It’s crazy you get to $100 mil and don’t just call it a day and go experience all life has to offer.
hoocoodanode on
I also immediately assumed this was a story about unrestrained greed, but there does seem to potentially be some shenanigans from RBC, the bank in question. I think the outcome of this case might end up surprising some people.
> However, the complaint noted that RBC advisers didn’t understand or encourage DeVocht’s desire to “essentially retire” by offloading Tesla options to invest in secure instruments for passive income.
> In contrast, the advisers recommended that he establish a company and roll his securities into it. They asked him to execute trades within the newly formed company and hold as much Tesla stock as possible. This strategy would have supposedly helped DeVocht avoid high taxes by convincing the Canadian tax authorities that the legal entity is an investment holding company and isn’t engaged in active trading. Furthermore, the lawsuit claims DeVocht was also advised to donate to the RBC Charitable Gift Fund for charitable tax credits, giving over $8 million in late 2020 and $17 million a year later.
EbbOpen5242 on
Read the Article
Adidassla on
Highly regarded trader👍
Musicman1972 on
Literally no chance he would ever have listened to anyone else anyway.
A day trader who went from tens of thousands to hundreds of millions is never going to think it can end. I can picture him pointing at a financial advisers lowly 911 Carrera and thought to himself “is that it? Have fun staying poor.”
Hamster8000 on
Oh this isn’t an article about Elon Musk.
ToddBradley on
Does Canada have the same concept of fiduciary responsibility as in the US? And if so, were his advisors at the bank legally bound to act as fiduciaries? This seems pretty cut and dried. Either you have a legal obligation to not let this happen or you don’t.
I read the article and it doesn’t once use the word “fiduciary” which is the crux of the whole matter.
jello1990 on
And it just never occurred to him to liquidate even a little of that? idiot
Darko002 on
Thats more money than I’ll ever handle in my entire life. I cannot say that I exactly feel sorry for someone with that much to lose.
martinbean on
Dude must have missed all of those “Your capital is at risk” warnings.
GoldanReal on
If he doesn’t lose his mind, he will make it all back.
turbosprouts on
Seems odd to me to expect a bank or FI to do a dummies guide to financial responsibility for someone with more than a quarter-billion $ in assets, grown from 20k.
Maybe they’ve been scummy too, but if they argue ‘he had $300million, we assuming he wasn’t a total idiot’ it could be fairly compelling.
Meanwhile, as other have said: if you’ve turned 20k into 20M, surely you realise 10million of that and stash it in index funds or something else safe? Definitely if you’ve turned 20k into 100m, then you have to realise half of that to build your fallback position. 50m, sensibly and safely Invested, is a luxury lifestyle for the rest of your life, even if you proceed to burn the rest.
BadUncleBernie on
I love the smell of greedy fucks falling in the mornings.
Intelligent_Top_328 on
I’m the opposite. I never got the account that high but I got it high enough where I sold some profits to buy multiple houses in Vancouver and still have enough tesla stock to ride.
Love Elon. The man made me generational wealth. Love the guy.
Overwatchingu on
So the plaintiff states that he started with about $70,000, amassed $26million CAD by trading Tesla shares/options, and then went to RBC with his $26million looking to “essentially retire”.
Based on his statement that he told his adviser he was looking to retire in the near term, the adviser should have told him to sell most of his Tesla portfolio and invest the funds in relatively safe options like GICs, government bonds, insurance companies, etc.
Instead, he somehow ended up with a brokerage line of credit and invested millions more into Tesla stock. Either he’s lying about what he told his adviser his investment goals were (near term retirement) or his adviser saw an opportunity to meet their sales goals and get a bonus by advising this guy to make investments that weren’t in his best interest.
I_might_be_weasel on
Well how was the bank supposed to know Musk would make that weird face at a Trump rally?
realitydysfunction20 on
It is examples like this that really showcase how wealthy people will act when they make mistakes. They will look for anyone to blame and become litigious at the first opportunity.
When I was working as a financial planner, the most dangerous clients were ones like these. Excessive risk takers who will clearly seek out a scapegoat as soon as they fuck themselves over.
I have no love for banks and some shady financial “advisors” read: salespeople but people like this really take the prize for stupidity.
Cute-Rate8655 on
Anyone who invests in a company that is trying to destroy free speech deserves this.l
ux3l on
Idiot could have easily put back a few (or hundred) millions and keep investing the rest. Idk what financial advice that was, but I doubt they advised to put in all his money.
tacodecaca on
What a greedy little fuck – love to see it hahahaha
24 Comments
greed, self owned.
