My brother wants me to open account with Vanguard so he can buy and sell funds. I think he knows a lot about it. But I am responsible for his money. Not him. I called the special needs trust line at the bank the trust is in. They said I'm not going to get someone to tell me yes or no to individual purchases my brother wants to make. That a financial advisor makes the investment plan for the trust themselves. My brother won't want that he wants to pick the investments. Not sure what to do.
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To me, I'd try to figure out first if he understands what Vanguard is & how it's not what a brokerage house does. Barb is spot-on about wondering if he understands risk....
? Has he had a brokerage account before? Or ever met with a FA?
Does the lawyer who set up the trust say that it's okay (legally, doesn't violate the statute under which the trust was set up) to allow your brother access to the money?
Vanguard has funds that have "target retirement dates"; meaning that if one is expecting to retire in 2025, they have a fund balanced between stocks and bonds, all in one fund. Would that satisfy your brother's yen to be in the market?
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Look, your brother doesn't work and is being maintained at taxpayer expense. Your mom left him money in a trust so that YOU wouldn't be burdened with his care.
I'm assuming your brother wants to do some day trading. For people knowledgeable of the market, and have the time, energy and money to do it - it can be very profitable. But it's not for the nervous or the faint of heart. People need to be cautious when investing money they may not be able to afford to loose. That said - much to my surprise- Wall Street seems to love The Donald and since his election the market has been very positive. But I would caution any investing at this time as our President is a wild card and things could go downhill very quickly.
So - to finally get to the point and your question: It doesn't have to be an all or nothing thing. In fact diversification is the smartest route to go. Set up an account with a reputable on line brokerage - start with a reasonable but conservative amount of money. Let your brother manage his account - setting a six month review for you to determine how successful he is. With the rest of the money, seek an experienced financial planner from a reputable brokerage or bank and ask for a balance portfolio aimed towards future income growth potential.