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finanzmaster
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The Fairest Reward System for a Wealth Manager

June 27th, 2018, 8:37 pm

What is the most fair reward system for a wealth manager?
In theory it is hardly possible to answer this question without oversimplifications.
But in [best] practice? 
Feedback is very welcome!
https://letyourmoneygrow.com/2018/06/27 ... h-manager/
 
frolloos
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Re: The Fairest Reward System for a Wealth Manager

June 28th, 2018, 1:40 am

I agree at least with your point #1, but that's like trying to ban the use of plastic. Ain't going to happen anytime soon.
 
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Gamal
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Re: The Fairest Reward System for a Wealth Manager

June 28th, 2018, 9:54 am

What is the most fair reward system for a wealth manager?
The one they had in the very beginning in the XIV Century. If you make money, you get a big bonus, just as it is now. If you loose money, they cut off your head.
 
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finanzmaster
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Re: The Fairest Reward System for a Wealth Manager

June 28th, 2018, 4:09 pm

@frolloos
I agree that point #1 will hardly take place in case of big institutional funds (alone due compliance rules, some of which are far from being rational).
But FinTech democratizes fund management. E.g. there is an Austrian StartUp Wikifolio, which gives opportunity to become a fund manager virtually to every one. 
The problem is that wikifolio is short-term oriented and drives retail investors into risky strategies that end up like this: https://letyourmoneygrow.com/2018/02/07 ... ays-price/ 
But maybe there will be a genuinely social fintech startup which might adopt my ideas. At least I hope so :)

@Gamal It was not only in XIV Century, it was a common practice in last decade of XX Century.
 
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Gamal
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Re: The Fairest Reward System for a Wealth Manager

June 28th, 2018, 6:23 pm

@Gamal 
It was not only in XIV Century, it was a common practice in last decade of XX Century.
Where, when? Didn't spot such a show.
 
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finanzmaster
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Re: The Fairest Reward System for a Wealth Manager

June 28th, 2018, 6:42 pm

>Didn't spot such a show.
For your own good :)

https://en.wikipedia.org/wiki/Russian_mafia(1992–2000: Growth and internationalization)