Need advise

Discussion in 'Financial Planning' started by Miller 49er, Dec 15, 2005.

  1. Miller 49er

    Miller 49er Guest

    My name is Shirl and my brother just sold his house.

    He needs to talk to someone about trying to invest his money and how to
    keep it safe. (the pros and cons of keeping it in a bank)
    Any ideas or sites you can direct us too.
    He needs to invest also

    Thanks in advance.

    Miller 49er, Dec 15, 2005
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  2. Miller 49er

    Sgt.Sausage Guest

    There is no "safe" -- there is only: "There is risk, but
    am I comfortable with the expected return for the
    risk(s) assumed?)

    "Safe" is relative to what you can handle, risk-wise. Everything
    has risk, including not investing at all. Are you AOK with the
    risk or not? Not: Is it safe?
    Sgt.Sausage, Dec 15, 2005
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  3. Miller 49er

    Guest Guest

    Hi Shirl.
    To start with, a bank usually has FDIC insurance to cover every
    account up to $100,000 dollars, so if your brother has more than
    that, he can spread it around to enough banks to get it all covered.
    It is probably critical that your brother get a beginning education
    in investing. Otherwise he is like a lamb among predators, with lots
    of people ready to give advice to get his money.
    *He should not invest anything* until he understands the fees and
    costs (some of which will be hidden as much as they can).
    Feel free to ask here about any given investment. First we must
    know more about your brother. What are his plans for this money,
    and his plans for life. What other money and assets does he have?
    The *long-term* risk of keeping it in the bank is that it may never
    grow enough.
    Say more about your brother. Does he own a house? Mortgage?
    Joe Weinstein
    Guest, Dec 15, 2005
  4. Miller 49er

    Tess Millay Guest

    Hi Shirl,

    For what purpose is he investing? The next house, or
    long-term, for his retirement? Something else? Does he know
    anything about stocks, mutual funds, bonds, the effects of
    inflation eroding the values of one's savings, what his
    retirement needs are?

    If he's a complete beginner without too much motivation to
    teach himself, then he should hire a financial planner. I'm
    sure others will offer advice on how to find one. If
    possible, in advance of his first meeting with any financial
    professional, he should get some idea of what sort of
    portfolio allocation is reasonable for his risk tolerance
    and timeline. He can experiment with some of the free online
    tools I listed at . These
    should give him an idea of what to expect from the planner.
    If he understands in advance some of this material, he can
    save some time and money with the financial professional. He
    can also google for sites that introduce a person to

    Disclaimer: I am a DIY-er of 20+years.
    Tess Millay, Dec 15, 2005
  5. Miller 49er

    zxcvbob Guest

    He can put the money in short-term (3 month or 6 month, etc.) CD's at
    the bank for a safe place while he's figuring out a more permanent home
    for it and earn a lot better interest than just a savings account.

    Series I savings bonds are very safe and have an attractive total yield
    right now, but the money would be locked up for a year that way, and
    there is a limit to how many I bonds you can buy in a calendar year --
    $30000, I think. The interest is tax differed for up to 30 years, and
    the interest is exempt from state and local taxes. But the interest
    rate is variable and could drop to about 1% (at which point he could
    cash the bonds and move the money elsewhere)

    Be careful; don't make any hasty decisions. There are lots of financial
    advisors out there that would love to steal some of his money if they
    sense that he doesn't know what he's doing.

    Best regards,
    zxcvbob, Dec 15, 2005
  6. Miller 49er

    $cott Guest

    Hi Shirl,

    As some of the other posters have already indicated, your brother needs
    to spend sometime educating himself on the various investment options
    available today and researching an adequete service provider to assist
    in facilitating his investment goals.

    I advise people in your brother's situation to look for a short term
    investment that allows them to preserve the original principle whilst
    offering them a modicum of appreciation until he has developed an
    understanding on how he wants to "plot and navigate" his long term
    financial objectives. Before your brother decides to "let it ride", he
    got to spend sometime to understand the game and all the rules.

    One possible short term investment vehicle worthy of considering is a
    high yield savings/checking account. One of my wholesale lenders
    offers a no fee/no minimum high yield account that is currently
    yielding 4%. This company uses this investment product to attract
    money for their mortgage lending business. You can use your existing
    checking/savings account and the investment is secured by FDIC. For
    further information, you can search for Emigrant American Dream Savings
    Account or visit

    There is a bounty of free information on the internet that can assist
    in the education process, and finance and family planning professionals
    of all sorts that often host seminars meant to educate the general
    public on the various options available today.

    When your brother compiles his short list of investment ideas to
    research, may I suggest that he add "private lending" to the mix.

    Good Luck,

    Scott Miller
    Commercial And Real Estate Lender/Broker

    "I've got money, want some?"
    $cott, Dec 16, 2005
  7. Miller 49er

    Miller 49er Guest

    The money is in the bank...but we need to know about financial funds,
    accounts and need to talk to a financial advisor.
    What's a money market account?
    Miller 49er, Dec 17, 2005
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