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Junior NISA replacement

Posted: Mon May 13, 2024 1:37 pm
by Goldenhand
Hello everyone,
Now that Junior Nisa is gone, what would be the best way to invest in my kid’s future? He’s 4 now. Thinking in doing monthly contributions into a mutual fund until he comes of age.
Can I open a broker account in his name?
Thank you!

Re: Junior NISA replacement

Posted: Mon May 13, 2024 1:57 pm
by RetireJapan
Yes, but consider maxing out your own NISA first.

Children can have 未成年 broker accounts.

Re: Junior NISA replacement

Posted: Mon May 13, 2024 4:05 pm
by Goldenhand
未成年 broker accounts. Nice!
Maxing out my own lifetime contribution limit? Why?

Re: Junior NISA replacement

Posted: Tue May 14, 2024 2:21 am
by RetireJapan
Goldenhand wrote: Mon May 13, 2024 4:05 pm 未成年 broker accounts. Nice!
Maxing out my own lifetime contribution limit? Why?
未成年 accounts are taxable, and if you give the money to your children it is theirs. More control, fewer taxes if you invest it in your NISA.

You can always give them the money later if you choose to.

Re: Junior NISA replacement

Posted: Tue May 14, 2024 5:47 am
by Goldenhand
Oh! Didn't know accounts for minors were taxable. Was hoping they had a new mini-NISA or similar :D . Makes sense.
Thanks so much the advice, Ben!