A member wants his child to be a member of our club and act as the custodian. How would I set this up.
Bob Mann on
Very similarly to what you would do for a normal member, except that you should record the name as "X, Custodian for Y" with X being the member and Y being the child. Use the child's SSN. We added the following to our Partnership Agreement:
16C. Custodial Partner. Custodial partnerships for a minor child are allowed. The requirements of section 16 must be met if the Custodian is not already a partner. It is not a requirement that a Custodial Partner also be a regular partner. For all voting actions, a partner shall only have one (1) vote, regardless of the total number of accounts he represents. The periodic meeting of the month in which the minor child turns 18 shall be treated as receipt of request for full withdrawal.
Payout checks are made payable to the child.
Bob
> On November 13, 2014 at 7:09 AM RUSSELL WARD <russdward@gmail.com> wrote:
>
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> A member wants his child to be a member of our club and act as the custodian. How would I set this up.
Laurie Frederiksen on
Hi Russell,
I'm not sure if you or others are aware of the fact that the search box in the upper right corner of your screen is often very helpful to use when you have a question like this.
If you use it to search for the word minors, you will find additional discussions on this topic that have come up in the past. You might find them useful also.
Laurie Frederiksen Invest with your friends! www.bivio.com
On Thu, Nov 13, 2014 at 7:09 AM, RUSSELL WARD wrote:
A member wants his child to be a member of our club and act as the custodian. How would I set this up.
Kimberly Hazen on
This brings up something I've been wondering about. My daughter is very interested in our club and I was wondering if there are any all-kid clubs out there? I'd also like to have her explore some of the investing games online, but it would be fun for her to use real money.
Does anyone have any experience with this? Perhaps there are minors in your group?
On Thu, Nov 13, 2014 at 7:51 AM, Laurie Frederiksen <laurie@bivio.biz> wrote:
Hi Russell,
I'm not sure if you or others are aware of the fact that the search box in the upper right corner of your screen is often very helpful to use when you have a question like this.
If you use it to search for the word minors, you will find additional discussions on this topic that have come up in the past. You might find them useful also.
Laurie Frederiksen Invest with your friends! www.bivio.com
On Thu, Nov 13, 2014 at 7:09 AM, RUSSELL WARD wrote:
A member wants his child to be a member of our club and act as the custodian. How would I set this up.
Laurie Frederiksen on
It is important to understand that minors cannot enter into legally binding contracts. This would include agreeing to terms in a partnership agreement. So I suspect a brokerage might not agree to opening an account for a partnership that only had minors as members.
It's also important to understand that once a child reaches the age of majority, any amounts in a custodial account are no longer managed by the parent, they belong to the child. That is probably why Bob's agreement requires that the funds be processed as a withdrawal when the child turns 18. Otherwise, you'll automatically have a member in your club that hasn't agreed to any of the terms of your partnership agreement.
You could, then of course, allow them to join as an adult member. I imagine Bob's agreement was set up the way it is to allow the club to have the option to determine this on a case by case basis.
On Thu, Nov 13, 2014 at 10:10 AM, Kimberly Hazen <hazenfree@gmail.com> wrote:
This brings up something I've been wondering about. My daughter is very interested in our club and I was wondering if there are any all-kid clubs out there? I'd also like to have her explore some of the investing games online, but it would be fun for her to use real money.
Laurie Frederiksen Invest with your friends! www.bivio.com
I often read many comments but have never responded until now. Our Ohio investment club, SEMC Investors, is one of the oldest still operating. We started as NAIC investors in 1969. My father was one of the original members. My son started when he was about 21 but moved to Florida and took his money out at that time. I joined while my father and my son were still members. At that time we had about 20 members, but five were junior members, my grandson and granddaughter being two of them. (I started them in the club when they were 2 years old and put in $10 a month per child.) Two of the other junior members were children of one of the members. When they reached 18, one took out all the money and used it for college; the other started coming to the meetings as a voting member but pulled out a few years later to start up his own business. As junior members, they obviously were not allowed to vote; but they did come occasionally to certain party meetings...a summer picnic and a Christmas gathering. It was our way of getting them interested in saving money and understanding about the stock market. We no longer have any junior members, but it was a good experience for them. (Actually, one of the junior members would come to the meetings frequently with his dad and used the information he had learned to give a presentation to his classmates about investing when he was about eight years old...a sort of "Show and Tell" presentation. I understand the teacher was impressed.)
Sent from my iPad
On Nov 13, 2014, at 10:38 AM, Laurie Frederiksen <laurie@bivio.biz> wrote:
It is important to understand that minors cannot enter into legally binding contracts. This would include agreeing to terms in a partnership agreement. So I suspect a brokerage might not agree to opening an account for a partnership that only had minors as members.
