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Disney investing for daugher

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  • Disney investing for daugher

    My daughter loves Disney. I was thinking of investing in some Disney stock just to get her started early in the stock market, so that later I can show her the ropes and she can get excited watching it grow (or shrink). Disney offers this:

    The Walt Disney Company and Affiliated Companies - Disney Investment Plan

    Or should I go through a cheap online broker?

  • #2
    I bought about 8 stocks for my son when he was 4. DIS is one of them. I went through Sharebuilder. They had a deal. I kind of like having the brokerage. To each his own though.

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    • #3
      Originally posted by firehawkocean View Post
      Or should I go through a cheap online broker?
      I'd also likely go with a broker. That way if you added a 2nd company down the line, she could just log in and see her stocks all on one screen.

      Plus easier to manage, ease of recordkeeping, tracking cost basis, etc.

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      • #4
        jpg7n16 makes some good points about keeping track of stocks (especially if you aim to have more than one company).

        I think it would depend on how much stock you intend to buy for your daughter and how much the cheap online broker charges for a commission. If it is a one time event then a cheap online broker might work out just fine. If on the other hand you plan to make it an ongoing monthly purchase of additional shares you might want to go through Disney since they only charge a $1.00 investment fee (if you use the EFT option) which is pretty competitive.

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        • #5
          I would set her up with an account at Optionshouse and start with something simple like a iron condor option play on Disney

          But in seriousness, there are a few online brokerages that offer free money for opening an account, so you could check that if you are planning on $1000 or more.

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          • #6
            This is a slight tangent, but how does purchasing stocks for a child work? Are you able to just open it in her name no different than your own? Or do you have to set up some sort of custodial account where you are a joint-owner on the account?

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            • #7
              Originally posted by kork13 View Post
              This is a slight tangent, but how does purchasing stocks for a child work? Are you able to just open it in her name no different than your own? Or do you have to set up some sort of custodial account where you are a joint-owner on the account?
              It needs to be a custodial account. Minors can't legally enter into contracts.

              I'd also use a discount online broker. Many have some deal to give a certain number of free trades for new accounts. I use Scottrade and I think I got 10 free trades when I opened my account.
              Steve

              * Despite the high cost of living, it remains very popular.
              * Why should I pay for my daughter's education when she already knows everything?
              * There are no shortcuts to anywhere worth going.

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              • #8
                I'd also likely go with a broker. That way if you added a 2nd company down the line, she could just log in and see her stocks all on one screen.

                Plus easier to manage, ease of recordkeeping, tracking cost basis, etc.
                As this made a good point, you also have to take in consideration, if you'll take a broker you need to make sure that he/she can be trusted! Of course it's your daughter's future! You don't want to risk that!

                If I were to choose, I'll take the Disney Plan, it's surely Disney and you can probably acquire those feature plans!

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                • #9
                  Originally posted by ecoadapt View Post
                  As this made a good point, you also have to take in consideration, if you'll take a broker you need to make sure that he/she can be trusted! Of course it's your daughter's future! You don't want to risk that!

                  If I were to choose, I'll take the Disney Plan, it's surely Disney and you can probably acquire those feature plans!
                  Well, if i was to use a broker, it would be one that is well trusted and one online. What is the best, most reputable, online broker that won't break the bank with fees?

                  Thanks

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                  • #10
                    Originally posted by firehawkocean View Post
                    Well, if i was to use a broker, it would be one that is well trusted and one online. What is the best, most reputable, online broker that won't break the bank with fees?

                    Thanks
                    I currently use Scottrade which is $7/trade and has a really good interface and customer service.

                    KTP uses Optionshouse which has a $4/trade rate I believe. I haven't used them so I can't comment on their platform.

                    One thing I don't like about Scottrade is they don't do dividend reinvestments. Even though Disney doesn't pay that high of a dividend (1.4%), those reinvested dividends could really add up over time.

                    And by the way, I think it's great that you're getting your daughter involved in understanding investing at such a young age.
                    Last edited by kv968; 03-03-2012, 08:19 AM.
                    The easiest thing of all is to deceive one's self; for what a man wishes, he generally believes to be true.
                    - Demosthenes

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                    • #11
                      This isn't quite in the same league as Disney stock but how about "investing" in some Disney dollars. They'll always be worth face value at Disney properties and may rise in value depending on their condition and what they're illustrating. Just bought a bunch of these for my baby nephew's time capsule, which he'll be opening when he's 21.

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