re: Putting money in mutual fund acct with relatives

So many people think that "combining accounts equals higher % return"...


If you invest seperately:
Acct1: 20,000 @10% ... end with $22,000
Acct2: 30,000 @10% ... end with $33,000
Total = $55,000

If you invest as one:
Acct1: 50,000 @10% ... end with $55,000
Total = $55,000


$55,000 = $55,000

All things being equal, and assuming you are not trying to use the money to allow for more diversification (which would negate the "all things being equal" anyway), it does not matter if you invest seperately or together. Therefore, unless there are other reasons, there is no reason to combine funds.