Free Republic
Browse · Search
Bloggers & Personal
Topics · Post Article

To: Dan Nunn
By law there are rules governing things like this.

First write everything down. Who paid in what, get things notarized, etc etc. Keep track of who is going to get paid what and let everyone know that they can lose everything. Write up HOW decisions are going to be made regarding the portfolio...

Even if they don't lose, put it in writing before hand.

Don't put yourself out there as the 'organizer' otherwise later on people could come after you.

Also you cannot take a cut of the profits. You can only get $ based on what you put in, otherwise you can get in trouble with the state. IE you cannot charge fees or take out money for admin costs etc.

4 posted on 09/25/2005 10:19:45 AM PDT by maui_hawaii
[ Post Reply | Private Reply | To 1 | View Replies ]


To: maui_hawaii
First off, thank you very much for your post. This is the wealth of knowledge I was hoping I'd get! I appreciate it very much.

First write everything down. Who paid in what, get things notarized, etc etc. Keep track of who is going to get paid what and let everyone know that they can lose everything. Write up HOW decisions are going to be made regarding the portfolio...
Even if they don't lose, put it in writing before hand.

How very true. Keeping track is essential, and I've come to think that everything should be 100% in-or-out, meaning everyone always pays the same. Trying to separate profits when one person put in a quarter of what everyone else did means only more headaches.
Plus, I'm dealing with several poker players here. I think they're understandable with losing the money they put in. Heck, their odds are better at this than poker most of the time!

otherwise you can get in trouble with the state.

Very sound advice. Thank you very much. Administering fees, etc, really wasn't in my plans, but good to know. If everything is decided as a group, there's less of a chance, as you mentioned, as me being coined the organizer.

I am positive we'd need to have a 'rules meeting' of some sort and come up with ground rules for the group. Rules, such as, a unanimous vote is required to invest the group's pool, or something like that. If you can think of any ground rules that would be very good to mention, please, by all means, let me know!

6 posted on 09/25/2005 1:57:24 PM PDT by Dan Nunn
[ Post Reply | Private Reply | To 4 | View Replies ]

Free Republic
Browse · Search
Bloggers & Personal
Topics · Post Article


FreeRepublic, LLC, PO BOX 9771, FRESNO, CA 93794
FreeRepublic.com is powered by software copyright 2000-2008 John Robinson