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SearchCheap way to get a track record32
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jb85    |  0 | |
| Thanks for the site. I've tried to read through most of it. I am thinking of starting a fund, but at this point the startup costs of about $25K for the first year and $10K/year after that are a bit much. Is there a cheap way to setup the fund with just myself so that I could establish a track record under the name of my spoek fund (which will accept clients at a later date, maybe in 3 years after i have an established track record) . I doubt I would need the documents, advertising, etc. so could save most of the intial $25K Could i just use RIA in a box, pay the $3K setup fee and that would be it (atleast until i accept clients)? Thanks again for the help |
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calesmith | 0 |
| Hi JB, Hmmmm. Once you're an RIA, that's going to come with some costs - for ongoing compliance, specifically, and after being set up by RIA in a Box. There are a few things you've gotta do there if nothing else to prepare for the compliance audit which could happen out of the blue any day after you're up and running. For instance, you've gotta keep your books up to date, so that means buying Quickbooks or some kind of accounting package; you're going to have to form a company, and then do or have your taxes done every year; you should keep a trading log; archive your emails; bleh bleh bleh. Most of the costs outside of marketing and IT are in the RIA itself, though I'd also say that research is not something you're going to want to skimp on. So I think the question is really whether or not there is a way to establish a track record running a Spoke Fund without having to be an RIA. And the answer to that is "not yet" although you've definitely got my wheels turning. Give me a week or so and then ping me at caleinthekeys@gmail.com if I don't post something here before then. Would guess you're not the only one wondering about the same thing... Thx. Cale |
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johnrothe | 0 |
| JB - take a look at Timertrac.com and ThetaResearch.com You could build up a track record in your personal account and these guys will do the verification. |
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| jb85 | 0 | |
| Thanks for the replies! I have thought about getting my personal record verified (I've been investing since october 2007 so if i did that, i would have 3+ years already). However I've read that many clients will not take a personal track record as seriously as a track record from a fund (they especially like to see the track record of the fund they are investing in). Does your experience match with this? As I'm thinking about it, I'm really just trying to avoid costs until I can get a sufficient AUM base, but in reality there may be no easy way around this. I may just have to accept that the first years are going to be thin as far as AUM until i get the track record going. Would you guys agree with this? |
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| jb85 | 0 | |
| After some more searching, has anyone used Covestor.com? It is free to manage a tracking portfolio (free advertising because others can see your results). They also have a option to manage other poeple money at no ongoing cost to you (the manager)...however the big negative is they take 50% of the management fees. At first glance it seems like a low risk option, if I completely fail, then there will be no cost to me. Anyone have any thoughts? THanks! |
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