Depressed investor/conservator
I have been given the responsibility for investing a relatively small amount of memorial money for my niece after the death of my brother, to be held under she is 18, ideally to be used for school, but not necessarily a demand.
The amount is over $1000, and I calculated in 5 years, even at 15% interest, the amount would only double in that time. And WHO knows how much school inflation will increase in the same time. I only say 15% because it allows a 5 year doubling, not that I expect I could get that return anywhere securely.
Worse than that, I'm basically a pessimist, and figure NO investment is particularly good. I considered savings bonds, one adjusted with inflation, but of course it'll just squeek along, AND I don't even approve with the federal government's irresponsible debt accumulation to want to invest there!
I imagine perhaps the best investment is to hold it as "paper investment" spend it in my cash flow (reducing my debt), and pay the interest myself at the end. It is "useful" in that way, and I certainly have no care on doubling it in the end. As a financial decision, I have little fear I "couldn't pay up" in the end, or that I'd have any reason to reverse this agreement (to myself).
It's most curious when imagining holding a family member's money for an investment. On a financial side it (1) keeps money in the family (2) reduces family debt, (3) makes it easy to be generous with interest.
On the other side, as an uncle I can question how my so-called "generosity" in interest relates to other generosity towards her, in some sort of connecting. I can't explain, but hopefully clear - basically it is just plain WRONG to call INTRA-FAMILY gifts as INTEREST in any shape or form. It is a gift plain and simple. It is SUCH because we're not in positions of equals, and the whole interest thing is just in my mind, like a "guilt response" - like throwing extra money on the table at a restaurant to make sure I don't pay too little in a shared bill. It's just a game that is played by people who can afford to throw money away.
The the other side is control. I feel responsible for the money, but MY responsibility won't help her. She ought to be encouraged to make her own decisions on savings, and maybe even ADDING to the savings.
I think of my own savings account as a child where all my birthday money went. For me, it went IN and rarely out, and half because of my disinterest, and half parents who wouldn't follow through with transfering money when I asked for something to spend on my money.
But anyway savings interests are a joke, and overall kids saving for college is a bigger joke for me. Maybe it'll pay for books in a first year of school? But it's just peanuts.
College like everything now-a-days is paid through DEBT - borrow now and hopefully earn enough money in the end to pay it of AND be better off than without the diploma. Overall a good bet, but not guaranteed at all, and I've heard crazy stories of cooking school and teaching degrees that opened $50k in debt and no job to pay for them.
Perhaps in 5 years I'll still be doing well, and can help her with school costs, but my girlfriend's 3 kids also might need help. It is a hard place - how to mix guilt at well-being, generosity, and what really helps family members become their own person. Not really something I can do at a distance, and I am overall distant from my niece, not overly welcome in her new family.
So I suppose the whole money thing is just a sliver of bigger questions - what is my place when I have no kids of my own? What can I do to help? What do I want to do?
Overall my honest answer is I want no part of money, and if I have more than I need, more than is needed in my immediate life, where ever that is, then I'd just as well give it away for someone else to find good for it.
Sure I want money well "invested", helping to make the future reach the potential available, and protect the world that sustains me and my family. Who can say what that investment really is?
I might as well "give it to my brother's ex-wife" and let her decide what's best. If I trusted her, that would be ideal - since she might best know what's good for her daughter. On the other hand, she's busy over her head dealing with day to day things, I imagine she has few thoughts on investsments for college for her kids. Maybe I'm wrong, but no information to guess.
I won't end these questions, and will hold the money for now. I don't have a clear answer at all.
The amount is over $1000, and I calculated in 5 years, even at 15% interest, the amount would only double in that time. And WHO knows how much school inflation will increase in the same time. I only say 15% because it allows a 5 year doubling, not that I expect I could get that return anywhere securely.
Worse than that, I'm basically a pessimist, and figure NO investment is particularly good. I considered savings bonds, one adjusted with inflation, but of course it'll just squeek along, AND I don't even approve with the federal government's irresponsible debt accumulation to want to invest there!
I imagine perhaps the best investment is to hold it as "paper investment" spend it in my cash flow (reducing my debt), and pay the interest myself at the end. It is "useful" in that way, and I certainly have no care on doubling it in the end. As a financial decision, I have little fear I "couldn't pay up" in the end, or that I'd have any reason to reverse this agreement (to myself).
It's most curious when imagining holding a family member's money for an investment. On a financial side it (1) keeps money in the family (2) reduces family debt, (3) makes it easy to be generous with interest.
On the other side, as an uncle I can question how my so-called "generosity" in interest relates to other generosity towards her, in some sort of connecting. I can't explain, but hopefully clear - basically it is just plain WRONG to call INTRA-FAMILY gifts as INTEREST in any shape or form. It is a gift plain and simple. It is SUCH because we're not in positions of equals, and the whole interest thing is just in my mind, like a "guilt response" - like throwing extra money on the table at a restaurant to make sure I don't pay too little in a shared bill. It's just a game that is played by people who can afford to throw money away.
The the other side is control. I feel responsible for the money, but MY responsibility won't help her. She ought to be encouraged to make her own decisions on savings, and maybe even ADDING to the savings.
I think of my own savings account as a child where all my birthday money went. For me, it went IN and rarely out, and half because of my disinterest, and half parents who wouldn't follow through with transfering money when I asked for something to spend on my money.
But anyway savings interests are a joke, and overall kids saving for college is a bigger joke for me. Maybe it'll pay for books in a first year of school? But it's just peanuts.
College like everything now-a-days is paid through DEBT - borrow now and hopefully earn enough money in the end to pay it of AND be better off than without the diploma. Overall a good bet, but not guaranteed at all, and I've heard crazy stories of cooking school and teaching degrees that opened $50k in debt and no job to pay for them.
Perhaps in 5 years I'll still be doing well, and can help her with school costs, but my girlfriend's 3 kids also might need help. It is a hard place - how to mix guilt at well-being, generosity, and what really helps family members become their own person. Not really something I can do at a distance, and I am overall distant from my niece, not overly welcome in her new family.
So I suppose the whole money thing is just a sliver of bigger questions - what is my place when I have no kids of my own? What can I do to help? What do I want to do?
Overall my honest answer is I want no part of money, and if I have more than I need, more than is needed in my immediate life, where ever that is, then I'd just as well give it away for someone else to find good for it.
Sure I want money well "invested", helping to make the future reach the potential available, and protect the world that sustains me and my family. Who can say what that investment really is?
I might as well "give it to my brother's ex-wife" and let her decide what's best. If I trusted her, that would be ideal - since she might best know what's good for her daughter. On the other hand, she's busy over her head dealing with day to day things, I imagine she has few thoughts on investsments for college for her kids. Maybe I'm wrong, but no information to guess.
I won't end these questions, and will hold the money for now. I don't have a clear answer at all.
posted by Ares Olympus at 11:11 PM
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