Cult think is bad business.
If you bet the farm, sometimes you lose the farm.
It’s crazy you get to $100 mil and don’t just call it a day and go experience all life has to offer.
I also immediately assumed this was a story about unrestrained greed, but there does seem to potentially be some shenanigans from RBC, the bank in question. I think the outcome of this case might end up surprising some people.
> However, the complaint noted that RBC advisers didn’t understand or encourage DeVocht’s desire to “essentially retire” by offloading Tesla options to invest in secure instruments for passive income.
> In contrast, the advisers recommended that he establish a company and roll his securities into it. They asked him to execute trades within the newly formed company and hold as much Tesla stock as possible. This strategy would have supposedly helped DeVocht avoid high taxes by convincing the Canadian tax authorities that the legal entity is an investment holding company and isn’t engaged in active trading. Furthermore, the lawsuit claims DeVocht was also advised to donate to the RBC Charitable Gift Fund for charitable tax credits, giving over $8 million in late 2020 and $17 million a year later.
Read the Article
Highly regarded trader👍
Literally no chance he would ever have listened to anyone else anyway.
A day trader who went from tens of thousands to hundreds of millions is never going to think it can end. I can picture him pointing at a financial advisers lowly 911 Carrera and thought to himself “is that it? Have fun staying poor.”
Oh this isn’t an article about Elon Musk.
Does Canada have the same concept of fiduciary responsibility as in the US? And if so, were his advisors at the bank legally bound to act as fiduciaries? This seems pretty cut and dried. Either you have a legal obligation to not let this happen or you don’t.
I read the article and it doesn’t once use the word “fiduciary” which is the crux of the whole matter.
And it just never occurred to him to liquidate even a little of that? idiot
Thats more money than I’ll ever handle in my entire life. I cannot say that I exactly feel sorry for someone with that much to lose.
Dude must have missed all of those “Your capital is at risk” warnings.
If he doesn’t lose his mind, he will make it all back.
Seems odd to me to expect a bank or FI to do a dummies guide to financial responsibility for someone with more than a quarter-billion $ in assets, grown from 20k.
Maybe they’ve been scummy too, but if they argue ‘he had $300million, we assuming he wasn’t a total idiot’ it could be fairly compelling.
Meanwhile, as other have said: if you’ve turned 20k into 20M, surely you realise 10million of that and stash it in index funds or something else safe? Definitely if you’ve turned 20k into 100m, then you have to realise half of that to build your fallback position. 50m, sensibly and safely Invested, is a luxury lifestyle for the rest of your life, even if you proceed to burn the rest.
I love the smell of greedy fucks falling in the mornings.
I’m the opposite. I never got the account that high but I got it high enough where I sold some profits to buy multiple houses in Vancouver and still have enough tesla stock to ride.
Love Elon. The man made me generational wealth. Love the guy.
So the plaintiff states that he started with about $70,000, amassed $26million CAD by trading Tesla shares/options, and then went to RBC with his $26million looking to “essentially retire”.
Based on his statement that he told his adviser he was looking to retire in the near term, the adviser should have told him to sell most of his Tesla portfolio and invest the funds in relatively safe options like GICs, government bonds, insurance companies, etc.
Instead, he somehow ended up with a brokerage line of credit and invested millions more into Tesla stock. Either he’s lying about what he told his adviser his investment goals were (near term retirement) or his adviser saw an opportunity to meet their sales goals and get a bonus by advising this guy to make investments that weren’t in his best interest.
Well how was the bank supposed to know Musk would make that weird face at a Trump rally?
It is examples like this that really showcase how wealthy people will act when they make mistakes. They will look for anyone to blame and become litigious at the first opportunity.
When I was working as a financial planner, the most dangerous clients were ones like these. Excessive risk takers who will clearly seek out a scapegoat as soon as they fuck themselves over.
I have no love for banks and some shady financial “advisors” read: salespeople but people like this really take the prize for stupidity.
Anyone who invests in a company that is trying to destroy free speech deserves this.l
Idiot could have easily put back a few (or hundred) millions and keep investing the rest. Idk what financial advice that was, but I doubt they advised to put in all his money.
What a greedy little fuck – love to see it hahahaha
Something about playing stupid games.