If you managed to either sell enough stock without the guarantee, or you somehow manage to get people to lend your LLC/corporation enough money at 4.5% interest, you could probably get away with paying yourself $250k per year if you could credibly argue to a court of law that that's in the best interests of shareholders (and it's not designed to defraud bondholders by taking the fund into bankruptcy). You would have to legally separate the closed-end fund from the management company, and it would be the management company that extracted a management fee from the fund and paid you your salary. Sounds good, right? Keep in mind that the average actively managed mutual fund has a management fee of less than 1%. Even if you manage to justify a 2%/20% arrangement like a hedge fund, you'd need at least $10 million in equity (and consistently superior performance to the market) to justify that, and that's ignoring the other fees that go along with running a fund that size (brokerage, travel, research, administration). All in all, considering you probably can't beat the market, you'd probably need about $50 million in fund capital to make it work.
Your other questions are moot. You can't make the guarantee, so you aren't on the hook for the return. If the company goes into default, the shareholders and the 4.5% bondholders are SOL. That said, they'd probably sue you personally if you were anything but completely aboveboard in managing the company, and they'd probably win.
TV commercials cost a lot of money and why would investors invest with you to only make 4.5% when they could invest in those same Blue Chip stocks directly and make unlimited profits? you would need a securities/stockbroker license + lotsof SEC leagl paperwork and no, you would not be able to pay yourself anything until you showed a profit, which may be never
I feel like I'm one step behind Miserere with the good answers. That said, you should read up on the ponzi scheme, for entertainment/historic knowledge.
http://en.wikipedia.org/wiki/Ponzi_schem...
YOu need to know it isn't that easy
So if I were to make an investment company which would invest in stocks and commercial property. If I were to set up the company os there a max number of shares I can issue (it will be a private company not listed on asx). Could I place a commercial on television guarenteeing a 4.5% return on their investment per year if they invested with me for 5 years. I would invest in blue chip stocks that pay more than a 5% dividend. For the property it would be commercial property with blue chip tenants offering a 7.50%+ return per year. Would i be able to pay myself as the chairman $250,000 per year and then also pay dividends. If people invested their money with me and the company went broke would I still have to pay them their money if the didn't go for the guarenteed 4.5% return for 5 years. What other things do I need to know?
