Family Money

Discussion in 'Trading' started by Rickd23, Dec 13, 2007.

  1. Rickd23


    Guys although I plan on doing research over the next few weeks in regards to this question I thought I would post here to get some initial ideas.
    I have around 50K of my own money I am looking to put to work as well as around 50K more from a few family members.
    My question is in regards to what is the best company structure to trade these funds. The family members do not want to be involved with the trading so I am going it alone.
    I also do not want to get into what experience I have etc... Lets just assume I can day trade and swing trade well although that verdict is still out. Bottom line is I am giving it a go and am very interested in the right structure business wise.
    I was thinking hedge fund but that isn't really what I am going to do. I will not be taking in anymore money. It is just a tiny little family account. Thanks for any feedback.
  2. $50k your money

    $50k family money

    When you lose the first 50k, take your 50k and pay them back.

    Someone else can advise you on the profit side.
  3. Rickd23


    One thing you can count on is a smart ass remark right away on this sight. The family members have plenty of money including risk money so don't worry about that. Is there anyone on here that can give real feedback instead of one or two liners. Are there traders or comedians on this site???
  4. Surdo


  5. Go to IB (Interactive Brokers) and open a friends and family account. Both accounts will be segregated, but controlled by you.
  6. JimyJam


    You're entering a very tricky area.

    If you're really that good, I'd say build your own capital up first to prove it so that there is no question that you can handle OPM (that you have a personal relationship with) successfully, but nevertheless, here you go:

    Green Company

    I would recommend a LLC. But make sure you do your own research and due diligence.

    You almost have to guarantee a return on your family members' money to make it worth the potential headache if you screwup (or say, a trade or three just doesn't work out) ... but OK, I won't mention that anymore.

  7. Rickd23


    JimyJam, that is just what I was looking for, thanks for the feedback.
  8. JimyJam


    Good luck man.

  9. jolor


    Good Luck
  10. lindq


    Based on this alone, you are a world class dope if you touch ANY family funds before you've proven your capabilities with your own money.

    Lose money - ANY money - from your relatives and you will never, ever hear the end of it.

    Is it worth it? Not by a long shot.
    #10     Dec 13, 2007