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Sharing wealth...

Discussion in 'General Discussion' started by Ace Modder, Apr 16, 2017.

  1. Skidder

    Man of Honour

    Joined: Nov 28, 2007

    Posts: 11,712

    Surely the only way to make this worthwhile would be to make it unfair. So each time there is a winner and you are gambling an amount you can afford to throw away in the hope that it is you.
     
  2. TheOracle

    Capodecina

    Joined: Sep 30, 2005

    Posts: 10,830

    Sounds like it could be open to all kinds of abuse, like selling the interest block on to another lender at a cheaper rate. That could then in turn be sold on, propped up against an asset.
    Who's to say that then won't be sold on again, and grouped together with other blocks of interest and assets at an ever cheaper rate. Sounds like it could get really messy.
     
  3. Psycho Sonny

    Caporegime

    Joined: Jun 21, 2006

    Posts: 29,691

    aka the lottery?
     
  4. Big Spender

    Wise Guy

    Joined: Oct 31, 2004

    Posts: 2,317

    It's called a menage in scots. the wife does one in work. each month everyone puts in a tenner and each month one person gets the pot of money.
     
  5. Psycho Sonny

    Caporegime

    Joined: Jun 21, 2006

    Posts: 29,691

    see above
     
  6. dowie

    Caporegime

    Joined: Jan 29, 2008

    Posts: 38,528

    slightly confused attempt to describe MBSs

    you're missing the synthetic CDOs though - MBSs alone weren't going to do too much damage
     
  7. TheOracle

    Capodecina

    Joined: Sep 30, 2005

    Posts: 10,830

    It's confusing by design, and yes I have watched the movie the big short :) Nobody understands it, that's the point
     
  8. dl8860

    Mobster

    Joined: Jul 25, 2010

    Posts: 2,630

    Location: Surrey

    Is the winner assigned randomly? Are winners allowed to win again or do they have to wait until everyone has been paid out before they are eligible again?
     
  9. Big Spender

    Wise Guy

    Joined: Oct 31, 2004

    Posts: 2,317

    At the very start everyone draws a month out of the hat. Once everyone has won it once then it starts again.
     
  10. d_brennen

    Capodecina

    Joined: Jan 30, 2009

    Posts: 15,112

    Location: Aquilonem Londinensi

    I get why people do this, to get a large pot of money in one go. I just find it bonkers and a waste of effort for something you can do on your own. It's this crazy scheme called saving :p

    E: to add the discussion and in case anyone who banks with Nationwide doesn't know, their iPhone/Android app has an "impulse saver" feature. I've used it for multiple things, like when giving up smoking or when I get annoyed at £3 coffee. When you pass up a temptation you slip the amount you saved in that instant to a savings account. Other banks/building societies might offer simiar, IDK
     
  11. dl8860

    Mobster

    Joined: Jul 25, 2010

    Posts: 2,630

    Location: Surrey

    It's like the opposite of saving. Saving is like forgoing money now so that you have a lump at the end. Only worthwhile if a) you get interest above inflation b) you have no better way to invest or c) you can't trust yourself in the meantime.

    This is like taking a chance to get the money earlier. Which may be a good thing if you can invest it. So it's like a chance to get an interest free loan. But I suspect most people partaking in these workplace schemes will be heading to the pub or spending it on a holiday.
     
  12. dowie

    Caporegime

    Joined: Jan 29, 2008

    Posts: 38,528

    not really, no
     
  13. TheOracle

    Capodecina

    Joined: Sep 30, 2005

    Posts: 10,830

    We'll agree to disagree then, as even the best financial minds struggle with it (and make of that what you will), but if you wanna send Selena Gomez over to explain it to me, feel free ;-)
     
    Last edited: Apr 20, 2017
  14. del_piero

    Gangster

    Joined: Apr 6, 2006

    Posts: 211

    This kind of scheme is very common in the South Asian community - my parents refer to it as a "kameti"

    I think I'm one of the few members of family that doesn't partake in one of these. I remember drawing up a spreadsheet for my dad, though, so he could keep track of payments that he had made into one.

    The way it worked, as I recall it, is that x number of people each put in y amount of money every z weeks/months. Each week/month the total amount of money divided by two and each half is given to a certain member of the group. The scheme goes on like this until all members have received one payment of half of the total amount, and then resumes in reverse order. So whoever recieved their first "half-payment" last, recieves their second payment first (if that makes sense).

    Need to have a very trustworthy person looking after the money, as well as being able to ensure that everyone contributes when they should.
     
  15. dl8860

    Mobster

    Joined: Jul 25, 2010

    Posts: 2,630

    Location: Surrey

    This is the worst yet. Sheer lunacy
     
  16. aardvark

    Sgarrista

    Joined: Jan 2, 2005

    Posts: 7,735

    Location: leeds

    yeah thats insane and utterly pointless unless you super crap at saving money.
     
  17. Psycho Sonny

    Caporegime

    Joined: Jun 21, 2006

    Posts: 29,691

    this is why it is flawed. why not stick the money in a saving account instead?

    what happens if one of them dies? leaves the country? or loses their job? or simply decides you know what **** you?

    all these schemes do is create an avenue for you to potentially lose money and create arguments and fights. why do this to yourself?
     
  18. Psycho Sonny

    Caporegime

    Joined: Jun 21, 2006

    Posts: 29,691

    pretty much what i said before. all the people at my old work involved in one were idiots so it proves the point that it's a stupid idea.

    one of them for example lived at home with their mum yet still managed to have half their annual salary on credit cards as well as a car finance loan.

    also to OP sharing wealth is about giving money away. e.g. I have £5 million in the bank. I'll give £10K to 10 people. Not giving random people a tenner then they all give it back to you 3 years later.
     
  19. del_piero

    Gangster

    Joined: Apr 6, 2006

    Posts: 211

    I've never fully understood it myself - which is why I have never contributed to one!

    Although every one that my dad has been part of has paid out fully and on time - he must be just lucky in that respect I guess!