It's also important to understand that once a child reaches the age of majority, any amounts in a custodial account are no longer managed by the parent, they belong to the child. That is probably why Bob's agreement requires that the funds be processed as a withdrawal when the child turns 18. Otherwise, you'll automatically have a member in your club that hasn't agreed to any of the terms of your partnership agreement.
You could, then of course, allow them to join as an adult member. I imagine Bob's agreement was set up the way it is to allow the club to have the option to determine this on a case by case basis.
On Thu, Nov 13, 2014 at 10:10 AM, Kimberly Hazen <hazenfree@gmail.com> wrote:
This brings up something I've been wondering about. My daughter is very interested in our club and I was wondering if there are any all-kid clubs out there? I'd also like to have her explore some of the investing games online, but it would be fun for her to use real money.
Laurie Frederiksen Invest with your friends! www.bivio.com
Thank you so much for taking the time to share your story about your family investment club. I interact with many many investors who developed their interest in investing because of experiences they shared with parents and grandparents. Your club is a great demonstration of why that is.
A family investment club is a wonderful opportunity to connect with family members on a regular basis and to ignite an interest in investing in younger family members.
We have many family clubs that use bivio. Even if members live in many parts of the US, it is now possible for their clubs to meet online most months. Having all of their club records online means everyone can easily access them.
Perhaps more of you who are already in clubs might consider starting clubs in your own families. We have one going in our household. It creates lots of interesting topics to discuss when we get together!
Laurie Frederiksen Invest with your friends! www.bivio.com
I often read many comments but have never responded until now. Our Ohio investment club, SEMC Investors, is one of the oldest still operating. We started as NAIC investors in 1969. My father was one of the original members. My son started when he was about 21 but moved to Florida and took his money out at that time. I joined while my father and my son were still members. At that time we had about 20 members, but five were junior members, my grandson and granddaughter being two of them. (I started them in the club when they were 2 years old and put in $10 a month per child.) Two of the other junior members were children of one of the members. When they reached 18, one took out all the money and used it for college; the other started coming to the meetings as a voting member but pulled out a few years later to start up his own business. As junior members, they obviously were not allowed to vote; but they did come occasionally to certain party meetings...a summer picnic and a Christmas gathering. It was our way of getting them interested in saving money and understanding about the stock market. We no longer have any junior members, but it was a good experience for them. (Actually, one of the junior members would come to the meetings frequently with his dad and used the information he had learned to give a presentation to his classmates about investing when he was about eight years old...a sort of "Show and Tell" presentation. I understand the teacher was impressed.)
I often read many comments but have never responded until now. Our Ohio investment club, SEMC Investors, is one of the oldest still operating. We started as NAIC investors in 1969. My father was one of the original members. My son started when he was about 21 but moved to Florida and took his money out at that time. I joined while my father and my son were still members. At that time we had about 20 members, but five were junior members, my grandson and granddaughter being two of them. (I started them in the club when they were 2 years old and put in $10 a month per child.) Two of the other junior members were children of one of the members. When they reached 18, one took out all the money and used it for college; the other started coming to the meetings as a voting member but pulled out a few years later to start up his own business. As junior members, they obviously were not allowed to vote; but they did come occasionally to certain party meetings...a summer picnic and a Christmas gathering. It was our way of getting them interested in saving money and understanding about the stock market. We no longer have any junior members, but it was a good experience for them. (Actually, one of the junior members would come to the meetings frequently with his dad and used the information he had learned to give a presentation to his classmates about investing when he was about eight years old...a sort of "Show and Tell" presentation. I understand the teacher was impressed.)
Sent from my iPad
On Nov 13, 2014, at 10:38 AM, Laurie Frederiksen <laurie@bivio.biz> wrote:
It is important to understand that minors cannot enter into legally binding contracts. This would include agreeing to terms in a partnership agreement. So I suspect a brokerage might not agree to opening an account for a partnership that only had minors as members.
It's also important to understand that once a child reaches the age of majority, any amounts in a custodial account are no longer managed by the parent, they belong to the child. That is probably why Bob's agreement requires that the funds be processed as a withdrawal when the child turns 18. Otherwise, you'll automatically have a member in your club that hasn't agreed to any of the terms of your partnership agreement.
You could, then of course, allow them to join as an adult member. I imagine Bob's agreement was set up the way it is to allow the club to have the option to determine this on a case by case basis.
On Thu, Nov 13, 2014 at 10:10 AM, Kimberly Hazen <hazenfree@gmail.com> wrote:
This brings up something I've been wondering about. My daughter is very interested in our club and I was wondering if there are any all-kid clubs out there? I'd also like to have her explore some of the investing games online, but it would be fun for her to use real money.
Laurie Frederiksen Invest with your friends! www.bivio.com