“Stocks: The Gift that Keeps on Giving! Learn How to Present the Gift of Stocks.”
Why not try something new and unique for a change this coming holiday season? Instead, why not give stocks? While other gifts can lose their value or interest over time, stocks have the potential to grow and provide returns. Every time they check their investment and see it rise, they will thank you.
When you give stocks, you are not only giving them a financial asset but also a way for them to learn about investing. By giving them the stocks, they are actually a part owner of the company and can know how to buy and sell and watch the value of their investment rise.
So how do you go about giving these unique gifts? It’s quite simple! You can even open a brokerage account in their name or buy the shares in your name and transfer them to them at a later date, so that they can benefit from the financial growth as well as the educational process that comes with investing.
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The Benefits of Giving Stocks as a Gift: A Practical and Long-lasting Present
So, why not opt for the traditional gifts and rather try stocks? They are useful and can continue to produce income for your loved ones. With giving stocks, you are giving them something that could appreciate in value over the years.
This is because stocks offer a way into the investing world, which many people may not have much interest in. With your gift, you are not only giving them an asset but also encouraging them to manage their finances and learn more about the financial market. This means you are also encouraging them to be financially independent!
So how can you give stocks? First, you need to set up a brokerage account. First, choose a platform that is easy to use and has low fees, and then choose the right stocks for the recipient’s interest and investment goals.
How to Choose the Right Stocks to Gift: Tips and Considerations
When it comes to gifting stocks, it is better to understand what the loved one is interested in. Do they like technology? Then perhaps they will be interested in stock in a technology company. Another factor to consider is the level of risk; for the cautious type, safer blue chip stocks are recommended.
Also find out what they are hoping to achieve with their financials as well. If they are looking to achieve a specific goal then the stocks should be directed towards meeting that goal. Buying good performing stocks will only make the gift even better.
Step-by-Step Guide: How to Give Stocks as a Gift
- Choose the Right Stock: This is done based on their interests.
- Open a Brokerage Account: It is required to hold the stocks.
- Fund the Account: Transfer the amount required to buy the stock.
- Purchase the Stock: The platform is then used to buy the selected stock.
- Transfer the Stock: It is important to make sure that it gets to the recipient’s account.
- Present the Gift: Make it even more special by writing a note and they will certainly value it.
Tax Implications of Gifting Stocks: What You Need to Know
It is always important to know the tax consequences of giving away assets before doing so. The sale of stocks can be considered a taxable event and both the donor and the recipient of the stocks may have to pay tax on the value of the stocks.
If the stock has increased in value, you may have to pay capital gains tax on the difference between the price you acquired the stock and the price you gave it away. However, the recipient will not pay taxes on the stocks until they trade them in. On the other hand, losses are sometimes allowed to reduce your return.
Please remember the annual gift tax exemption, which means that an individual can give up to $15,000 to a recipient without the gift being taxed. Therefore, plan ahead!
