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Junior Member
Shares in your daughters name??
Hi,
Just a few questions, if you may be so kind as to answer if you can....
I've been pulling $20 a week since about six months before she was born, into a bank account for her, though with the poor interest rates, starting to think about the market,,....I was thinking something boring and steady,...like property??
Firstly am I able to buy shares in my daughters name?? (6 yr old)...and secondly....
what would be a good investment for a long term,responsible divvie, (maybe even a share in lieu of cash deal) so apart from property, is there any others??
Cheers
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Originally Posted by alliswell
Hi,
Just a few questions, if you may be so kind as to answer if you can....
I've been pulling $20 a week since about six months before she was born, into a bank account for her, though with the poor interest rates, starting to think about the market,,....I was thinking something boring and steady,...like property??
Firstly am I able to buy shares in my daughters name?? (6 yr old)...and secondly....
what would be a good investment for a long term,responsible divvie, (maybe even a share in lieu of cash deal) so apart from property, is there any others??
Cheers
http://www.dividendyield.co.nz/hightolowdividend.php
Look for companies with DRP if you don't want to deal with cash dividends..
Or look at a managed fund (Index or active) or an REIT..
Just ideas!
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Ps.. should this be in newbie or investment strategy threads?
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Well of course I would have to recommend Heartland Bank (HBL)
(Great dividend, great DRP)
Disclosure: Heartland is my largest investment
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Member
Originally Posted by huxley
What the benefit of DRP as opposed to cash dividend other that not having cash not working or having to decide in what to reinvest in? Are there tax benefit of DRP over a cash divie?
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Member
Would reccomend that you look into a smartshares ETF(s) http://smartshares.co.nz/ on the basis that you can invest as a little as 50.00 per month which would suit your current 20.00 per week.
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Member
Originally Posted by Absolute144
What the benefit of DRP as opposed to cash dividend other that not having cash not working or having to decide in what to reinvest in? Are there tax benefit of DRP over a cash divie?
Answered your own question in that not having to manage what to do with the cash receipts / reinvest etc. No tax benefit to DRP.
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I used to buy the shares and then give them to my daughter by an off-market transfer.
She had two bank accounts, one for saving and one for spending. She was allowed to choose which account the dividend cheques went into. It's important to see the money coming in.
Also one lot of bonds with a fairly close maturity, so she decides what to do.
After a while, she learned that there were more places to put money than in the bank. Which was the object.
PS - Don't forget to do a tax return for her so she can carry the imputation credits forward as a loss.
Last edited by GTM 3442; 11-10-2016 at 04:38 PM.
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Originally Posted by unhuman
Answered your own question in that not having to manage what to do with the cash receipts / reinvest etc. No tax benefit to DRP.
No tax benefit although you do get to increase your holding without paying brokerage plus you dollar cost average into the investment..
HTH
Last edited by huxley; 11-10-2016 at 08:01 PM.
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