The simplest structure for collective investments

Discussion in 'Professional Trading' started by blueraincap, Jun 18, 2015.

  1. I know it has been asked repeatedly, and can become complex, but back to square 1, I just need a vehicle to pool together capital from a few investors (none US citizens).

    After seeing all those complicated structures, I think a lot are overkilled and unnecessary for my simple purpose (pooling money).

    I wonder what are some disadvantages in simply using a single Seychelles entity (LP or IBC) to pool capital?

    • only $1m in pooled capital, so don't wanna waste on anything
    • Broker will be Interactive Broker to trade Japan and HK stocks
    • I wanna pool money, opted not to use IB's family and friends structure
    • Investors are close friends, so can do without having a custodian for now
     
  2. it's common sense to never ever invest for friends or relatives.
     
  3. please point out some major disadvantages
     
  4. lindq

    lindq

    You'll know when you get there.

    Unless you are already highly successful, have a long track record, and treat your financial relationships on a strictly professional level with full disclosure from everyone...don't do it. It isn't worth it.

    Trading is risky even under the best circumstances. Do you really want your friends along for the ride?
     
  5. Fixed that for you ;)
     
  6. please comment on the disadvantages of using a single offshore vehicle.
    I don't need any comments on losing money or friendship.
     
  7. not really. certainly the worst is if you lose money. but also if you just make moderate winnings, it might not be enough and friends (who usually don't trade) would expect more and be angry with you. I had that already.

    last, if a trade is running agains you it impacts your emotions much more than if you just play with your own money. hard to concentrate.


    "please comment on the disadvantages of using a single offshore vehicle."
    don't know, I don't even understand what you mean. ask your lawyer or tax advisor. the only good advice that we can give you is: don't do it.
     
  8. so, all comments are trash. thats why this kinda site is useless
     
  9. Your question is trash. Alright, you don't need to listen to us, please go ahead and gamble away your friends's money... please, enjoy it! :)
     
  10. so, all comments are trash. thats why this kinda site is useless
     
    #10     Jun 29, 2015