http://www.ato.gov.au/
 
Thanks for the advise guys.. My plans are to keep learning and earning over the next two years.
 
Joel1st said:
Thanks for the advise guys.. My plans are to keep learning and earning over the next two years.
Click to expand...

Wow that was just like me only that I was 18 back in 2005... In all honesty when there is a depression (That's what I think USA are in) the best thing you can do is study... I haven't traded since 2007... I've made more money from the interest in my bank account than what the market would have that's for damn sure... I would actually have been in a $60,000 Min. debt If I hadn't pulled my CFD's out til this day (A product used for leveraging)... I offer you the most encouragement... It's the best thing to get into... :) Kudos...

I'm happy to sit back and watch everything go to crap... :D
 
Joel1st said:
Hello.

I'm just wondering if anyone can help me out..

I've saved up a little over $5000 (enough to create a commsec account).. but it says I'm too young, I must be 18, and I'm only 16.

I asked my dad If I could do it in his name, and he said I could.. but I'm afraid I will be taxed dependent on his wage.. (I'm not earning over $5000 a year, so I'm not paying any tax)..

If I could get any help on what I could possibly do it would be great. (I would prefer to use commsec)

Thankyou,
Joel.
Click to expand...

Joel,

1) Beamstas is correct. Because you are under the age of 18 you cannot be legally bound under contract law. Hence no one will allow you to purchase securities in your own name, and they must be purchased on your behalf, in trust. All capital gains or losses (if sold), dividends and franking credits will be applied to your trustee. Eg Mr Joe Blow ATF (Joel Blow) (ATF=As Trustee For)

2) Congratulations on beginning your education into matters financial at such a young age. Bravo!! You've begun a Journey that will take the rest of your life. I highly encourage you to look at the thread in my signature. If you have any questions do not hesitate to ask them in the thread.... I also encourage you to read a lot, practice a lot (either with a paper version rather than with real money or via the ASX sharetrading game), and self examine soundly.

Similarly to yourself I worked a few jobs during high school and saved my money instead of partying, was fortunate enough to find someone to guarantee on a loan, and purchased my first piece of property at the age of 18 years and one month. Hopefully with some encouragement you too might be a card carrying member of Garpals thread.

Good Luck

Sir O
 
Hi Joel,

I bought shares when I was 12, Its pretty straight forward, on the commsec forms you can select that it is for someone under 18 (in trust for) then you can deposit the money into your account and buy the shares you wish.

Your dad will just have to sign the documents. Any statements that get sent then just read Mr First Name Surname (in trust for Mr Joel Surname)
 
Sir Osisofliver said:
Joel,
Similarly to yourself I worked a few jobs during high school and saved my money instead of partying, was fortunate enough to find someone to guarantee on a loan, and purchased my first piece of property at the age of 18 years and one month. Hopefully with some encouragement you too might be a card carrying member of Garpals thread.
O
Click to expand...

How much were you able to save to get your first property at that age??
why didnt you consider shares instead? and how did you mange the loan repayments?/
 

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