Giving financial advice

[clayton4115]

speaking from inside the industry itself, be careful as 90% are crooks and the other 10% are genuine!


:

 

[Julia]

To be honest this sounds like a recipe for disaster.

Although they have said "i wont be annoyed at you if i lose money" just wait until they really are down on their inital investment. Losing money has a strange way of affecting people, you dont know how they will act or what they will do until its too late.

If you still want to give advice, I would not handle the transactions for her, distance yourself as much as possible and get her to instruct her broker/real estate agent/account/etc.

In my opinion there is no problem giving general advice i.e. like you can diversify your investments by buying blue chip stocks such as .......

but let them make the final decision.

Edit: Another thing to consider is any family members who one day will get the inheritance, they may not like you playing round/having access to her accounts (family members can get jealous) and if money was lost they would view that as money you lost them not her.

Really good point.

best thing you could do would be to accompany her to an independent, hourly fee based planner. This way she wont get ripped off, and two you are getting your face into an industry your interested in.

Sounds like a good compromise.

All up, what would you say is your reason for wanting to do this?

You're feeling successful because you're happy with your own result in a mere two years of experience. Fine.
Probably you've told all your family about how well you've done. Fine also.

And you've told them that the results your grandmother has been achieving are pathetic, that you can do so much better for her etc. Not so fine.

So if the market picks up and she makes a bit more money you will be regarded as a hero. But hey, what about if you lose even more of her money than the present arrangement?

Above all, what I'd ask you is what in the hell you mean by charging your own grandmother for advice????

She has probably wiped your bottom, read you stories, and generally cared for you just by being your grandmother. If you do embark on such an ill advised course as advising her financially, wouldn't you in all decency just do it for nothing?

 

[nomore4s]

2 years.

Up 40% since inception on personal folio of less than 30k.

Total trades made: less than 100.

I get the point you are trying to make.

No offense Largesse but I think you should re-think your idea.

I think you will find it is a different ball game investing/trading $30k to investing/trading $300k+. It also seems to me your personal bias may get in the way of investing for the best interests of the client.

At the end of the day you have limited experience & limited qualifications to do what you are talking about - in fact it maynot even be legal. Would you give your money to someone with such qualifications and experience? I know I wouldn't even if I knew and trusted them.

To be honest this sounds like a recipe for disaster.

Edit: Another thing to consider is any family members who one day will get the inheritance, they may not like you playing round/having access to her accounts (family members can get jealous) and if money was lost they would view that as money you lost them not her.

I agree, my father's family was ripped apart when my Grandparents died and there wasn't an even split of the inheritance, half the family still don't talk to the other half.
Money does strange things to people.

best thing you could do would be to accompany her to an independent, hourly fee based planner. This way she wont get ripped off, and two you are getting your face into an industry your interested in.

Probably the best advice in this thread imo.

Above all, what I'd ask you is what in the hell you mean by charging your own grandmother for advice????

She has probably wiped your bottom, read you stories, and generally cared for you just by being your grandmother. If you do embark on such an ill advised course as advising her financially, wouldn't you in all decency just do it for nothing?

I also agree with this, there is no way I would charge my parents or my Grandparents for anything, let alone financial advice.
While I understand you are taking it on as a "business" agreement but I still don't agree with taking the money.

 

[Gerkin]

Largesse,
SOme more advice for you to consider.
The 1% exit fee - Try to renegotiate this or dont pull out while it still exists. This for one can lead for you being sued on this point alone
Is it a SMSF? Be careful about frozen funds, going back to accumulation, What type of pension is it. If its term allocated be careful again.

You may be ok on the investment side, but the only structure you could do these in is within a SMSF. Again if shes in super, DO NOT pull her out.

What sort of pension aged person needs part of there investment into a long dated call on the yen?