Investing for kids (not for kids, but FOR KIDS) aka pocket change.

Discussion in 'Share Investing Strategies, Theories & Education' started by Bran, 15th Jul, 2015.

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  1. Terry_w

    Terry_w Lawyer, Tax Adviser and Mortgage broker in Sydney Business Member

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    Yes
    Kids will be taxed at up to 66% on dividends
     
    Terry_w, 12th Aug, 2019
    #21
  2. inertia

    inertia Well-Known Member

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    AFI (and apparently WFI) have the option of DRP or DSSP. DSSP is Dividend Share Substitution Plan. Where DRP spends what you would have received as dividends on additional shares, DSSP substitutes shares for the dividend. That makes the cost basis for those shares $0. It means instead of paying tax on income (where minors are punitively taxes), they would pay the CGT if they ever sell instead, and avoid the punitive investment income tax.

    cheers,
    inertia.
     
    inertia, 12th Aug, 2019
    #22
    fuzzylogic99 likes this.
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