It's pretty easy to make 10%+ on money. I would turn them into good dividend paying stocks as they mature
Really? That is sort of what the man from Putnam told me and as well as the man from Merril Lynch. Putnam lost me just short of 100K and Lynch lost me right at $270K. Lets throw in Pioneer, they lost me $40K. All were "low risk good dividend" stock portfolios. Every person in the industry likes to quote stats from before the depression. "Let it ride" they say. I have been riding 10-20 years, and guess what, my money is still gone.
Regardless, call the bank...
Careful putting cash in a safety deposit box, banks/.gov no likey! It isn't illegal, but they definitely frown upon it, and some banks forbid storing cash in a box.. I think I will just cash them all out and put them in a safety deposit box.
CD's suck....but I guess they are safe. It's pretty easy to make 10%+ on money. I would turn them into good dividend paying stocks as they mature. How old is your mother? Wishing you folks all the best and kudos for helping your mother.....
Wait, what?!Thanks they are all 18m Cds most of them are 3 months in. I am taking a couple of days off in another week I will check with the bank then. If we just loose what the bank paid us that is ok with me. I wouldn't have to do her taxes if it wasn't for her cds. I think I will just cash them all out and put them in a safety deposit box.
Were you into (bad) individual stocks or into something that mirrors the whole market?
If you're riding the S&P 500, there is no point between 10 and 20 years ago that you could have put money in, let it ride, and be down today. Even if you put it all in at the peak before the 2008 crash, you'd still be ahead something like 47% (78% if dividends reinvested).
The 2008 crash was bad, but the market has more than recovered.
You're giving out investment advice, and you "guess" CD's are safe? You don't know? Forgive me if I ask for a detailed prospectus before following your investment advice.
Oh, is that 10% CAGR? And what sort of risk are you assigning to that handful of stocks? The OP's mom is probably around 80 years old and your advice is to throw it all into equities?!
moving on...
Wait, what?!
OK, first, what's the problem with CDs and tax returns? You just fill that in on line 8A (line 2 on the EZ). The bank sends you a statement; there's nothing to think about.
Second, you're moving cash from an interest bearing (albeit small) and insured account to an uninsured box and it won't keep up with inflation; and in the process, forgoing any accrued interest because of early withdrawal penalties?
Tell me how this makes any sense whatsoever.
Here's the dirty little secret: on the whole, mutual funds underperform the market.
As a general rule, it is never a good idea to put all of your eggs in one basket, even if the basket is insured CD's. It may be too late in life for this man's mother to start investing in common stocks, but still putting it all in CD's creates the problem of having to pay a penalty for early withdrawal. A money market fund is a good option for part of her money. Try to find some good advise based on all of her circumstances.
One man's fiscal prudence is another man's butthurt. CD's are not altogether worthless. They are a decent vehicle for saving a small or modest money that is not needed in the short term with a guaranteed return.Man, you almost sound butthurt. CD's are worthless...why tie up your money for 1% or less?
You and I are at a stage in life where it's foolish not to invest heavily in equities (assuming a decent financial savvy, like yours), but this thread isn't about you and me, so please refrain from providing the same retirement planning advice that you would for person in their 30's. The OP's mother is at a stage in life where it would be foolish to invest over 20% in equities because your retirement should not include speculative growth at a very late period in life (e.g. you 80's).If you can't make 10% on stocks a year.....you need to own CD's. I think for now I will take Buffets advice. Good Day.