Managing OPM in the U.S. -- need advice/opinions

Discussion in 'Community Discussion' started by Blackheart, Nov 26, 2006.

  1. Blackheart macrumors 6502a

    Blackheart

    Joined:
    Mar 13, 2004
    Location:
    Seattle
    #1
    FWIW, I've been managing my own portfolio of stocks and mutual funds for awhile now and I've become the go-to person in my circle of family and friends when it comes to investing money. While I try to give them pointers as to how to invest their money (especially as it pertains to risk management), it's hard to properly get this across in a 15 minute discussion at some random get-together. They end up asking me what brokerage firms I recommend for stocks or how to invest in mutual funds, etc. but it's one thing to say "go to somesite.com and sign up there" and for them to actually do it.

    While I realize that MacRumors isn't a hotbed for investment-related information, we do have several well-informed members. Thus, I pose my two questions:

    1) What are the legal implications of investing OPM on this small scale?

    2) What are your opinions on doing this? I aim to make it easier for people that I know to invest but not if the foreseen burden on myself is too great.

    Thanks for your help!
     
  2. MongoTheGeek macrumors 68040

    MongoTheGeek

    Joined:
    Sep 13, 2003
    Location:
    Its not so much where you are as when you are.
    #2
    Hopefully with friends there is more of a worry of loosing friendships than legal troubles. If there is more of a legal worry than perhaps you should invest in new friends.

    There are some SEC implications in helping people to invest. There are licenses etc. You also have to watch out for anything where it looks like you profited by their loss.

    Probably the best thing to do is say that while you feel comfortable risking your own money, you don't feel right risking theirs. Tell them where you have your money and why. Say who you use and why. If its inappropriate for them tell them why.

    /Took me a while to remember what OPM stood for
    //we'll file it under easy come easy go.
     
  3. mkrishnan Moderator emeritus

    mkrishnan

    Joined:
    Jan 9, 2004
    Location:
    Grand Rapids, MI, USA
    #3
    O is for other, P is for people, the last P? Well, that's not so simple! :D

    I personally think that managing money for friends or loved ones is dangerous... because my friendships are more important than money to me. But not everyone feels that way. :(
     
  4. Macky-Mac macrumors 68030

    Macky-Mac

    Joined:
    May 18, 2004
    #4
    indeed....losing money for friends or family does nothing good for the relationship
     
  5. Abstract macrumors Penryn

    Abstract

    Joined:
    Dec 27, 2002
    Location:
    Location Location Location
    #5
    But gaining money for them does. ;)

    Of course, I wouldn't risk it either way. The most I have done is tell my parents to put their money into a high interest bank account, or just send their money to me and I'll do it for them. I get 6.0% p.a. at the moment from my bank.

    What is tha? Booyah?
     
  6. Kwyjibo macrumors 68040

    Kwyjibo

    Joined:
    Nov 5, 2002
    #6
    Once you figure out OPM work on BHAG.


    Don't do this, besides risking your livelihood ... you will risk your most valuable asset your friends and family.
     
  7. Blackheart thread starter macrumors 6502a

    Blackheart

    Joined:
    Mar 13, 2004
    Location:
    Seattle
    #7
    Thanks for all of the input. I've decided that I wouldn't like ruining relationships with family/friends so I'll just forget about that.

    Thanks again!
     
  8. MACDRIVE macrumors 68000

    MACDRIVE

    Joined:
    Feb 17, 2006
    Location:
    Clovis, California
    #8
    I was thinking that OPM was a new acronym for OPIUM. :D
     

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