Lol bottom line don’t do the cfa. Work outside family business for 1 year to make your dad happy. Learn the textile business. Hire private bank to manage your excess money from the business. In the future maybe consider doing an mba. Your daddy can prolly promote you to ceo of your company. And you can will increase your odds of getting in to a good school. It might teach you how to think better and how to invest!
everything is actually pretty expensive right now. We are at cyclical highs. Now is the time to pay down debt or build cash reserves.
Good mba is loosely defined as top 20 mba school. The typical candidate will prolly have 3 to 5 years of experience. I think you need a minimum 1.5 year to check off that point. Also to earn charter you need 4 yrs finance exp.
Anyways if you are not getting the credentials then I don’t see the point in doing either. Sure you’ll learn stuff, but you’ll waste stuff learning shit you don’t need as well. Imo the best thing that will help your family is for you to learn accounting and how to invest. These two things will help you evaluate your business and compare it to others and may just convince you to diverisfy.
Most old rich people I know don’t like to try new things. Imo they prolly get approached a lot to do many different things, so it’s prolly smart for them to be hesitant. Many who have been successful do usually use extra money for real estate or fixed rates back when rates were a lot higher.
Also private bank will typically handhold you in investing while charging you 1 percent. So that’s prolly like 150k per year, if you are worth 15m. What’s even more funny is they’ll just buy mutual funds from their bank that will charge you another percent. Anyways if you are going to focus on learning textile business, you are prolly better off paying a guy to manage your excess money for you.
Makes sense, you said that I learn accounting and how to invest, how do you propose I do that?(Are you reffering to CFA?)
Yeah,I dont think the 150k is worth it lol, its too much as returns are not that high aswell.
Due to recession now,there is no point for a private banker as most likely value of investments will dip further during 2020.My parent’s friend who is worth atleast 150m has earned his fortune from real estate,so he advices my parents what to buy,when to buy,when to sell, etc and my parents trust him blindfoldedly and he has helped my parents earn good profit from flipping real estate.
Accounting would really help the family business,as I asked my dad about the Rate of inventory turnover ,to see if he has put alot of money in stock,and he said that he dosent know (he said maybe 3,is that good?)
you are still focused on credentials. when you can easily learn this stuff outside of that. there is a ton of stuff on youtube that can teach it to you for free. since you are undergrad you can take accountign classes but this might negatively impact your grade, if you dont do well. you’ll need a good gpa for a good school.
150k is worth it, if they are managing 15m and you dont know what you are doing, they’ll prolly earn you at around 5x that.
real estate is what everyone does because there are tax benefits associated with it. similarly msot rich people have private businesses since it allows them to minimize taxes by claiming deductions. flipping real estate is typically a bad idea. the smart real estate people just refinance their properties, that way they dont recognize taxes, and they hold on to the tax deductions associated with property. msot real estate will have paper losses but will be cash flowing assets.
dont know much about wholesale business but yours seem kinda low which prolly means you have a ton of inventory. a high inventory turnover is typically preferable as it means you are selling your inventory fast (or you dont have enough inventory on hand, which means you can make more money by buying more inventory). learning accounting istn just for operational uses, you can also use it to evaluate other businessses, which if ur rich is something you’ll want to have if you want an edge.
Oh wow,by the way do banks assure a return or is it still at your risk?
My family is in Dubai,so there are no taxes except VAT,in that case flipping is worth it I guess.
Yeah,I spoke to my dad as to why isn’t he calculating such ratios,he said that he will when the main accountant comes back from his vacation.But I got him to believe as to why calculating that is important, so that’s good.
I forgot to mention,my mum is a agent for foodstuff and sundries , my dad earns 2x than her , but I also want to takeover my mum’s business as she is a agent for the biggest supermarket chains in Dubai and she has good connections with suppliers so I don’t want to waste those resources she has.
returns are never assured, thought i have heard others make this claim, but if they do, they are very likely buying expensive premiums at the expense of the majority of your returns or are comitting fraud so avoid them. the closest you can get to an assured return is a us bill, which yields roughly 2.5%.
anyways sounds like you got an awesome thing going for you with plenty of options. the benefits of being baller, so i envy your positions. use your connections well. anyways dubai is also a pretty awesome spot for a tourist, i know you guys have a ton of my filipino bretheren over there working and from what i hear they live kind of roughly. so treat them nice, esp if they are hot. lol
Isnt a fixed deposit a higher assured return than US bill?I’m from India,and my parents have fixed deposits in India,I was shocked to learn that the rates touch 7%,keeping account into currency fluctuations its a really good investment ,but my parents keep more in Dubai as our business is here.
haha not a baller,my parents are frugal for some reason(our cultural group “sindhis” is known to be selfish and frugal hahah )Maybe because they started of with nothing,and are not willing to let money go away? idk
Yeah,there are many filipinos here,they actually dont have it rough atleast the ones with stable jobs as they are known to spend most of their incomes on going out,restaurants ,atleast the millenials lol,they dont send back their salaries back home ,and spend it all
but the deposit will have default risk from bank. india has higher rates cuz it typically has higher inflation. though that may not be the case right now.
never let money go. let money grow! there is nothing wrong with being frugal! anyways 15m usd net worth from just ur parents is pretty baller to me. imo, anyone with 3m is golden.
aww saddd. anyways i saw a special on dubai yesterday via cnbc. pretty amazing that their enteir economy is based off trade and tourism and that oil is only 2% of gdp.
personally i dont see the allure of the desert. but i have seen some chicks i met become insta thots over there and the malls look banging. and shes like a swedish chick.
Yes,but inflation dosent matter if your not going to spend the money in India,if you withdraw it to Dubai,its worth it right?
Yeah,most of dubai’s expenditure is on tourism,even now for eid holidays ,hotels are mostly booked and 5 star hotels start at 130 usd with food and beverages lol.Dubai is just affiliated with oil in social media ,as its rich and is arab country…Saudi Arabia has lot of oil,their richest family is said to worth $1trillion,the family has 15,000 members but around 2000 have most of the wealth
I’m born in Dubai and went to the desert only once…yes you cant trust insta thots,maybe sugar babies lool.
malls in Dubai are very good,Dubai mall the most famous of them all is too overrated,as its too crowded and too big.
Such as Mall of the Emirates have luxury to basic range shops and has all the entertainment facilities and it isnt tht crowded compared to dubai mall.
