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October 25, 2021

How Old Do You Have To Be To Invest In Stocks?

We get often asked how old do you have to be to invest in stocks?

There is no specific age limit for investing in stocks but minors will need some help from their parents.

If you are interested in how to invest in stocks, you’ll have to open a brokerage account in your own name if you want to invest yourself, and you have to be 18-21 years of age depending on your state.

Younger investors have to rely on their parents or guardian to open a custodial or guardian account for them.

The parent or guardian can open a UTMA or UGMA custodial account for minors through most banks and stockbrokers. The parent can manage the account and make investments but the funds deposited in the account, as well as any income and capital gains, will legally belong to the child.

The money can legally be spent only for expenditures that benefit that child and the parent cannot withdraw the money on their own account or use it for themselves.

The parents and family can deposit up to $15,000 (or $30,000 for married couples) per year into these accounts tax-free. Minors can deposit their own money into the account as well.

Depending on your state, the minor will gain full legal control of their account around the ages of 18-24.

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    Last Updated: October 25, 2021

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