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Old 01-20-2017, 05:10 PM
 
6,216 posts, read 2,874,385 times
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Quote:
Originally Posted by don1945 View Post
I've converted everything to cash and have it in various safety deposit boxes. Might not give me any growth, but it sure is safe. I would rather have access to cash than to make (or lose) a little profit on it. Especially in these upside down times. Should I die, my sons will also have no problem getting my inheritance.

But that is just me.
Seriously the best advice under this current circumstance.

I recall probate and all the monies gone before descendants could see a penny. Four years later and the roth is still locked up due to "term" lingo.

Uncle Sam doesn't need to inherit.
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Old 01-20-2017, 05:27 PM
 
Location: The sleepy part of New York City
1,959 posts, read 1,211,032 times
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Quote:
Originally Posted by Luvvarkansas View Post
Where would you guys recommend putting a fairly large sum of money where it will draw interest and still be fairly safe? Someone I know said they put theirs into a Horace Mann fund of some type and it draws....oh, I think they said 3 or 4%.
We're going through the same thing.. where do we put some of our money so it's safe and tax deferred but we wanted the option of being able to use it if necessary.

He recommended Vanguard Wellesley fund. They also give you blank checks in case you need to use some of that money.
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Old 01-20-2017, 06:11 PM
 
Location: -"`-._,-'"`-._, ☀ Sunny Florida ☀ ,-"`-._,-'"`-.
1,352 posts, read 732,758 times
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Quote:
Originally Posted by xenxes View Post
Lowest risk are bonds and CDs, but obviously rates are low.

Another option might be peer to peer lending, like lendingclub.com, A-grade/risk are typically 5-7% but minimum 36 mos term.

Another option might be dividend stocks, these are usually low volatility and consistent dividend returns, NYSE:ECC might be one example.

Another option might be mutual funds, but these are long term looking, healthcare/biotech still have good fundamentals such as VGHCX or FBIOX.

Do your own research, diversify (don't put all your eggs in one basket), and as others have said, timing is key... “Be Fearful When Others Are Greedy and Greedy When Others Are Fearful” - Warren Buffet.
OMG, this is just bad suggestion followed by another bad suggestion. ECC, really? Small market cap that has barely traded a year, not a strong dividend history. Also off it's high of over $21/share to $17/share. VGHCX has lost 9% over past year. FBIOX has lost about 25% of it's value. Hardly safe, risk free havens.

There are some dividend stocks that may be considered which bring a long and strong dividend history, but running in the 4.5% range (T, VZ, F) but these bring risk of investment loss, especially if the markets turns even a bit sour.

Honestly, there is no such thing as a low risk / high return option at this time. 2% (and probably less) is about the best one can do.
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Old 01-20-2017, 06:22 PM
 
Location: Central Massachusetts
4,800 posts, read 4,851,516 times
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Quote:
Originally Posted by DaveinMtAiry View Post
That is interesting, had no idea these interest rates existed. Probably won't help the opening poster, this is park and forget it money and I'm not sure he/she will be able to meet the direct deposit or debit card requirements.

So for both the OP and Golfingduo if the timeline is more than a couple of years my suggestion is a fund many here are big fans of, Vanguard Wellesley (VWINX). It's a mix of mostly bonds with stocks as well. Incredible track record, especially in down markets, with extremely low fees for a managed fund. https://personal.vanguard.com/us/fun...FundIntExt=INT

The returns probably won't match the 10 year average of 6.6%, as noted it's not a great bond climate. But any form of cash, including CDs that are mostly paying under 2%, just won't offer viable returns IMO.
Thank you Dave. I will keep that fund in mind. It will be a couple of years from now when I sell the house. The key for me is no loss of principle or at least a minimal loss of principal. Time horizon is going to be fairly long I hope if not even as a legacy fund for our daughter.
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Old 01-20-2017, 09:27 PM
 
4,776 posts, read 6,617,390 times
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I looked at the Vanguard Wellesley fund and if I understand correctly, they invest in Philip Morris. Not sure I could do that.
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Old 01-20-2017, 10:30 PM
 
Location: Haiku
4,122 posts, read 2,584,370 times
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Quote:
Originally Posted by Luvvarkansas View Post
I looked at the Vanguard Wellesley fund and if I understand correctly, they invest in Philip Morris. Not sure I could do that.
Uh oh, investing with a conscience.

I admire your ethics but it is hard to do anything today without touching something questionable. Using your credit card? Those CC companies are relentlessly trying to rope in people to use their cards and run up big bills that then get them into debt they cannot pay. Drive a car? Contribute to CO2 and global warming. Use an iPhone? Exploited labor in sweat shops in China. Wear clothes? Most clothes are made in places where labor is cheap and exploited. The list goes on....
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Old 01-20-2017, 11:32 PM
 
Location: Los Angeles
3,545 posts, read 2,237,412 times
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Quote:
Originally Posted by Luvvarkansas View Post
I looked at the Vanguard Wellesley fund and if I understand correctly, they invest in Philip Morris. Not sure I could do that.
Yeah, I felt a little iffy about buying a boatload of Altria (Marlboro) at $ 26 in 2011. Now that it's at $ 70 and still paying 5%, I feel a little better.
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Old 01-20-2017, 11:49 PM
 
Location: The sleepy part of New York City
1,959 posts, read 1,211,032 times
Reputation: 4337
Quote:
Originally Posted by Luvvarkansas View Post
I looked at the Vanguard Wellesley fund and if I understand correctly, they invest in Philip Morris. Not sure I could do that.
Do you like Mac n Cheese? They own Kraft too or maybe it's the other way around but whatever, they're in bed together.

Where is this money coming from? That makes a difference too. If it's coming from the sale of a house you may have capital gains tax to pay.
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Old 01-21-2017, 01:33 AM
 
Location: In a rural place where people can't bother me ;)
516 posts, read 293,089 times
Reputation: 1009
Put it in a mattress in your bedroom.
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Old 01-21-2017, 03:49 AM
 
Location: Mount Airy, Maryland
10,465 posts, read 5,935,374 times
Reputation: 16165
Quote:
Originally Posted by FeelinLow View Post
I agree with Don. Sort of like Grandpa hiding his cash in the wall, burying it in the back yard, or hiding it under his mattress after recovering from the Great Depression. There's logic in them thar hills.
We nw have 3-4 people backing the mattress idea and frankly I am stunned that there is so much ingnorance on this boad if the posts are legit.

There is no logic what so ever in taking your money and putting it in physical cash and stashing it where it earns nothing. If nothing else Don should have put it in an account at that bank and at least earned close to 1% and is FDIC insured. There is a reason everyone uses grandpa putting his money in a matress as the extreme example of exactly what not to do.

Last edited by DaveinMtAiry; 01-21-2017 at 03:59 AM..
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