Dividends are basically the same as partial sales. The only disadvantage is that you cannot control it. For example, it can increase and exceed the tax-free amount or be too small to be utilized.
@Lukas2998 The child can earn up to €6060 in investment income in 2024. If it exceeds this amount, it will no longer be covered by family insurance (health insurance). In most cases, it will take some time before a child earns €6,000 in investment income per year. And until then, I have enough time to switch to accumulators so that this does not happen
@Lukas2998 What do you think the average parent has in their children's deposit box? And no, you don't invest grandma's and grandpa's money in Nvidia or anything like that, but handle it with care and caution. There's a big difference between investing your child's money and investing your own
@Lukas2998 How much money do you need to invest in a relatively low-risk ETF (e.g. ACWI) to make 6K a year? Nvidia is an example of a stock that has also been gambled with in recent weeks
@Lukas2998 For the sake of simplicity, assume the ETF makes 6%. Then that's €100,000 that you have to invest. Who do you think has that for their child? These are the very fewest in society and therefore the 6K return per year is totally illusory for most people anyway and your comments on better taxability via partial sales are not relevant here at all. Do you actually have children yourself and have you ever seriously read up on the subject?
@Johann_van_der_Smut Where is the argument? You talked about utilizing the tax-free amount. I merely said that partial sales are better than dividends. And that is independent of the capital invested and the return.
