• Jerremy Alexander Newsome

Managing Other People's Money

Managing Other People's Money.

Many Real Life Traders have asked about the process to become legally able to manage other people's money – more specifically, for friends and family members. Before I describe what I discovered, let me list four points for you to CAREFULLY consider before reading on.

  1. The process is slightly different based on where you live. Please contact your state's security office to announce your intent and verify the process. http://www.nasaa.org/about-us/contact-us/contact-your-regulator/

  2. Investing involves risk of losing money. Are you prepared to lose your loved one's money? Could it forever ruin a valued relationship if the market makes a big swing and the account takes significant losses even if you took proper precautions?

  3. Have you considered a competent financial advisor who has a proven record of successfully managing other people's money? Many people I meet are surprised to find out that my financial advisors average 16% with my money.

  4. Have you considered showing your friends the free educational videos at http://www.RealLifeTrading.com and then sharing your trade ideas? A trading team is a great way to enhance your education, have someone who can check your trades before you place them, plus multiple people researching trades is a great way to expand the number of trade opportunities you can find.

The license most people will need is a Series 65. In short, the process is to register with your state, pay the fee and then pass the exam.


Step 1 is to contact your state office to verify what license you need and the process you should follow. A list of contact info by state can be found at http://www.nasaa.org/about-us/contact-us/contact-your-regulator/ Be sure to ask the following questions

  1. If it is not a Series 65, which license do you need?

  2. How much does it cost to take the exam? ($120-$135 is reported on most websites)

  3. How long does it take NASAA to process the form to enable you to sit for the exam

  4. How long is the window in which you have to pass the exam?

Step 2 is to study for the exam. Once you register with the state, you will have a long, but limited time to pass the exam; for this reason, I suggest you study and prepare yourself before you complete the registration process to sit for the exam. You will likely need to purchase study materials. You can search the Internet to find study materials, work books, sample test questions, in-class training and more.


Step 3 is to complete the registration process for your state, which likely entails completing Form U10 and paying a fee (expected to cost $120-$135). Instructions on the process and a link to the form (must be filled out online) can be found at http://www.finra.org/Industry/Compliance/Registration/QualificationsExams/Qualifications/P121907


Step 4 is to pass the exam. You will have to sign up at a testing center to schedule your exam; an appointment might not be available for a few weeks, or a testing center might involve a considerable drive. Also, be sure you check with the testing center in advance to ask what you can bring inside the center. Some items of clothing, jewelry, etc. will not be allowed inside the front door of the testing center.

Before you begin the process, please think carefully about the consequences of losing a loved one's money and the subsequent impact to your relationship. I highly recommend you consider a competent financial advisor. A video on How To Choose The Best Financial Advisor can be found at https://www.youtube.com/watch?v=QqcjCjWkGpM Please email me at Brad@RealLifeTrading.com and I can connect you with one of my Financial Advisors. Another great alternative to managing a loved one's money is to help them get up to speed on the education you have found and then compare trade ideas with each other; this way, any losses are the responsibility of each individual, and the status of the relationship is much safer. Whatever you choose, always remember…

Trade on logic, not on hope

Brad Reed

Brad@RealLifeTrading.com

Sources: Feel free to read more complete information at

http://www.investopedia.com/articles/financialcareers/07/securities_licenses.asp

http://www.ria-compliance-consultants.com/investment_advisor_investment_adviser_rep_series_65_exam_faq.html#11

http://www.nasaa.org/about-us/contact-us/contact-your-regulator/

http://www.finra.org/Industry/Compliance/Registration/QualificationsExams/Qualifications/P121907

Choosing The Best Financial Advisor https://www.youtube.com/watch?v=QqcjCjWkGpM

http://www.nasaa.org/

http://www.finra.org

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