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  1. #1
    Junior Member
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    Oct 2014
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    15

    Default 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

  2. #2
    Senior Member
    Join Date
    Dec 2014
    Posts
    581

    Default

    Quote Originally Posted by alliswell View Post
    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!

  3. #3
    Senior Member
    Join Date
    Dec 2014
    Posts
    581

    Default

    Ps.. should this be in newbie or investment strategy threads?

  4. #4
    Guru
    Join Date
    May 2015
    Posts
    2,601

    Default

    Well of course I would have to recommend Heartland Bank (HBL)
    (Great dividend, great DRP)

    Disclosure: Heartland is my largest investment

  5. #5

  6. #6
    Member
    Join Date
    Feb 2015
    Location
    Auckland
    Posts
    181

    Default

    Quote Originally Posted by huxley View Post
    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!
    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?

  7. #7
    Member
    Join Date
    Apr 2014
    Location
    Christchurch
    Posts
    103

    Default

    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.

  8. #8
    Member
    Join Date
    Apr 2014
    Location
    Christchurch
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    103

    Default

    Quote Originally Posted by Absolute144 View Post
    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.

  9. #9
    Ignorant. Just ignorant.
    Join Date
    Jan 2005
    Location
    Wrong Side of the Tracks
    Posts
    1,587

    Default

    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 03:38 PM.

  10. #10
    Senior Member
    Join Date
    Dec 2014
    Posts
    581

    Default

    Quote Originally Posted by unhuman View Post
    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 07:01 PM.

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