Skip to main content
No. of Recommendations: 0
I'm not sure if this is the perfect board but I couldn't really find one that would be any better. Anyway, here is my situation:

I currently manage a retirement portfolio for my father and for my stepmother (two separate accounts); a taxable account and a retirement account for myself; I provide advice for my mother's retirement account to such an extent that I am effectively managing it; and I have a friend who wants me to start managing his retirement and taxable accounts as well.

It's getting to be a bit too much work to manage each individual account, and so I am considering opening a "Friends and Family" account with Interactive Brokers, which would allow me to make a trade that would be distributed automatically to the other accounts. However, my understanding is that there is a certain limit to the number of accounts you can attach with this setup. I am not a Registered Investment Adviser, so I think this puts further restrictions on the number of accounts I can manage. I would like to be able to add more in the future. Not a lot, but my sister and brother in law may ask to join at some point, or other friends/family, etc. Note that pretty much none of these people would be accredited investors.

My question is, is this the best type of account for what I'm talking about, or should I be thinking about starting a Partnership of some kind instead? I am good with the investment side of things but the legal side is not my forte. If anyone can give some advice on what sort of setup would be best it'd be much appreciated.
Print the post  


What was Your Dumbest Investment?
Share it with us -- and learn from others' stories of flubs.
When Life Gives You Lemons
We all have had hardships and made poor decisions. The important thing is how we respond and grow. Read the story of a Fool who started from nothing, and looks to gain everything.
Contact Us
Contact Customer Service and other Fool departments here.
Work for Fools?
Winner of the Washingtonian great places to work, and Glassdoor #1 Company to Work For 2015! Have access to all of TMF's online and email products for FREE, and be paid for your contributions to TMF! Click the link and start your Fool career.