brought to you by the every dollar app start budgeting for free today so i have some money that

a couple years ago i put in with a family member who had some investment stuff that he was doing and

it's not a huge part of like my savings or anything but it's just a little bit um and i guess it wasn't

really worked out in the

initial agreement, like what his cut of the money was going to be as he managed the investments.

And so we're working on that now. And what was mentioned to me was like a two and 20 structure

with like a 10% hurdle. So like we get the first 10% and then anything above that, like he would get

20%, but then somebody else mentioned the 25%. And to me, those know that's 25% number.

Is he a financial advisor or is this some back alley deal?

It's just a family member who talked to some finance people and worked out some investment thing and he's been doing that and making pretty good money. This is sketchy all around. What kind of investment is it? Is it in the market? Like index funds or mutual funds? Yes. It's in, yeah, it's based on the S&P 500 for the most part. So this is highway robbery. The standard in the industry is around a 1% AUM fee. That's assets under management. Sometimes it's one and a quarter, maybe upwards of two in a crazy scenario. But 20%, yeah, that's just anything above 10%, but like anything above the 10% if we make over 10% profit on the year. He gets 25% of anything over that. As you should, though. Does he work for an actual, like, registered investment advisor, like an actual firm? No. You keep saying, like, well, he's got some guys, like, he's like a middleman, and he's, I would get your money away from this guy ASAP. Who's this family man? Is it an actual, like a cousin, a brother? Yeah, an uncle. If he's not like running it through anybody else, he's handled it all himself, but it's just something that he figured out. Okay, so he's a DIY investor, and he's just offering his services to you for a steep fee?

I mean, we haven't really agreed on the fee yet.

What happens if he loses all your money?

If I lose that money, but it's not a huge part of my... How much are we talking?

How much have you given him so far?

It's only 10 grand.

Okay, so what I would probably do, Dan, when did you give him this money to invest?

About two and a half years ago.

Okay. How old is he?

40.

And does he do this regularly?

Like, is this like a side?

He had been working on it with his own money for a while

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