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Family Member Broker - Managing Mother's Investment

Family Member Broker - Managing Mother's Investment
  1. Can I manage my family investment portfolio?
  2. Can I invest for my family?
  3. Can I trade in my mother's account?
  4. Can you manage someone else's brokerage account?
  5. Can I invest money in my mother's name?
  6. Can I open a brokerage account for a family member?
  7. Should I pay someone to manage my investments?
  8. Can I trade with my parents brokerage account?
  9. Can I invest using my parents account?
  10. Can I invest in PPF for my mother?
  11. Can I legally manage other people's money?
  12. Is it legal to trade on behalf of someone else?
  13. What licenses do you need to manage people's money?
  14. Where can I invest my mother's money?
  15. Is money transferred to mother taxable?
  16. Do I need to pay tax on money from parents?

Can I manage my family investment portfolio?

You can perfectly well manage their wealth without transferring their money into your account first. Just make them open their own account on their name then ask them for credentials and then manage their money from within their own account.

Can I invest for my family?

If your family or friends really want your help, joining or starting an investment club is a great compromise. You can invest your money with your loved ones, without taking on the responsibility of acting as an investment advisor.

Can I trade in my mother's account?

Yes you can open an account in your mothers name. But you cannot link your bank account to her trading/demat account. You would have to first transfer funds to your mother's bank and from there to her trading/demat.

Can you manage someone else's brokerage account?

The short answer is: no. You can't trade stock for someone else. That's illegal unless you're an investment professional. There are a lot of legal requirements to manage other people's money.

Can I invest money in my mother's name?

​Investing in their name

If your parents fall in the non-taxable or lower tax bracket, invest in their names by gifting them money. The sum can be invested in a range of options such as the Senior Citizens' Saving Scheme, post office or other tax-saving schemes and even a common favourite, bank FDs.

Can I open a brokerage account for a family member?

Minors may not be able to open their own brokerage accounts, but family and friends can help them set up custodial or guardian accounts, and when a child begins to earn income (for at least one year), they can open an IRA.

Should I pay someone to manage my investments?

You don't need to pay someone to manage your investments for you. In fact, you may be MUCH better off doing it on your own, and it doesn't have to be hard or take a lot of time.

Can I trade with my parents brokerage account?

An NRI can trade using his father's trading account. However, the father would be liable to pay income tax on any gains arising from such investments. An NRI can transfer money to the father's bank account as a gift or loan which would be linked to the trading and Demat account.

Can I invest using my parents account?

If both of your parents are senior citizens with no income, it means each of them enjoys ₹ 2.5 lakh tax exemption every year. You can invest up to ₹ 2.5 lakh through each of your parents for an investment return of up to 10 per cent which will be tax free in the hands of your parents.

Can I invest in PPF for my mother?

Ankur Choudhary, Co-Founder and CIO, Goalwise replies: "Yes, your wife can have a PPF account in her name and you can invest Rs 1.5 lakh on her behalf. Under the income tax laws, income from money given to a spouse is clubbed with the income of the giver.

Can I legally manage other people's money?

Can You Legally Invest Other People's Money? Yes, but if you plan to invest other people's money you'll need the proper licenses. You may also need to be registered with the Securities and Exchange Commission.

Is it legal to trade on behalf of someone else?

This kind of arrangement is not allowed as per regulations but almost impossible to enforce. As soon as the adviser collects a fee, they are required to register as an RIA. And as an RIA, you are not allowed to execute trades on behalf of the customer.

What licenses do you need to manage people's money?

Generally speaking, these individuals must be Registered Investment Advisers (RIAs), which is a license granted by the state, and abide by Securities and Exchange Commission (SEC) and Financial Industry Regulatory Authority (FINRA) regulations.

Where can I invest my mother's money?

If you are to invest a small sum regularly, then recurring deposits (RDs), National Savings Certificates and Post Office Monthly Income Scheme (POMIS) are great options. If you are a mother to a girl child, you may invest in Sukanya Samriddhi Yojana (SSY).

Is money transferred to mother taxable?

It is perfectly legal to send money to your parents in India and they will not incur any tax on the transferred amount. However, if they invest this money, then the income they receive will be taxable in their hands.

Do I need to pay tax on money from parents?

Gift Tax Rules

Although you don't pay tax on cash or other gifts, your parents may have to. For tax years 2018 and 2019, if your parents each give you more than $15,000 a year – $30,000 total – they must report the gift to the IRS, and it may be subject to gift tax. Up to that limit, there's no tax.

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