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

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Jul 2, 2020
10:32:07am

Blue Mountains Playmaker

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

One idea I have: We treat it like a loan, that I plan on paying higher percent than she's charging. For example, she loans me $100k at 3% (which is more than she's currently getting on her $100k). I include it with my investments that I make 10% on. I then pay her back the 100k with 10% interest. Even if I make less than 3%, I still pay her back at least $100k + 3%.

Kosher? Not kosher? Other ideas of how I could do this?

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Blue Mountains

Previous username: TayPower
New username: Forest Green
Bio page: Blue Mountains
Joined: Apr 1, 2014
Last login: Jun 28, 2021
Total posts: 0 (0 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?"

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

7/2/20 7:38am

This sounds the most like a lawyer answer

Medute

7/2/20 7:54am

The issue is this:

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:

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?

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?

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.

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

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?

7/2/20 10:32am

Things get dicey with family often.

7/2/20 10:39am

agreed. i'm a glutton for punishment

7/2/20 10:47am

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

7/2/20 1:17pm

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

ditch

7/2/20 11:16am

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