Introduction

Note: This article is for informational purposes only and should not be considered legal advice. Always consult with a legal or financial professional for specific guidance.

While it is understandable that a minor may want to dip their toe into the world of investing by creating a Robinhood account, there are several legal and ethical considerations to bear in mind. This article explores the potential consequences of creating a Robinhood investing account as an underage individual and lying about your age, while providing practical advice and recommendations.

Why Using a Guardian or Trusted Adult is Recommended

One of the most straightforward and safest ways to navigate the complexities of underage investing is to ask a guardianship figure such as a parent, uncle, aunt, or even a grandparent. If you need to start with real money for trading, it is likely necessary to seek assistance from a parent or guardian, making it easier to have them set up the account for you.

Real-World Examples and Modern Challenges

Historically, there have been instances where individuals under the legal age of adulthood have managed to start their careers and work by lying about their age. For example, the author's brother started working at a stamping plant at 17 and managed to work there for a long time, eventually becoming a union steward. However, it is important to acknowledge that the modern corporate environment is more vigilant and stringent when it comes to age verification, making it increasingly difficult to pull off similar ruses.

Tax Considerations and Legal Implications

When it comes to taxes, the Internal Revenue Service (IRS) is primarily concerned with collecting revenue from legal income. Due to this, there are minimal concerns about minors trading stocks from a tax perspective. However, engaging in fraudulent activities, such as trading stocks under the premise of being an adult, can lead to long-term legal issues and financial penalties.

The article suggests that attempting to commit fraud, even for small amounts, is not advisable. It recommends that minors build up their knowledge and savings in the meantime and open an account when they reach the legal age of adulthood. This approach minimizes the risk of legal trouble and provides a solid foundation for future financial endeavors.

Conclusion and Final Recommendations

In summary, while it is possible to open a Robinhood account as an underage individual and lie about your age, the risks involved make it advisable to seek assistance from a trusted guardian or adult. This not only helps to avoid potential legal issues but also ensures that you can make informed investment decisions as you transition to independent adulthood.

It is important to remember that engaging in ethical and legal activities is crucial for long-term success and financial stability. By following these guidelines, you can safely and confidently navigate the world of investing.