They have worked together for probably 20 years

Jul 2, 2020
7:10:23am

Medute All-American

Bob is married. Jill is not. They do not hang out or spend time away from work together but they frequently work together. Jill didn’t know what to do with her money and learned over time that Bob was savvy and therefore asked the favor.

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Medute

Bio page: Medute
Joined: Jun 29, 2010
Last login: Apr 29, 2024
Total posts: 17,510 (1,111 FO)

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Messages

Author

Time

Asking advice for a friend who has managed someone’s investments (with edit)

Medute

7/2/20 6:59am

If I were Jill I wouldn't pay anything.

Little Britches

7/2/20 7:02am

Interesting, really?

Medute

7/2/20 7:06am

Here's my reasoning:

Little Britches

7/2/20 7:15am

There is certainly no obligation whatsoever

Medute

7/2/20 7:25am

Wouldn't it be easier to just say "I'm a yewt?"

BYUALWAYSNUM1

7/2/20 8:08am

Do you give your money away to everyone who has helped you out?

Little Britches

7/2/20 9:13am

I’ve never had anyone “help me out” to the tune of $400,000

Medute

7/2/20 9:17am

True. If I knew Bob more than casuallybid go 15k. If it was the equivalent of

Little Britches

7/2/20 9:34am

If I were Bob I wouldn’t accept a gift

Acorn

7/2/20 7:24am

He never expected or asked for a gift

Medute

7/2/20 7:28am

If you were asking for Jill

Acorn

7/2/20 7:39am

Ah.. so the true intentions of the “gift” come out

cougfanz

7/2/20 8:03am

That’s my theory...but Jill did make a statement about the size of the account

Medute

7/2/20 8:10am

I agree he shouldn't expect anything. But if Jill wishes to do something of her own accord then that is up to her. And

unctoothman

7/2/20 5:28pm

If Jill intends this gift to continue to procure Bob’s services

Linescratcher

7/2/20 7:38am

This sounds the most like a lawyer answer

Medute

7/2/20 7:54am

The issue is this:

Linescratcher

7/2/20 8:03am

I’m no lawyer, but I have a hard time seeing how there would be issue with gift

Medute

7/2/20 8:14am

Let's take a stroll down "Worst Case Scenario" lane:

Linescratcher

7/2/20 8:33am

Well that’s certainly a worst case scenario

Medute

7/2/20 8:38am

<< Deleted >>

ditch

7/2/20 11:02am

I have no idea what would be fair, but will Bob manage my investments too?

theOnceler

7/2/20 7:03am

Bob has done very well

Medute

7/2/20 7:14am

Maybe Bob should start a business?

BYUALWAYSNUM1

7/2/20 8:14am

How would your friend claim it as income? That could cause your friend some

MormonThug

7/2/20 7:04am

It would have to be done as a gift within the tax rules ($15,000 per year)

Medute

7/2/20 7:09am

RE: It would have to be done as a gift within the tax rules ($15,000 per year)

MormonThug

7/2/20 7:33am

Well, the tax implications are just that Jill has to report any amount of a gift

basman

7/2/20 8:04am

How close are they? Either party married?

BYUALWAYSNUM1

7/2/20 7:06am

They have worked together for probably 20 years

Medute

7/2/20 7:10am

Send the couple to Hawaii for 3 weeks. Two for quarantine and one for fun.

BYUALWAYSNUM1

7/2/20 7:13am

You can gift someone $15,000 without affecting either one's taxes, so I'd say

Broda

7/2/20 7:07am

The consequence is only that the giver has to report the amount gifted over

basman

7/2/20 8:06am

I think $15-20k

KingDave

7/2/20 7:11am

He didn't even beat just putting it in VTI for 10 years.

Baron

7/2/20 7:12am

Why did my post get a thumbs down? For asking a question?

Medute

7/2/20 7:15am

Thumbs down because the guy did nothing special.

Baron

7/2/20 7:16am

20% annual return when the S&P average was 10% isn’t special?

Medute

7/2/20 7:37am

RE: 20% annual return when the S&P average was 10% isn’t special?

Baron

7/2/20 7:38am

Also your math is wrong

Baron

7/2/20 7:19am

You are right, thanks. I just re-did her S&P numbers

Medute

7/2/20 7:34am

EDIT. I retract my post. I looked at VTSMAX but then compared it with VTI. Move

Baron

7/2/20 7:29am

Yeah, I think Bob is not as much of an outlier as it originally sounded.

d-coug

7/2/20 7:30am

The S&P return over that 10 years was 11.96%

Medute

7/2/20 7:42am

$10-15K. Over a 10 year period that's reasonable

GA_Coug

7/2/20 7:13am

$50k. Oh and good work Bob.

WDaddy

7/2/20 7:16am

This is closer to what I was thinking

Medute

7/2/20 7:21am

Probably nothing but I would thank him.

cougfanz

7/2/20 7:21am

I lightly encouraged people at my former company of 200 employees to invest in a

dYrtbYkerYder

7/2/20 7:26am

If I were Jill I would buy Bob something that means a lot to him

JOPE

7/2/20 7:56am

This is almost exactly what my response has been

Medute

7/2/20 8:02am

I hope you are negotiating a small fee for your role as arbitrator.

AFCougK9

7/2/20 8:05am

Hahaha, now you’re talking!

Medute

7/2/20 8:16am

Will you tell Bob I have $272 and would be happy to enter into a similar

Epileptic Beagle

7/2/20 8:20am

100k. 10% return over ten years is 705k. He added 700k over the an index fund.

valleus

7/2/20 8:46am

If I were Bob, I wouldn't accept anything over a dinner with friends. There is

msbbm760

7/2/20 9:22am

I don’t think I agree

Medute

7/2/20 9:40am

I am a tax professor, but he can do as he wants.

msbbm760

7/2/20 12:13pm

It's no different than a tip for tax purposes. It's income.

msbbm760

7/2/20 12:58pm

I am just so confused. I thought the IRS allowed a person to give a gift

Medute

7/2/20 2:16pm

I’m confused too. Aren’t you allowed to gift any amount, but if it’s over 15k

valleus

7/2/20 2:41pm

It's not a gift when the only reason it is being given is because a service was

msbbm760

7/2/20 4:58pm

I advised them to be careful for the reasons you mention

Medute

7/2/20 5:14pm

Here's an idea. Does Bob have a business he's always wanted to start?

dultso

7/2/20 9:35am

Personally, I don't like Jill's actions here. It seems she is putting Bob in a

delbert

7/2/20 10:01am

Variation on the theme - I want to help my mom manage her $. Best way to do it?

Blue Mountains

7/2/20 10:32am

Things get dicey with family often.

BYUALWAYSNUM1

7/2/20 10:39am

agreed. i'm a glutton for punishment

Blue Mountains

7/2/20 10:47am

No way I'd put myself on the hook if I lost money.

dYrtbYkerYder

7/2/20 1:17pm

I say it depends on how much available cash you have to "give back/share"

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