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pistolpt
Registered: Feb 2012
Posts: 129 |
05-09-12 10:31 PM
Lets say you have a $300,000 IB master account with family and friend sub-accounts. You charge a 10% performance fee & your strategy kicks but and makes them a combined $100,000 one year.
When would you take that fee out? Monthly? Annually? When they redeem?
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rmorse
Registered: Apr 2011
Posts: 1056 |
05-09-12 11:25 PM
Quote from pistolpt:
Lets say you have a $300,000 IB master account with family and friend sub-accounts. You charge a 10% performance fee & your strategy kicks but and makes them a combined $100,000 one year.
When would you take that fee out? Monthly? Annually? When they redeem?
Monthly is typical.
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jack hershey
Registered: Feb 2003
Posts: 7475 |
05-09-12 11:55 PM
Quote from pistolpt:
Lets say you have a $300,000 IB master account with family and friend sub-accounts. You charge a 10% performance fee & your strategy kicks but and makes them a combined $100,000 one year.
When would you take that fee out? Monthly? Annually? When they redeem?
Maybe someday you can think things through.
People put money in and they get a return.
you, as a participant, do more than put money in. You earn fees which, any thinking person knows, are earned and in the fund from the point forward when they were earned.
So far you don't understand how much money each person has in the fund and especially you.
When building wealth, no one who is building wealth stops doing it.
I'm sure you can find a new lawyer who knows something about building wealth to help you rewrite your contracts with these people. Your present lawyer is fairly ignorant.
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Alcibiades
Registered: May 2007
Posts: 41 |
05-10-12 08:23 PM
Quote from pistolpt:
Lets say you have a $300,000 IB master account with family and friend sub-accounts. You charge a 10% performance fee & your strategy kicks but and makes them a combined $100,000 one year.
When would you take that fee out? Monthly? Annually? When they redeem?
I would think quarterly so as to let
profits accumulate more than a monthly
draw . Plus it will reflect in your % track
record if you take monthly. You give it
2 extra months to let money work to
earn more money.
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Alcibiades
Registered: May 2007
Posts: 41 |
05-10-12 08:24 PM
Quote from pistolpt:
Lets say you have a $300,000 IB master account with family and friend sub-accounts. You charge a 10% performance fee & your strategy kicks but and makes them a combined $100,000 one year.
When would you take that fee out? Monthly? Annually? When they redeem?
I would think quarterly so as to let
profits accumulate more than a monthly
draw . Plus it will reflect in your % track
record if you take monthly. You give it
2 extra months to let money work to
compound and earn more money.
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