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FAQ’s

Do I have to buy Stuff with my Stock?

Yes, the goal of JackieTrust® is to teach financial literacy. Pairing the high interest Stuff with the “&Stock” allows the child to connect with the value of owning a stock. As an investment and educational tool; buying stock that is easily understood by the child teaches financial literacy skills, stock market savvy, and how to grow wealth. Investing will also assist in developing math skills as they watch and evaluate how their investment grows over time.

What is a DRIP?

DRIP is the acronym for Dividend ReInvestment Plan, but it also describes the way the plan works. With DRIP, the dividends (earnings) that you receive from a company automatically goes toward the purchase of more stock, making the investment in the company grow little by little. What’s also great about DRIP is that it’s not necessary to purchase a whole share of stock. Investor deals directly with the company, and the corporation keeps detailed records of share ownership percentages.

Why focus on DRIPs?

DRIPs are low risk and tend to have a stabilizing influence on stock prices. The dividends that an investor receives from a company goes toward the purchase of more stock, making the investment in the company grow little by little overtime, which works well with an Custodian/UTMA Account.

Where can I find DRIPs?

There are over 1300 DRIP options available to you. We provide a DRIP list for your review. We also provide Jackie’s Gift Guidance, which are names that young people gravitate towards because the names are recognizable. DRIPs are usually conservative low risk stocks that encourage long-term investment rather than active trading. Click here to request access a list of DRIP stock.

 

NOTE: JackieTrust is an educate on financial literacy and gift to children service. JackieTrust does not have a Series 7 license, so we do not recommend any stocks; therefore, you are not limited to the list made available by Computershare.

How do you create the Stuff&Stock?

As an example (only), if the child or parent is fascinated with golf we would look at a golf gift (stuff). Some possibilities are kiddy golf clubs,  money golf balls, mini-golf outing, golf clothing, etc. We then look at any DRIP that offers golf supplies. Again, as an example JackieTrust could bundle a putt-putt outing with a share of Callaway stock. Now, every time the child sees a golfer using Callaway clubs its recognized as stock they own as well as wanting to know how their stock is performing.

How does JackieTrust match a gift to a DRIP Stock?

JackieTrust® always begins with what is of interest to the young person (child, teen, young adult). The team connects their interest to stock ownership. They are constantly reviewing  DRIP and has determined a preliminary list of child friendly gifts belonging to companies offering Dividend ReInvestment Programs (DRIP); by their nature DRIPs are conservative low risk stock that encourage long-term investment rather than active trading.

What is a Custodial Account and why is it needed?
A custodian account (usually a parent,  relative or someone connected to the child’s wellbeing), also known at an Uniform Transfer Minor Act (UTMA), has a duty to manage the money for the welfare of the minor, but the property belongs to the minor since gifts to the UTMA are irrevocable. Until children are of age they need custodian  oversight.

At what age does the child have access to the account?
The ages range from 18-21 depending on the state.

As the Custodian, will I have to pay taxes on the gifts?
Up to $14,000 annually can be gifted to the child without triggering mandatory filing of IRS Gift Tax Form 706 and possible payment of gift taxes.JackieTrust® will stay abreast to any changes to the IRS ruling. However, contact you tax accountant if you have questions.

What are some possible financial values of a JackieTrust?
I did not have a JackieTrust® growing up and frankly I do not remember most of the gifts (Stuff) I received as a child, but let’s assume my custodians started a JackieTrust for me as a minor. Let’s also assume that over time, with some presents (Stuff&Stocks™) from friend and family, it became a $10,000 investment. Now, that $20 per week for a total of 9.5 years. Not only would I be able to remember the gift by the paired family stock but…

Had they invested $10,000 in Proctor Gamble (PG) in 1970, today, would own 5,727 shares, worth about over $363,000.

Had they invested $10,000 in 1990 in CocaCola (KO), today you would own 1,047 shares, worth over $73,143.

Had they invested $10,000 in Walmart (WMT) in 1980 I would own 74,472 shares worth over $3,900,000.

Why the stock market instead of other plans?
It is always your choice but data shows that a child with a college saving is more likely to go to college so it goes without reason to believe that a child with investments will develop a better understanding of investing and growing wealth. The child can use the money for college but can also continue to invest an increase wealth.

What are the four pillars of finance?
Spend, Save, Invest, Donate, but let’s not leave out Earn.

When is the best time to get started?
Now!