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August 3, 2022

How Old Do You Have to Be to Invest in Stocks?

We are often asked, “How old do you have to be to invest in stocks?”

While there is no specific age limit for investing in stocks, minors will need some help from their parents or guardians.

Depending on your state of residence, you must be 18-21 years old to open an account that can invest in stocks. To do so, you’ll have to open a brokerage account in your own name.

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. However, 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. The parent cannot withdraw money from the account with the purpose of using it for themselves.

For 2022, parents, family, and friends can deposit up to $16,000 (or $32,000 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 between the ages of 18 and 25.

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Financial information reviewed byRoss Loehr - CFP®, MBA
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Last Updated: August 3, 2022

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