I'm only 17, so I can't open up a conventional brokerage account myself. My parents would have to open up a trust for me, and when I turn 18, their names are essentially removed and I take full ownership of the account. The problem is, the brokerage I prefer to use only allows a margin account to be opened as a trust. My issue, is that I'd prefer to have a TFSA (gains are tax-sheltered, but contributions are not tax deducted). I'd be moving a small amount of my own money in, and buy a couple of shares of SPY. Because I am a student and am in the lowest tax bracket (part time job), I will not be taxed on any gains (to a certain extent). Also, I most likely will not contribute much to the account for the rest of the year. My question, should I go through with opening up this account, simply to get into the market (even though I may be taxed slightly)? Further, I was thinking that I could open up this account now, then when I reach 18 open up a TFSA, and mainly contribute to it, keeping the margin account strictly for when I max my TFSA (which I most likely won't be able to do for several years). Also, there are no dormant fees as long as a minimum is kept in the account. Or, should I just wait until I'm 18, and open up a TFSA outright? Or would I fall victim to "timing the market"?
Thanks for all replies
Submitted July 22, 2017 at 08:18PM by Santo_R http://ift.tt/2gTsQny
