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helping my grandmother make her money last

6,106 Views | 57 Replies | Last: 7 yr ago by JSKolache
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The Wonderer
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Online savings accounts pay 1.05%. It's the best you'll find for that type of account.
JustPanda
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DadAG10
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Has your grandmother asked for your help/advice?
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Betoisafurry
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Isn't zone club one of the Nichols club? Stay away from him if so
MemphisAg1
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Be very skeptical of "experts" that promise to invest grandma's money in instruments that provide high/good returns and no risk. That critter doesn't exist.

An elderly person that isn't rich doesn't have the benefit of time to wait out a dip in investment value, so I would lean toward the low risk side if it was my grandma.
Pasquale Liucci
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Charlie Kelley said:

Isn't zone club one of the Nichols club? Stay away from him if so


Literally cannot repeat this too many times
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MemphisAg1
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third coast.. said:

absolutely i want low risk and ease of removal. Maybe stack some of it in CD's with different maturation dates? This money is for emergencies now then to be split between her kids upon passing. I think her and I will go somewhere when i get home to discuss the money that she has in the market as well, as I think having money in individual stocks at her age is also not the best strategy either. My grandfather watched all that stuff and i believe did pretty well in the market, but I have no idea how much money he had tied up in the market.
Agree with your comments.

If you go the CD route, there's at least a couple options. Some of the online banks can offer the highest rates, but it comes down to your/her comfort level with accessing money that's tied up in a bank you can't visit in person. Another option is credit unions in the local area. They can offer better rates than banks and are usually federally insured just like banks. Membership criteria varies, but there's usually some that have very broad membership eligibility.

US government bonds are another option, but can be more complicated and depending on the product, exposed to interest rate risk.

If you've got somebody you trust who knows the topic well, it could be worthwhile to discuss options with them also. Just be sure to trust your instincts.
SquareOne07
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tx-ags14 said:

Charlie Kelley said:

Isn't zone club one of the Nichols club? Stay away from him if so


Literally cannot repeat this too many times


What he heck is Nichols Club?
Long Live Sully
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SquareOne07 said:

tx-ags14 said:

Charlie Kelley said:

Isn't zone club one of the Nichols club? Stay away from him if so


Literally cannot repeat this too many times


What he heck is Nichols Club?
C'mon man... Don't you know? How sophisticated are you anyway?

It is an investment club offering passive income streams from gold backed derivatives and credit default swaps wrapped in tax free ultra liquid whole life variable annuities. Completely tax free, negative commissions and has 200% liquidity.


I have no idea either.
Long Live Sully
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Thanks.. You have received the best advice here already I think. Maintaining the principle is what matters so I would stick with laddered CDs or similar.
mhayden
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third coast.. said:

They also have large amounts of hunting land and will invite people to go hunt there but then disappear the day before people have planned on showing up for months.

At this point I honestly think those people that were invited are lucky this didn't pan out. Judging by nicholls and co.'s posts, that had all the makings of a "The Most Dangerous Game" scenario.
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nactownag
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First question: is it before or after tax money?

Assuming after taxes then I think a CD ladder is a decent option if you can't stand any market risk.

I'm not sure I'd want to have much in bonds unless very short term.

Personally I think having some equity isn't a bad thing (maybe 30% of the portfolio) to give you some growth opportunity but minimal risk.
JustPanda
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?
JustPanda
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JustPanda
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Diggity
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Quote:

Vile crowd

ATXAdvisor
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ZoneClub said:

Ultra short duration bonds where you hold the paper. That is what I was proposing Nac. 15-30-45-90 day maturities. Rolling cash out every 15 days, but keeping tax free compounding on the re-investment at the same time maintaining tax deferred compounding on all accrued interest. The CRPC is exactly what teaches you about handling retirement scenarios like this, and I have that designation.

Vile crowd.


Maybe if you spoke in plain terms about what kind of oil you are peddling, folks might be a bit more friendly.

The only thing that comes close to matching the description of what you have posted are muni reset bonds, which are very long maturity but reset their interest rate on shorter intervals. The problem is that you leave out details, such as the fact that the prices of those bonds fell 50% during the credit crisis.

Definitely not appropriate for grandma on a fixed income for her emergency fund.

OP - check out CD and savings accounts rates on nerdwallet.com. You should be able double or triple her current yield and keep it FDIC insured.
JustPanda
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ATXAdvisor
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ZoneClub said:

No, the are individual cusips. You just roll the paper. Its very easy, but can be time consuming if you don't have an efficient way to execute it: buy the ultra short end of the curve (15-30-45-90 days). You're buying AAA, AA, and A rated muni's. PSF back Texas ISD bonds, double barrel, GO Unlimited Tax, some insured, some un-insured, MOST are pre-refunded, so they are paid off, with the proceeds held in escrow.

EG- Bought Denton ISD 12/1/2016 at 2.1 adjusted (you can do the math on tax equivalent). Bought PRF 2/1/2017 CA AA+ (PRF so AA is a little moot), at 3.3% adjusted. Bought PRF 1/1/2017 OH AAA at 1.97 adjusted. All fixed rate.

You think those are going to lose 50% over the next 45-75 days?

Sorry for bringing up what we have used to provide a great return with almost no downside capture.




What "paper" are you referring to? Munis are almost universally issued as book entry bonds. Why would any sell an easily traded book entry security at enough of a discount to allow the buyer above market rates and a broker to make a commission? Does not compute.
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Diggity
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Whenever Nichols and his ilk get called out on their trolling, they just throw out a bunch of techno-jargon to confuse people. So fun to watch them flail.
JustPanda
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Diggity
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Did I mention that his next move is always to take things "offline"
ATXAdvisor
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ZoneClub said:

Why isn't the question. It's going on right under your nose. PM me if you'd like to see transaction reports. I'm not posting those online. You are dead set in your belief, and that is the best thing about investing. If we sat down over a beer, after 10 minutes we'd probably be seeing eye to eye. I brought it up as an alternative to CDs. I brought it up to show a part of the market that is being throw out for no reason with little to no interest rate, credit, or market risk.

Diggity must have a real vendetta against those people. I was trying to help. I'll go back to my day job of retirement planning.


Muni trades are public info. Post some CUSIPs of some recent trades you've done at prices below market. I'll gladly confirm with screenshots from a 3rd party.
JustPanda
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JustPanda
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Long Live Sully
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Diggity said:

Did I mention that his next move is always to take things "offline"
So when he PM's you please post them yourself.
ATXAdvisor
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ZoneClub sent me 4 CUSIPs and prices he claims to have gotten. I was able to find 3 trades matching those CUSIPs and prices and posted screen shots from EMMA. That doesn't prove that these were his trades, but he did provide me what I asked for. The trades listed look to me like some sort of crossing trade at the same broker, with the seller taking deep discounts. I'd be a lot more comfortable if ZoneClub would provide some additional details as to how he or his company manage to find such generous sellers. With that, here are my promised screen shots.


BTW, I am clearly techno challenged. I thought the photos of the screenshots could be posted if hosted on the web. I put them on Flikr but they don't seem to be working. If someone has a tip, please share.
mhayden
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The best tips about Zone Club I think have already been given. Do you want to take financial advice from someone who has created half a dozen different usernames on a message board because of the reputation for being crazy he's earned on the previous ones?
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