Net Worth Is Less Than The Size Of Deposit

[Nobert]

This question keeps bothering me for a while.

When i opened an account with IB, it asked for my net worth.

I am planing to make a deposit, which is larger, than the number that i choose previously as my net worth.

I could provide a legal proof for the source of such deposit.

Don't want to end up with my account frozen for few months or smthn.

Anything that i should be aware of ?

Thanks up front.

 

[engineering]

If you're talking that much money, I'd break it up between several firms any ways. Don't put all your eggs in one basket.

 

[tomkat22]

As long as the deposit is legit and goes through cleanly I doubt if they care much about your net worth.

 

[ET180]

If you're talking that much money, I'd break it up between several firms any ways. Don't put all your eggs in one basket.

More fun at tax time and less buying power. I'm not worried about IB. They'll be one of the last brokers to fail.

 

[VicBee]

This question keeps bothering me for a while.

When i opened an account with IB, it asked for my net worth.

I am planing to make a deposit, which is larger, than the number that i choose previously as my net worth.

I could provide a legal proof for the source of such deposit.

Don't want to end up with my account frozen for few months or smthn.

Anything that i should be awere of ?

Thanks up front.

I would discuss it with them before making the deposit...

 

[Nobert]

If you're talking that much money, I'd break it up between several firms any ways. Don't put all your eggs in one basket.

It's a lot for me, but nothing big.

One of the plans is to 33% between IB and 2 largest Scandinavian banks.

Yet, everything into one basket of IB, is a plan A for now.

 

[tony.m]

I am planing to make a deposit, which is larger, than the number that i choose previously as my net worth.

It should be fine as your deposit of $5500 is only $500 over your net worth.

 

[Statistical Trader]

that i choose previously as my net worth.

(1) I update my net worth with IB from time to time. If your net worth has increased, that should be easy to update and the problem goes away. I just update it when they ask, but I'm sure you could reach out to IB to update your net worth.

(2) If your net worth is (still) lower than the deposit amount, then presumably you're investing on someone else's behalf or you are investing funds you've obtained through a loan? In that case, I would recommend talking to someone knowledgeable in Lithuania as a first step because laws can vary considerably from country to country and I'm not sure how many people on ET can speak to the issue from that perspective.

I second VicBee's advice although, personally, I would want to do some background homework first so I know what IB's concerns are likely to be (if any) before contacting them.

Good luck!

 

[ETJ]

Depends on the scale.
Implies liabilities make up at least part of the difference.
Likely will not be noticed, but again depends on scale.
US AML and local compliance issues are the concern.
Nightmare if you ever file arbitration or litigation.
Worst case scenario US regulators - freeze and restrict to closing only. Again depending on scale could limit available products.
Don't think for a minute there isn't unofficial regulatory sharing of information.

 

[d08]

You can update your net worth, better do it properly because if the issues start, it's hard to fix the situation.