After reading La Papillion’s and Derek’s blogs about how they spent their parents’ money, I also wish to share could invested the money from my dad. Because our circumstances will vary, our stock portfolio allocations are different also. The money didn’t come from my father, rather, the money arrived because we sold a flat and bought a new one about. Instead of using the sales proceeds from the old flat to cover the new flat, we retained the sales proceeds as cash and took out financing.
Strictly speaking, it is my father’s money, because he paid for the old flat. However, it could also be viewed as taking out a home equity loan which I am responsible for paying off (there is absolutely no change in the flat ownership). The money became a joint investment, and we setup a new joint bank or investment company, CDP and stockbroking account for the investment (on hindsight, this is an important step as it we can check the way the account is doing). The terms of the accounts are similar, it is “capital assured” in the sense that I must repay the loan by the end of the loan tenure.
It’s hurdle rate is the loan interest of 2.6% (HDB concessionary loan interest). However, the investment horizon is a lot longer, at almost 30 years. Because both my dad and myself are share investors and because of the long time horizon, we invested the amount of money in a portfolio of shares and cash. After reading the two 2 gentlemen’s blogs and reviewing my very own experience, I think our parents’ investing experience and the way the money is viewed have a very huge impact about how the amount of money is eventually invested. Within the first factor, my dad is a talk about investor, so he is very comfortable with investing the amount of money in the currency markets.
In contrast, my mom has bad experience with unit and shares trusts, so she is only more comfortable with bank preference shares. On the second factor, if the amount of money can be regarded as a stand-alone account with capital warranty, then more than likely I would have spent it mainly in bonds and choice stocks.
On the other hand, if the money is viewed as financing for my very own portfolio, the money would be committed to shares. There would be almost no change in the risk urge for food. In my own case, the money was seen as a joint investment of both my father’s and my money. So as the money was still committed to stocks, it has a lower life expectancy risk hunger since my father’s money is involved.
Only good shares would be chosen, with the first indication of trouble, the particular stocks would be sold out. This has led to smaller revenue but also less loss compared to my very own account. Thinking back, managing my father’s money has become a full circle. I think a genuine amount folks would have the same experience as me.
- No TDS if interest is up to Rs. 5000 in one financial yr
- Know The Non-Current Assets
- It is assumed you have retired on or after the relevant preservation age group
- Establishing Rapport
When I was in university, I would suggest to him which stocks and shares to buy (I had not been been trained in stock analysis then), so in a way, I was helping to control his money. When the shares made money, I’d feel very pleased with my recommendations. But when the stocks and shares lost money, I’d silently go away expecting it would be ignored with time. During the full days of the Asian FINANCIAL MELTDOWN, losses weren’t around 30-40%, it was almost a complete wipe-out!
But my dad never blamed me for the loss. Today Fast forward to, we are actually officially entrusted with this parents’ money. I assume we have all gotten more sensible and accountable in handling the money, understanding that the amount of money is hard-earned and earmarked for our parents’ pension. Taking smaller risks and making smaller profits is more important than taking larger risks and making bigger profits. The greatest satisfaction in handling my father’s money is not in viewing how much cash have designed for the account, but in seeing the satisfaction on my father when he views how well the accounts is doing. This, to me, is priceless.
They come in all sizes and shapes, some left wing quite, others, like Pound, very reactionary, much I like him as a poet however. Turn to seeing it forward. It could start off as a hub maybe. Give me a couple of days and I’ll email it for you. I have some good super geek buddies that would like to help the reason.
And I still have a few contacts in the news business that owe me mementos. OK Bunco, you put it all down and I’ll try to jazz it up a little. But how would we disseminate it? I’m not absolutely all that hot on technology. I’m only a word man. Actual the Fed is both government and private, as unusual as that noises. But the handbag strings are held by the Treasury Department. However my thoughts were more along the line of a public referendum demanding either the removal of the Fed or a proper monetary infusion to balance the economy and pay back your debt.