On 09/17/2016 12:41 PM, Andrei Alexandrescu wrote:
On 9/17/16 11:31 AM, John Colvin wrote:
Ignorant here: Why would the foundation need a brokerage account?
Companies (non-profits included) usually have some cash lying around.
Some of that cash is needed for operational expenses (salaries, rents,
utilities, bills etc) and for more rare expenses (such as DConf). (Our
operational expenses are low, but we expect them to grow.) If there's
more cash than necessary for the company to run for a few months, it
makes sense to invest that cash in order to make more money from it,
which returns back to the coffers of the company. -- Andrei
That's how I hear it worked in the 50's, but does anyone but the brokers
ever gain any real interest from such accounts anymore? From everything
I've ever seen and heard, they pretty much all now work such that
basically all the earnings get scooped off the top by the banks/brokers
themselves (who don't assume any of the risk themselves anymore) leaving
the original investor with nothing more than their original invested
amount. Brokers and managed accounts are turning into the new "savings"
account anymore, you'd (literally) earn more annually just picking up
the loose change you see in a parking lot.