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KPOP SECRET MEME PART 323

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idek what trusts are /o\

+1 can some kind soul explain pls

google

im never going to come into that kind of money all at once so im prolly never going to need to know what it is but im curious too

its basically an investment account meets legal framework. you draft it up with a lawyer and usually its held within one of the wealth management firms, although im sure its possible to do it yourself. the way mine is set up declares who the main beneficiary is, what to do if i die and protects from being touched in any legal issues (divorce or getting sued or w/e).

so you have the main principal account that gets invested into different areas, usually mutual funds or ETFs (could be stocks or bonds too) and those have certain returns. those returns are deposited into the declared beneficiary bank account.

ty anon for explaining.

how do u know which to invest in and all that (stocks/bonds) @-@

i don't necessarily do it all myself. most of these firms will have questions they ask you to find out your risk tolerance, so the least tolerance will have higher bond % while the ones that want risk will have very very low bond. i dont really play with individual stocks except some apple ones that were given to me.

iirc rn mine is mostly ETFs and market funds so something like 20% us bonds 50% s&p index and 30% international, although the exact percentages escape me.

oh wow i see thanks anon for all this info will bear it in mind!

no wonder ppl play with shares and stuff, was wondering how they build portfolios, must be coz tehy have a starting base/principal amount like u mentioned ohhhhhh

it is possible to lose money? since they are investment, obviously your financial adviser(?) would do they best to advise you to invest in good things but there's a risk right? (sry i rly dk how real life finances work)

well yeah obviously but thats why for big sums its generally heavy on bonds and stable industries v. commodities and fancy companies. there's always a risk, even with 100% bonds, but risk = reward. its a balancing act, and its why its recommended that you only really check your account twice or so a year, cause otherwise regularly fluctuations will freak ppl out.

once i get past 1.5million tho im planning on getting into real estate just to diversify away from pure market worth.

omg anon u go girl, i hope i will be able to make some smart investments in the future too

Same 😿

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