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Old 01-14-2023, 02:44 PM   #61
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How risk adverse is she? With that amount of cash, and low expenses, a CD ladder may provide her with the security she needs and plenty of income to draw each month from the maturing CDs.
Right now at Vanguard, you can get a brokered bank CD at rates from 4.2% up past 4.7%
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Old 01-14-2023, 05:00 PM   #62
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Take most of the cash in the checking act (leave 1or 2K in) and stuff it in VG CRFMMF which is yielding about 4.26%. She easily switch $ back and forth with her checking act. Since she is not afraid of stocks, take ALL of that stock MF and move the money to VG TSM.

Easy peesy lemon squeesy.
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Old 01-15-2023, 09:10 PM   #63
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Update:

Aunt and family decided to use Merrill Lynch do to existing accounts with Bank of America.

She was able to move $480k into 1-3 yr CDís paying 4.5-4.6%.

Question- would you consolidate all accounts at BofA and Merrill L, or
put remainder of portfolio ($500k) at Fidelity ?
Fidelity seems to have more fixed income options from what we can tell.

Thanks for previous comments and any thoughts going forward.
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Old 01-16-2023, 07:58 AM   #64
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^^^^ The richest woman I ever knew gave me a very useful piece of advice: ďKeep it simple.Ē
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Old 01-16-2023, 09:49 AM   #65
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Morgan Stanley is currently MM - 4%. 3 and 6 months CD - 5%. Yes, during a phone conversation there was no difference in 3 and 6 months. You can choose.
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Old 01-16-2023, 03:18 PM   #66
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Quote:
Originally Posted by Katoslake View Post
Update:

Aunt and family decided to use Merrill Lynch do to existing accounts with Bank of America.

She was able to move $480k into 1-3 yr CDís paying 4.5-4.6%.

Question- would you consolidate all accounts at BofA and Merrill L, or
put remainder of portfolio ($500k) at Fidelity ?
Fidelity seems to have more fixed income options from what we can tell.

Thanks for previous comments and any thoughts going forward.
Thanks for the update. Sounds like you've leaped the main hurdle: Getting aunt to "do" something rather than ignore it. Good for you.
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Old 01-17-2023, 10:13 PM   #67
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Medallion Signature Guarantee is the new thorn in side.

Low cost firms donít seem to require it, but load funds with higher fees do.
Variable Annuity accounts are similar.

To those reading; clean up beneficiaries and co or secondary owners.
Tedious and so unnecessary
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Old 01-17-2023, 11:38 PM   #68
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I'd keep it very simple or she likely won't want to do anything. I'd go with something along the lines of a Morgan Stanley preferred savings account paying 4% for the $750,000 and she can get a debit card and checks so it will be like her current account. Interest compunds daily and she'll make an extra $2,500/month in interest. FDIC insured for $500k per person/account.


Older people seem to just want things simple, safe and familiar so don't confuse them by introducing new investment products they won't understand.
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Old 01-18-2023, 10:20 AM   #69
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My thoughts for the current situation…it is not hard to build a t-bill treasury ladder…buy 6 month treasuries bills for the time being. Advantages is as fed raises rates you will get a better rate…if you buy 3-6 month treasuries you will have access to cash if needed during this cycle…I am doing this for my 80 yr old father…with the gains I am buying SCHD dividend fund…when the fed cycle changes of course bonds are not the place to be in when they begin cutting rates. So now we just wait. Also I Bonds maybe a great option to do 10k a yr. Good luck

Advantages of T-bill over CD's…they trade if you want or need to sell…there is no penalty for early withdrawal other than you sell at market price. Almost all CD's and MM pay are based on short term treasuries but of course they take their cut. Currently 6 month t bill pays 4.82% and will likely be over 5% after the fed mtg 1 Feb. Nothing is guaranteed but a treasury is about as close to guaranteed as you can get.
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Old 01-21-2023, 08:55 PM   #70
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Update-Auntís situation

Through family action she has the following:

$465,000 in 1-3 year CDís paying 4.3-4.65%
$175,000 that will likely be split between MM-3.8% and another CD

Remainder of $750,000 not yet allocated. ($110,000)

Also, upon a file cabinet scavenger hunt, found the following accounts:

BlackRock variable annuity- $43,000
Allianz variable annuity- $70,000
ColumbiaThreadneedle large cap growth- $340,000
Lincoln financial annuity- $92,000

No one was aware of the mutual fund or annuities. Just confirmed they do exist.

Lucky to have looked through file folders.
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Old 01-22-2023, 07:20 AM   #71
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Quote:
Originally Posted by Katoslake View Post
Update-Auntís situation...

Also, upon a file cabinet scavenger hunt, found the following accounts:



BlackRock variable annuity- $43,000

Allianz variable annuity- $70,000

ColumbiaThreadneedle large cap growth- $340,000

Lincoln financial annuity- $92,000



No one was aware of the mutual fund or annuities. Just confirmed they do exist.



Lucky to have looked through file folders.
So, is the $340,000 of ColumbiaThreadneedle large cap growth above the same as the $334,000 in Columbia Large Cap Growth Fund- class A shares in the OP?
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Old 01-22-2023, 07:41 AM   #72
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So, is the $340,000 of ColumbiaThreadneedle large cap growth above the same as the $334,000 in Columbia Large Cap Growth Fund- class A shares in the OP?
Yes, should have clarified. Some amounts in these accounts were older statements so donít reflect true balances.

Also, she actually has $485,000 in CDís currently not $465,000.

Hoping dust and balances will settle a little, but the scariest part of having all that money in non interest earning checking accounts is past.
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Old 01-22-2023, 11:00 AM   #73
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... Hoping dust and balances will settle a little, but the scariest part of having all that money in non interest earning checking accounts is past.
Yes. You've done well for her. No rush now.

Jason Zweig is one of the few writers I find worth reading. I recently ordered a couple of his backlist books. One was "The Little Book of Safe Money." Here is a sentence that I flagged while reading last night: "In financial life, there are no prizes for making the fastest decision -- but there are many rewards for making the best decision."
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Old 01-22-2023, 12:15 PM   #74
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Yes. You've done well for her. No rush now.

Jason Zweig is one of the few writers I find worth reading. I recently ordered a couple of his backlist books. One was "The Little Book of Safe Money." Here is a sentence that I flagged while reading last night: "In financial life, there are no prizes for making the fastest decision -- but there are many rewards for making the best decision."
This is good advice for those of us that tend to be impulsive !

Next goal for Auntie is to get necessary Medallion Signatures to move mutual funds and annuities into her Merrill Lynch account. Then look at tax implications of those holdings, which is way, way above my pay grade.

Thanks to all for the continued advice !
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