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Who manage my Fund after the end of my life?
Posted: Wed Dec 07, 2011 12:11 pm
How to set up a fund to provide a stable income for my family monthly? so after the end of my life, I will be worry free to go.
How can I trust the fund and provide a stable return without my watching?
Does anyone have any suggestions?
Thanks in advance for any suggestions
Posted: Wed Dec 07, 2011 12:17 pm
Your estate lawyer (the one who drafted your will) can offer some advice and suggestions.
Posted: Wed Dec 07, 2011 1:05 pm
I think you raise a very good question and it is one I have often asked myself. If you are referring to your own trading, your own fund, then my advice would be to forget it - your wife/lawyers/executors should be advised to close down all the positions on your death and re-invest unless you are talking about a broad range of decent blue chips stock in major markets. If you are talking futures trading then surely the advice is "fuggedaboudit".
The "re-invest" is not so simple. I don't believe that many investment professionals make money for their clients; I believe that most lose money, especially those that deal for retail. Unfortunately, at the retail level, the charges levied on retail funds and services are so obscene that it is a battle to pay for costs let alone make any investment return.
The only real answer would be to try to educate your wife a little in the investment world. At least to guide her in the direction of what sort of funds you think are worth her investing in after you are gone. And at least to steer her away from the sharks who prey on retail with the totally useless products. Unfortunately, in my own case, I may as bay at the moon as try to discuss investments with my wife.
Posted: Wed Dec 07, 2011 2:40 pm
That is a subject that a good estate attorney can help you with (for a nominal fee, of course!)
You can set up instructions in your will - for example give $x in cash (for immediate expenses, etc.), invest $y in a pre-selected investment portfolio with a conservative allocation 50/50 world stocks/world bonds and take the rest and buy a FIXED (not variable) annuity from a highly-rated insurance company. Your heirs will receive a guaranteed income stream for life.
You can set it up via a number of legal structures (trusts, etc.).
Posted: Wed Dec 07, 2011 4:53 pm
drm7 wrote:and take the rest and buy a FIXED (not variable) annuity from a highly-rated insurance company. Your heirs will receive a guaranteed income stream for lif.
Er, preferably not at current interest rates though! But who knows..........
Posted: Thu Dec 08, 2011 1:21 pm
I would setup some kind of trust. You can dicate the terms of the trust, how the money is managed and paid out. If interest rates weren't so low, I would suggest a Fixed Annuity. At current rates, your not getting a good income stream.
Your a currency guy, right? How about a combination of currency CDs to help with the yield. https://www.everbank.com/personal/forei ... ncies.aspx