1Wk·

Savings plan for my sister (13 years old) - share selection & transfer

Hey everyone,

My little sister has just turned 13 and I would like to set up a monthly savings plan for her until her 18th birthday. 20 € for her until her 18th birthday - i.e. for 5 years. I'm using Trade Republic.

My first idea was:

➡️ 10 € in $GOOGL (-0.64%)

➡️ 10 € in $NVDA (+0.49%)

What do you think - good mix or do you have other recommendations (only individual stocks, no ETF)? The goal is long-term growth - it should be a small starting cushion for her 18th birthday.

A few general conditions:

I cannot not open a children's custody account so the whole thing is in my name for the time being.
Now the question arises: How do I transfer the custody account to them later? Are there any sensible (tax and legal) ways to transfer the custody account or the income at 18?
Or would it be better to save in a normal account and then invest everything at once when she turns 18? I think that would be a shame, because then 5 years of compound interest are missing.

I would be grateful for any feedback - especially from people who have done this for siblings or children!

Best regards

Viktor

17 Comments

KonradM@KonradM

1Wk

First of all, it's great that you're doing something like this.

Do you really want to invest in individual shares? Or have you already looked at whether you might be better off investing in $IWDA or $VWCE?
Since you want to achieve a starting capital for them, I would rather invest your savings installment in one of the ETFs 🙂

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Wiktor_06@Wiktor_06

1Wk

@KonradM Thank you. But I think there's more potential with the titles I've mentioned. And do you know the best way for me to transfer it?

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GHF@GHF

1Wk

There is no problem from a tax point of view. The tax-free allowance is €20,000, i.e. you can give your sister €20,000 tax-free every ten years.
You can transfer individual share positions from your custody account to her custody account. Fees may be incurred here. However, this is tax-compliant and technically unproblematic.

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Wiktor_06@Wiktor_06

1Wk

@GHF Thank you. So after her 18th birthday, ask TR?

Thank you

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GHF@GHF

1Wk

@Wiktor_06 exactly 👍🏻
She will have to open a custody account and you can then transfer it to this account. It doesn't matter which broker she uses. It doesn't have to be TR.

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Wiktor_06@Wiktor_06

1Wk

@GHF Thank you for the information.

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Ph1l1pp@Ph1l1pp

1Wk

All in $XLKS

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MB05@M_Bo

1Wk

@Ph1l1pp I've seen you comment on this ETF several times now. I have never seen it before, do you prefer it to the NASDAQ? If so, why ?

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Ph1l1pp@Ph1l1pp

1Wk

@M_Bo better in all benchmarks and backtests (except for max drawdown, as it only contains tech).

Additionally I have the $IUHC

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Twizzi@Twizzi

1Wk

Would perhaps take more shares, isn't every savings plan free with TR?
Amazon, Microsoft perhaps also included.

Regarding tax, tax-free allowance for siblings: €20,000 every 10 years. You can then transfer the custody account or individual positions to their tax ID.

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Wiktor_06@Wiktor_06

1Wk

@Twizzi Thank you very much, also a good idea

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NikolaiR@NikolaiR

1Wk

Hey Wiktor,
cool plan - really strong that you want to give your sister something so early! 🙌

Personally, I would opt for a broadly diversified ETF rather than individual shares for such long-term mini savings plans. At €20/month, price fluctuations and cluster risks (especially with tech like $GOOGL & $NVDA) make a big difference in percentage terms - and an ETF simply provides more peace of mind, less maintenance and solid diversification.

An MSCI World or All Country World ETF (e.g. from iShares, Amundi or Vanguard) could be a good place to start - globally diversified, cost-effective and proven over the long term.

Later, when she is 18, she can still decide whether to add individual stocks. Just my "2 cents" :)

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Wiktor_06@Wiktor_06

1Wk

@NikolaiR thank you Bro

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Suky@Suky

1Wk

I will take $VWCE and $NVDA. I wouldn't pick Google as they are always under pressure to sell off parts of the company to reduce their market dominance. It is unclear how this could affect the shares in the long term.

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Ph1l1pp@Ph1l1pp

1Wk

@Suky But then why Nvidia?

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asset_sage_1391@asset_sage_1391

S&P 500 is key

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Tim@Tacticus

No individual shares, that makes 0 sense in this constellation.
A WORLD ETF is better. You don't have to rebalance anything (not worth the effort at €20...)

What you think has the most potential here is irrelevant.
It's your sister's money. So be sensible.

You can play with your money. 🤷‍♂️

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