UnThreaded | Threaded | Whole Thread (5) | Ignore Thread Prev Thread | Next Thread
Author: ACVC Add to my Favorite Fools Ignore this person (you won't see their posts anymore) Number: of 75797  
Subject: custodial IRA Date: 10/11/1999 8:42 PM
Post New | Post Reply | Reply Later | Create Poll . Report this Post | Recommend it!
Recommendations: 0
Having trouble finding a online discount broker to transfer two custodial accounts for my sons ages 9-10, currently in CD accounts at local bank.Any advise,Thanks
Print the post Back To Top
Author: AlyKat Three stars, 500 posts Old School Fool Add to my Favorite Fools Ignore this person (you won't see their posts anymore) Number: 14432 of 75797
Subject: Re: custodial IRA Date: 10/11/1999 11:31 PM
Post New | Post Reply | Reply Later | Create Poll . Report this Post | Recommend it!
Recommendations: 1
Having trouble finding a online discount broker to transfer two custodial accounts for my sons ages 9-10, currently in CD accounts at local bank.

I have recently transferred my brokerage account to a Waterhouse webBroker account. You might want to check them out if you haven't already. http://www.waterhouse.com

~AlyKat

Print the post Back To Top
Author: TMFPixy Big gold star, 5000 posts Add to my Favorite Fools Ignore this person (you won't see their posts anymore) Number: 14435 of 75797
Subject: Re: custodial IRA Date: 10/12/1999 8:38 AM
Post New | Post Reply | Reply Later | Create Poll . Report this Post | Recommend it!
Recommendations: 0
Greetings, ACVC, and welcome. You wrote:

<<Having trouble finding a online discount broker to transfer two custodial accounts for my sons ages 9-10, currently in CD accounts at local bank.Any advise.>>

Other than to keep searching, I can't offer any help. Many (if not most) IRA providers are highly reluctant to act as the custodian for a minor's IRA even though it's perfectly legal for a minor to have one. (I understand that Vanguard does, but their brokerage fees are higher than a discounters.) That's because minors cannot enter into a binding contract, and an IRA custodial agreement is a contract. All you can do is to keep on looking. I wish you luck in the search.

If you find a discount broker who will accept the IRAs, please come back and tell us so others in your situation can benefit.

Regards..Pixy

Print the post Back To Top
Author: DownwardSpiral One star, 50 posts Add to my Favorite Fools Ignore this person (you won't see their posts anymore) Number: 14442 of 75797
Subject: Re: custodial IRA Date: 10/12/1999 11:41 AM
Post New | Post Reply | Reply Later | Create Poll . Report this Post | Recommend it!
Recommendations: 0
Pixy replied to ACVC:

<<<<Greetings, ACVC, and welcome. You wrote:

<<Having trouble finding a online discount broker to transfer two custodial accounts for my sons ages 9-10, currently in CD accounts at local bank.Any advise.>>

Other than to keep searching, I can't offer any help. Many (if not most) IRA providers are highly reluctant to act as the custodian for a minor's IRA even though it's perfectly legal for a minor to have one. (I understand that Vanguard does, but their brokerage fees are higher than a discounters.) That's because minors cannot enter into a binding contract, and an IRA custodial agreement is a contract. All you can do is to keep on looking. I wish you luck in the search.

If you find a discount broker who will accept the IRAs, please come back and tell us so others in your situation can benefit.

Regards..Pixy >>>>

First, I wasn't sure that this was an IRA except by the title of ACVC's message. If this is NOT an IRA, this is a whole different kettle of fish.

Second, my full-service broker has told me that he has several IRA accounts for minors. I don't believe that this is unusual based on what he says. My impression, open to correction by all of the legal gurus out there, is that the holding entity is the custodian of the funds (often the banking arm of the brokerage firm), similar to the parent or other custodian in UGMA accounts.

Last, here is how I tackled the situation:
--If you call up the discount brokers, they will say "no way". They don't want to mess with it. So, get all the forms, fill them out [with truthful & honest ages & birthdates] and send them in WITH A SIZABLE (above minimum account opening amount) CHECK. I'll wager that [Waterhouse & some others] they will cash that check immediately, and send you the account opening documents.

--Then, and only then, fill out the form for trading authority for the parent to invest in vehicles other than money-market accounts.

I would anticipate that not much "trading" will be done over the first few years anyway; probably just a few "investments" until the balance builds up.

Hope this helps. I've followed this strategy for two children, and although the account rep shakes his head & clucks his tongue when talking on the phone about the minor's account, they have yet to turn down a chek or close an account once it is open. Typically, I guess, the accounts are opened for a kid with a first job at, say, 16; opened when they are 17; so there is only a year or two until they become of age anyway.

Post New | Post Reply | Reply Later | Create Poll . Report this Post | Recommend it!
Print the post Back To Top
Author: ratfur Add to my Favorite Fools Ignore this person (you won't see their posts anymore) Number: 14475 of 75797
Subject: Re: custodial IRA Date: 10/13/1999 12:01 AM
Post New | Post Reply | Reply Later | Create Poll . Report this Post | Recommend it!
Recommendations: 0
I had Waterhouse and Ameritrade both send me application forms. I liked Ameritrade better. They have no charges for setups when you transfer accounts. They send you so much info there are no questions left to ask. 1-800-276-8746

Print the post Back To Top
UnThreaded | Threaded | Whole Thread (5) | Ignore Thread Prev Thread | Next Thread
Advertisement