Reasons Why Russell Wilson Is The DOPEST For Buying His Teammates $12k In Amazon Stock
Russell Wilson, the Seattle Seahawks quarterback, recently gifted his offensive linemen, Amazon stock as gifts. Each lineman received stock worth $12,000 and the quarterback reportedly spent $156,000 on the gifts.
Needless to say,this received a lot of media attention and praise from financial experts.
It is a common practice for quarterbacks to give linesmen gifts but these are usually luxury watches, suits, and on one memorable occasion, cars. Stock is an unusual gift, but it is a much better alternative to suits and watches.
Stocks have enduring value, especially those of highly successful companies like Amazon. By giving his linemen stocks as a gift,
Wilson has invested in their enduring financial well-being and given them an additional source of income.
Why Stocks Make A Great Gift
Most people don’t think about stocks when they’re looking for gift ideas but they’re an excellent choice.
Here are some reasons why stocks are the perfect gift for your family and friends:
- They Have Real Value – Stocks have real value and will help the recipient in the future. For example, if they're in a financial bind, they can easily sell accumulated stocks for the money. They can also turn stocks into alternative income by building a portfolio and engaging in some trading.
- Encourages People To Invest –This means stocks are a great gift for teenagers and young adults. By giving them stocks instead of money or some attractive gift, you encourage them to invest and create a financial safety net from the get-go. Such a safety net can come in handy several years or even decades down the line. Stocks will also help them become more financially responsible and think about savings.
- Investment Into The Future –All parents appreciate the support that can help their child down the line. That's why stocks are an excellent gift for grandchildren, nieces or nephews, best friend’s children, etc. These stocks can appreciate in value and collect interest, which can help pay for the child’s education down the line.
- No Need For Personalization – Most people agonize over finding the right gift for their family or friends. Stocks are easy because there's no need to personalize them. It is an investment in the future and will benefit the recipient for a long time to come. They will appreciate it even if the gift stocks aren’t personalized.
You can also get tax deductions by gifting stock to charities. If you don’t want to hold onto them but don’t want to worry about capital gains tax, give them to charities for a deduction.
You can create a donor-advised fund for this purpose.
As you can see, there are several great benefits of gifting stocks. Most people hesitate to give stocks as gifts because they’re worried about taxes and formalities.
Fortunately, there are several ways to gift them quickly, without creating a financial burden.
How To Give Stocks As Gifts
Most people don’t realize how easy this can be, especially if they’re not spending a lot of money. Here are some of the best ways to gift stock to people of different ages:
1. Re-titling Your Holdings
If you have a brokerage account or a dividend reinvestment account, gifting stock is remarkably easy. All you need to do is contact the brokerage or institution holding your account and ask them to re-title the stock is the recipient’s name.
This is easier if the recipient also has a brokerage account, but the transfer is easy even if they don’t. The company will send the recipient a stock certificate to signify their ownership.
This process doesn’t take a lot of time because you only need to fill out a form and authorize the transfer. You can also schedule automatic transfers and give the recipient a stock gift regularly.
For example, if you want to give your grandchild stocks on every birthday, you can schedule an annual gift.
2. Direct Stock Purchase Plan
If you don’t already own the stock, it is easy to buy them directly for the recipient. Just fill up a form and mail the check with the amount for purchasing the required number of stocks.
The company will send them directly to the recipient, who has the choice to cash it, invest more money in the plan, or reinvest interest to buy more stock.
It is also possible to keep investing on the recipient’s behalf by sending regular checks to the company. They will keep providing additional stock to the recipient.
It is also possible to set up custodial accounts for minors and invest in stocks on their behalf.
There’s no reason why you can’t gift a loved one some stock instead of an expensive decorative item. That’s why Russell Wilson’s decision drew so much praise and appreciation.
If you choose the right stock, you can help someone build their financial security.
Places to Gift Stock
Stockpile - Stockpile is the only brokerage where you can give an e-gift or physical gift card redeemable for stock. You don't need an account to give a gift.
Give-A-Share - makes it simple to purchase one share of stock as a gift in just 1 minute | Shares in 110+ companies like Disney, Nike, Harley, Apple, Coca-Cola and more.