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Online Share Trading

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emperor asset management

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guru
Contributor
I wanted to open an account for my kids as they would like to purchase shares. they are 6 and 8 years old. however no one allows an account to be opened for a minor. i have to open it in my name and it will be subject to my tax rate. anyone know of any way i can get them invested at such a young age? even easy equities don't allow this. it will only be a few thousand a year as my kids are still small and hold on to all their savings and birthday money. also emperor asset management said they were able to do this. a bit scared as they are not well known. anyone heard of them?
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12 REPLIES 12
THRESHOLD
Super Contributor
A Trust - talk to an attorney / accountant / tax consultant.
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Not applicable
Ive seen several presentation of Emperors. In fact going to another one at the Ritz tomorrow. I am quite happy to put some money with them. Also looking at opening accounts for each of my Preschool Nephews. I wont go and put all my money with them, but they seem to be knowing what they are doing. Good performance record at least. Then again, Past performance is no indication of future performance and being a Hedge Fund always has added risks. So yeah. They're quite new, but been through the 2008 massacre and survived so Im going to allocate some funds of my fund as well as some for the nephews. Worst case scenario it under performs the benchmark or even go bust. Best case they retire at 30. We'll see.
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guru
Contributor
Thanks for the info. I was a bit scared because i never heard of them. You always here of scams and people losing money.
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Not applicable
A trust is not worth it for a couple of thousand rand. Absolute mission to maintain and anything less than 1bar, IMO, is not worth going down this route. Just buy in your own name - you are not going to sell anyways, so no tax implication. And when you finally transfer the assets into your children's name, it should again not count as taxable (the proceeds), because it is a donation of sorts. Not an expert here, but can't logically see how transferring an asset (stock certificate) into your children's name, can be taxable.
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sixpack
Contributor
Go to computershare. I have accounts for my 2 sons. started them aged 8 and 1. no monthly or annual charge just transaction costs
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Blik
Super Contributor
I think this works....but the minimum age might be 7. You can open a normal Standard Bank account and get them invested through the Auto Share Invest option under a normal account. Maybe check that avenue out.
I have an auto share invest account opened in my name, but specifically for my kids. I queried SBK on this and they said I could transfer it into one kids name, when they reach 7. I stand to be corrected of course.
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cheapcheap
Regular Contributor
Standard bank online allows it, i'm in the process of opening one for my son.
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Not applicable
Yes, trust administration too costly for smaller amounts. I think the annual donation threshold to donate tax free is 100k if im not mistaken. Which you and your wife (assuming you have a wife) each gets. My thinking is that you then have 200k per year to donate to them once they can get their own account.
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guru
Contributor
Thanks guys. Appreciate the advice.
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guru
Contributor
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THRESHOLD
Super Contributor
The master's fee is R100. You can then use an off-the-shelf format for this. Administer it yourself. The level of advice you seek is up to you. Initially - your needs are very simple. The trust will allow you to accumulate other assets for your kids. The donations tax payable on putting larger assets into their names may be small compared to the eventual estate tax on that asset. You could also lend money to the trust - in which case the annual donation will be the interest thereon at the ruling Income Tax Act specified rate. You could retain the dividend flow to service the trust and settle this tax etc. out of these funds. In the event of your death - the loan will pass to your heirs (to wit. your kids) and benefit from a primary R3,5 million tax exemption. Given the Rand and the rate of inflation - this is very important. This may all be nonsense - but surely, depending on you current knowledge level, it is worth paying for a consultation to investigate this.
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guru
Contributor
Much appreciated. Will look into it
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