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re: Putting money in mutual fund acct with relatives
Posted on 2/24/13 at 9:10 am to LaFBfan
Posted on 2/24/13 at 9:10 am to LaFBfan
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.
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.
This post was edited on 2/24/13 at 9:18 am
Posted on 2/24/13 at 9:47 am to JPLSU1981
See my post above
I think it explains it
I think it explains it
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