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Expected yield from a trust

Posted on 9/28/16 at 7:11 am
Posted by Finch
Member since Jun 2015
3153 posts
Posted on 9/28/16 at 7:11 am
What is the expected percentage of gains for a trust with 1 or 2 million?

What is the best way to invest the money safely but still have returns and a weekly payout
Posted by VABuckeye
Naples, FL
Member since Dec 2007
35561 posts
Posted on 9/28/16 at 7:17 am to
quote:

and a weekly payout


I have to ask why? It isn't a construction job with a weekly paycheck. It would seem to me that if you raise the number of disbursements you raise any fees associated with managing the trust. What's wrong with a monthly or quarterly disbursement?
Posted by TheOcean
#honeyfriedchicken
Member since Aug 2004
42488 posts
Posted on 9/28/16 at 7:23 am to
Extremely broad questions.
Posted by Finch
Member since Jun 2015
3153 posts
Posted on 9/28/16 at 7:23 am to
Both monthly or quarterly are fine

Basically just to supplement children's income until retirement age
This post was edited on 9/28/16 at 7:25 am
Posted by Finch
Member since Jun 2015
3153 posts
Posted on 9/28/16 at 11:44 pm to
Anything else you'd like to know to help narrow it down?
Posted by matthew25
Member since Jun 2012
9425 posts
Posted on 9/29/16 at 12:41 am to
Expect the trust to take 2 to 2.5% off the top. And they will churn the hell out of the stocks each month to make it look like they are doing something. They must be getting commissions.

They have no fiduciary duty. Yet. Dammitt.
Posted by Finch
Member since Jun 2015
3153 posts
Posted on 9/29/16 at 6:53 am to
Is there a better way to invest the money?
Posted by tigerrocket
Member since Aug 2008
162 posts
Posted on 9/29/16 at 2:43 pm to
Who is the trustee? and How is the trust invested?
Posted by LSUFanHouston
NOLA
Member since Jul 2009
37109 posts
Posted on 9/29/16 at 5:22 pm to
A trust is simply a way to control money.

Investing it for yield is no different than any other type of account. The more aggressive you are, the higher the potential yield, or negative yield.

Your yield will be reduced by not only management fees (like any other investment) but also fiduciary fees. You also have tax prep fees to consider (a bank trustee will often wrap these fees inside the trustee fee).

With a simple trust, you are required to distribute all income. Complex trust, you don't have to.

A trust like you are talking is a complicated issue and you need to speak with a qualified attorney and a CPA.
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