Can Teens Have Stocks?

They may not be able to vote, legally drink, or even be old enough to get behind the wheel. However, teens can have some privileges when it comes to the stock market.

If parents choose to, they can open an investment account for their child or children. Here’s what they need to know:

Choosing the Right Account

It’s not as simple as going to a broker and saying you want to open an account for your child — parents should carefully consider the type of account and how the child will be involved in the investing process.

A good starting point for parents to consider when opening an account for their child is to determine the type of taxable income or wages the child currently has.

If the child is not earning any taxable income or wages, then a custodial brokerage account is probably the best option. The account will technically be the parents’ names, but once the child turns 18 or 21 (depending on state law), then they will be able to take full responsibility for the account.

If the child does have taxable income or wages, then a custodial IRA could be an option. A Roth IRA is especially a good idea for kids because contributions the child makes to the account will grow without having to pay any taxes. There is actually no age restriction when it comes to a child having a Roth IRA account; however, there is a contribution limit. Contributions must be $6,000 or the total of earned income for the year, whichever contribution is lower (for example, if a child makes $3,000 a year at a job, they can not contribute more than $3,000 into their Roth IRA).

Choosing the Right Broker

There are several brokers who will guide you and your child through the investment process. If you are already using a broker, you can ask if the company also manages child investment accounts and if they don’t, you can ask for their recommendation on a brokerage that does.

If your child has an investment account and you have concerns about where their money is going, contact the lawyers at Weltz Law. We’ve helped families make sure their money is protected and going where you want it to go. Our attorneys are advocates for your rights — reach out today for a free consultation.

Should I Hire a Lawyer Before I Invest in Stocks?

Investing in stocks has never been easier with apps that allow you to put money into the stock market on your own. But is it the best idea to begin investing without the proper representation?

What Does a Securities Attorney Do?

A securities attorney can make sure you and your investments are protected should you invest through a brokerage firm. If you are going through a broker, that broker has legal obligations including:

While it’s convenient to “play around” in the stock market through a stock app, if you are seriously considering investing in the stock market for your future, it’s best to go through a licensed brokerage firm and more importantly, have a securities attorney readily available.

What are the Benefits of a Securities Attorney?

There are several key benefits of hiring a securities attorney before you begin investing. The most significant benefit is that a securities attorney is the most knowledgeable in buying and selling stock. They will also support you should you have any investment dispute-related issues. These issues could include:

Another benefit of hiring a securities attorney is that they will represent you should your funds be mishandled. An example of this could be if the company you bought stock in committed actions such as investor fraud or insider trading. The securities attorney can represent you in a lawsuit and will fight for you to be reimbursed for lost investments.

When you need an experienced team of securities attorneys, contact Weltz Law. With more than 30 years of collective experience, our team knows the questions to ask to get you the answers you need and keep your money where it belongs. Contact our office today for a free consultation — (877) 905-7671.

877-905-7671
Follow Us
Main Office

1 Old Country Rd, Ste 275
Carle Place, NY 11514

Map & Directions
Boca Raton Office

By Appointment Only
980 N Federal Hwy #110
Boca Raton, FL 33432

Map & Directions
Rockville Center Office

By Appointment Only
5 N Village Ave 2nd Floor
Rockville Centre, NY 11570

Map & Directions
Beverly Hills Office

By Appointment Only
9171 Wilshire Blvd #500
Beverly Hills, CA 90210

Map & Directions
New York City Office

By Appointment Only
1441 Broadway 3rd Floor
New York, NY 10018

Map & Directions
Boca Raton Office
Map & Directions
Rockville Center Office
Map & Directions
Beverly Hills Office
Map & Directions
Main Office
Map & Directions
New York City Office
Map & Directions

Attorney Advertising | Prior results do not guarantee a similar outcome. The information on this website is for general information purposes only. Nothing on this site should be taken as legal advice for any individual case or situation. This information is not intended to create, and receipt or viewing does not constitute, an attorney-client relationship. This site is protected by reCAPTCHA and the Google Privacy Policy and Terms of Service apply.