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

[Blackheart]

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!

 

[MongoTheGeek]

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.

 

[mkrishnan]

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

O is for other, P is for people, the last P? Well, that's not so simple!

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.

 

[Macky-Mac]

O is for other, P is for people, the last P? Well, that's not so simple!

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.

indeed....losing money for friends or family does nothing good for the relationship

 

[Abstract]

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?

 

[Kwyjibo]

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.

 

[Blackheart]

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!

 

[MACDRIVE]

I was thinking that OPM was a new acronym for OPIUM.