Stocks

[Bassin08]

What's the interest rate on the MM account?

I know it’s low and I’m losing to inflation, but it is just being used for the preservation of capital at this time. My question was just put out there to get a feel for the current trust in the market right now. If I move that money out of American Funds money market and into CD’s, I would have to pay the front load to get back in. I’m not sure if I want to go completely conservative yet or not. One day I enjoy the feeling of safety and the next I want to try to earn more. Maybe it is just greed?

[NitroZ7]

I am using TOSXx for my cash. It is yielding 2.06 and only invests in us Treasury obligations. When I am parking cash it has to be safe and liquid. I don’t know the American funds one but if it pays less you can take a look at TOSXx

[Bassin08]

I am using TOSXx for my cash. It is yielding 2.06 and only invests in us Treasury obligations. When I am parking cash it has to be safe and liquid. I don’t know the American funds one but if it pays less you can take a look at TOSXx

Then if I want to go back into American mutual Funds I would have to pay the the front load cost of class A shares again. The way I am doing it, that move is free. I’m not sure if I want to go back into mutual funds or not? My time line at my age may be too short. I am really laboring with this decision. I really don’t think my CFP has my best interest at heart anymore.

[TampaJim]

If you're questioning the CFP, it's time to move down the road and quickly.
At Age 75, your concerns are fair. Not sure I'm in agreement with the strategy.
Personally, I'd ladder CDs to keep up with inflation. One year 2.55% now.
And you could always do 1/2 in CDs and 1/2 in conservative bond funds, etc.

[NitroZ7]

I have some managed accounts where I pay a fee each quarter to my broker. By doing this he can buy institutional shares of funds that do not have any loads. As Jim said above, if you are having doubts then get another opinion. In this day and age with ETF's and low cost mutual funds the fees for an investment should not be an issue.

[CatFan]

You can get 2.75% APY in 12 month CDs now. MM can’t compete.

[Bassin08]

BDLAX and PONCX. Thoughts on these two bond funds.

[bluejay10]

I would personally stay away from those. No way am I going to pay an expense ratio over 1% with all of the options out there

[NitroZ7]

BDLAX and PONCX. Thoughts on these two bond funds.

If you are looking for something with investment grade bonds you cal look at the Ishares ETF target date maturity etf or investing bullet shares. You can pick you maturity dates, ladder different ones and the expense is .10 %. I believe invesco also offers junk bond target date maturities and municipal bond ones. You can go to either companies website and put in you purchase price and get an estimated net acquisition yield. You can also hold these to maturity like a regular bond and rollover on maturity. This might be a product you may want to discuss with your financial advisor. Mine was not aware of it but once we looked at it we decided it was a really good fit for one of the accounts.

[Bassin08]

If you are looking for something with investment grade bonds you cal look at the Ishares ETF target date maturity etf or investing bullet shares. You can pick you maturity dates, ladder different ones and the expense is .10 %. I believe invesco also offers junk bond target date maturities and municipal bond ones. You can go to either companies website and put in you purchase price and get an estimated net acquisition yield. You can also hold these to maturity like a regular bond and rollover on maturity. This might be a product you may want to discuss with your financial advisor. Mine was not aware of it but once we looked at it we decided it was a really good fit for one of the accounts.

My problem is that the CFP that I have told me that without any C shares we would not be able to do business. I am very intertwined with him in other investments. I don’t know how to go about a company change at this point due to my age. I know that a low cost advisor is not going to be interested in very safe investments (CD’s). I feel stuck.

[adrenalnjunky]

My problem is that the CFP that I have told me that without any C shares we would not be able to do business. I am very intertwined with him in other investments. I don’t know how to go about a company change at this point due to my age. I know that a low cost advisor is not going to be interested in very safe investments (CD’s). I feel stuck.

Is his C Share requirement just to compensate the way he wants to get paid? Am I understanding it correctly that you're locked into C shares and the annual commission payment, vs a front or back end load payment?

[Bassin08]

Is his C Share requirement just to compensate the way he wants to get paid? Am I understanding it correctly that you're locked into C shares and the annual commission payment, vs a front or back end load payment?

Yes, he gets a trailing 1% for his efforts. I don’t have any fees to sell them, but the high expense ratio is higher than my gains. With this years bonds doing so poorly, I would rather have that money in CD’s. Add to that the BDLX has a high risk potential, with a lot of the bonds rated below BB.

[TampaJim]

My problem is that the CFP that I have told me that without any C shares we would not be able to do business. I am very intertwined with him in other investments. I don’t know how to go about a company change at this point due to my age. I know that a low cost advisor is not going to be interested in very safe investments (CD’s). I feel stuck.

Wow!!! Bad, bad, bad. I'd pack up and head to Schwab quickly.
Even with the full advisory service, you're only looking at 0.28%.
You get terrific investment options, a CFP and unlimited help.