Gifting Investments to Graduates

Investment gifts for graduatesGraduation is an exciting time, both for the graduate and their family. It can be tough to find the perfect gift, and often people turn to what we know grads love – cash! If, however, you’re interested in something a bit more sustainable (let’s be honest, what high school or college grad will take that check and put it in a savings account?), you may consider giving an investment. We’re here to offer you some basic tips on how to do this.

Getting Started

You can visit an online brokerage account, or visit a broker for a meeting in person. If you already know the stock you’re after, you can also deal directly with the company. To buy a share, neither the buyer nor recipient needs to have a brokerage account, but the recipient will need to set up an account in order to claim shares. If the recipient is a minor, he will need a guardian to do this in his name.

If you already own stocks, you have the option to gift your own shares by calling your brokerage and requesting a stock transfer. It’s as simple as filling out a form.

*Note: If you already do business with a broker you will likely need to purchase a gifted stock through a custodial account.

Choosing the Investment

US Treasury Savings Bonds are classic, stable investments that will slowly gain interest over time. You can purchase these at treasurydirect.gov.

Stocks or Mutual Funds are considerably riskier investments, but are more likely to provide substantial returns over the years. For this reason, they are perhaps a more suitable choice for Millennials, who have plenty of time before retirement. It also allows you to show understanding of the recipient’s interests—a nice personal touch. Two companies, Spark Gift and Stock Pile, are good places to go to purchase. If you would like to buy a single share, both oneshare.com and giveashare.com make it easy to do so. Be sure to choose stocks that have growth potential and enjoy giving a wonderful gift.

If you’re the parent of a grad, you might also consider opening an IRA Share Account or a Money Market Account from American Heritage.

American Heritage Federal Credit Union is here to help you with this and any other investment goals you may have. Come in and talk with us today.