Where can you invest with an ITIN?
Do you have an ITIN? Did you know you can invest with an ITIN? There is actually NO LAW in the USA that prohibits you from investing in the American stock market. When I found this out my mind was blown. There are SO MANY THINGS that people with an ITIN cannot do, yet, investing – yup, that’s fair game. Can’t underestimate how capitalist the USA is!
I’m Maribel, a bilingual, Immigrant-Money Coach and founder of Our Wealth Matters. I’ve been featured in The New York Times and Next Advisor con TIME. I teach immigrants (documented & undocumented) about legally earning & saving money, and about investing in the stock market. My content is published in English and Spanish.
Did you come here for an American Dream? Does that dream require money? You are able to save some money, but that 9-5 paycheck is not cutting it to fully fund your American Dream? Consider investing! Don’t leave money on the table!
You came here because in the USA you earn USD, and that was more favorable that pesos, yen, or rupees from whence you came. If you are willing to work day in and day out for a paycheck, you can physically also ‘get paid to do nothing.’ Leave the money invested for at least 1 year, and now you are ALSO PAYING LESS TAXES.
Look, all I’m saying is: you came to a whole new country, left behind everything you knew for a better standard of living and better money prospects LETS PICK UP ALL THE MONEY POWERUPS!
ITINs & the Contributions of Undocumented Immigrants to the USA Financial System
Individual Taxpayer Identification Numbers (ITINs) were created in 1996 by the IRS for tax purposes. “ITINs allow foreign nationals and other individuals who are not eligible for a Social Security number (SSN) to comply with U.S. tax laws” (so you know…undocumented immigrants – yes, they pay taxes too).
Contributions of ITIN holders to the USA financial system:
- “Per IRS: in 2015, 4.4 million people paid $23.6 billion in total taxes using an ITIN”
- “By 2007, the Social Security Trust Fund had received up to $240 billion from ITIN filers—up to 10.7% of the trust fund’s total assets.The cumulative contribution is higher now”
- “ITIN contributions have helped to forestall the solvency crisis in the Social Security Trust Fund.”
Did I mention ITIN holders CANNOT claim Social Security benefits when they retire (unless they end up going through the legal process, become a lawful permanent resident, and obtain a SSN of their own and ONLY IF they were previously filing taxes with their ITIN, then the earnings may be counted toward the amount he or she is eligible to receive)?
Why Invest with an ITIN
The situation is as follows: undocumented people are contributing to a USA social welfare system (Social Security) they can NEVER benefit from. So what then? One option is to invest in the stock market long term (10+ years) and ride the wave of compounding interest.
If you live in the United States of America and have an ITIN, you CAN begin investing. You may need to jump through a couple more hoops, but you too are able to build wealth in the USA through investments even with an undocumented status.
ITIN holders: Don’t leave money on the table. You are worthy of creating wealth, not just through your 9-5 (or more honestly, the multiple jobs you may have to hold just to make ends meet), but also through investments. 401(K) may get a little tricky, but you CAN invest through an IRA and a personal brokerage because these are accounts you are able to open yourself without having to go through an employer.
Three Well Known and Respected Brokerages That Accept ITINs
This is not sponsored. Do your own research to see which brokerage company and investment account is best for your financial goals.
The 3 brokerages are as follows:
2. TD Ameritrade
3. Charles Schwab
Each brokerage’s requirements may be different, but be sure to have the following on hand when you are ready to open your brokerage account:
- ITIN number
- Name as shown on your legal identification
- Date of Birth
- Phone number/ Email so the company can communicate with you
- Legal/Residential Address
- Employer’s (if applicable) name and address
- Bank account number from which you will be transferring funds to your brokerage account
- Have an idea of what you want for your username and password
⭐Activate voice authentication feature if available! You’ll have to call the company and set it up.
Accounts you can open with a brokerage company:
☑️Personal Brokerage Account
☑️Traditional IRA Account
☑️Roth IRA Account
☑️Rollover IRA Account
☑️Brokerage Accounts for Higher Education Expenses
☑️Brokerage Accounts for Children
While you can have an unlimited amount of investment accounts with multiple brokerage companies, it may be easier to begin with one – so you can quickly gather your documents come tax time.
Share this with anyone else who has an ITIN!
Claim your OurWealthMaters FREEBIE today!!!
The Freebie includes information for those who are fully undocumented individuals with an ITIN, DACA recipients with an SSN, and 1st generation individuals with a SSN. The FREEBIE is available in 2 languages: English & Spanish. See the links below:
English FREEBIE: https://www.ourwealthmatters.com/freebie-eng
Spanish REGALO: https://www.ourwealthmatters.com/regalo