100K in Cash - Merrill Advisor Yelling At Me to Invest
- Thread starter rathgar
- Start date
The HalfBreed
Recycles dryer sheets
I agree with the majority of posters. ML can't make money off of you as it stands.
I use CapitolONE 360, but IL taxes interest income @ 5%. I only have 50K there, now, but I also keep 150K I moved into Six individual 6 month Treasury bills. States don't tax interest from Them. I use 26 week (6 month) T-Bills in 25K increments, so they roll over monthly. I can set it up to roll over 4 times max (just started last summer), but I can intervene and stop it if needed.
T-Bills are purchased below value and upon rollover, the interest is deposited back into CapitolONE 360, so the next 25K T-Bill costs about $24,800. I set my TreasuryDirect account to use my online savings, and it took about 10 minutes to set one up online.
Either way, You sound intelligent enough to do it yourself. No one looks after you and your wishes better than you, and your significant other.
I use CapitolONE 360, but IL taxes interest income @ 5%. I only have 50K there, now, but I also keep 150K I moved into Six individual 6 month Treasury bills. States don't tax interest from Them. I use 26 week (6 month) T-Bills in 25K increments, so they roll over monthly. I can set it up to roll over 4 times max (just started last summer), but I can intervene and stop it if needed.
T-Bills are purchased below value and upon rollover, the interest is deposited back into CapitolONE 360, so the next 25K T-Bill costs about $24,800. I set my TreasuryDirect account to use my online savings, and it took about 10 minutes to set one up online.
Either way, You sound intelligent enough to do it yourself. No one looks after you and your wishes better than you, and your significant other.
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Two questions presented
Others have nicely handled the question of whether you stay with a disrespectful advisor.
For the other question, I don't offer advice, but an anecdote. We had an inherited account back in the mid-2000s, and a good percentage had been invested in municipal bonds. As interest rates fell, the municipalities would often redeem their 3-5% bonds early, and we were not in a hurry to reinvest. As a result, by 2008, there was a good amount of sugar at the bottom of the box. The amount of cash in the account was the same in mid-2009 as it was in January 2008, while all the invested funds had fallen dramatically.
Cash itself can be a good hedge.
Others have nicely handled the question of whether you stay with a disrespectful advisor.
For the other question, I don't offer advice, but an anecdote. We had an inherited account back in the mid-2000s, and a good percentage had been invested in municipal bonds. As interest rates fell, the municipalities would often redeem their 3-5% bonds early, and we were not in a hurry to reinvest. As a result, by 2008, there was a good amount of sugar at the bottom of the box. The amount of cash in the account was the same in mid-2009 as it was in January 2008, while all the invested funds had fallen dramatically.
Cash itself can be a good hedge.
Find a better advisor
About 15 years ago I used a ML advisor - for about 1 month. I am sure ML has some good advisors but that is not my experience.
If you use an advisor they need to have a total view of your financial position and goals and they should not be pressuring you to do something like invest your cash. They should recommend but they should not pressure.
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Good luck.
About 15 years ago I used a ML advisor - for about 1 month. I am sure ML has some good advisors but that is not my experience.
If you use an advisor they need to have a total view of your financial position and goals and they should not be pressuring you to do something like invest your cash. They should recommend but they should not pressure.
[mod edit]
Good luck.
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These advisors are compensated to push products and I’d encourage everyone to read a few books and learn how not to rely on advisors. It’s funny....I’ll bet the pushy ML advisor doesn’t have $100k total but seems to know exactly what others should do with theirs.
