How can I get max returns

[saniyer]

I have about a 1 million dollars invested in various asset class. Mutual fund, stocks, CDs etc. which gave me an average of 4-5% returns last year.
I want to know is there a way I can go to a bank or a brokerage firm with this 1 Million dollars and negotiate a price on a CD and ask for a 10% return if I agree to keep this money in their CD for at least 1 year. Is there a way I can get a guaranteed 10% return on my 1 Million$ in a safe way (not the stocks/mutual fund approach)

Please advice.

Thanks,
-Santosh

[HalMd]

The biggest jumbo CD I've seen only gets 6.25%, and that is a minimum $100,000 for 20 year and it is callable. So, I would think not.

[Broken Arrow]

Wow. Nothing I know of that is guaranteed. However, if I had that much to work with, I would seek out a competent (fee-based) financial advisor for guidance. I would study up on Warren Buffet if you haven't already done so. Finally, there are a variety of tax shelters out there that can help. IRA is an example for people with *cough* much lower assets to work with, such as myself. Again, studying Warren Buffet might help. He was famously noted for having paid lower in taxes than his secretary.

Good luck. Wish I had your dilemma.

[sweeps]

Originally Posted by saniyer

I want to know is there a way I can go to a bank or a brokerage firm with this 1 Million dollars and negotiate a price on a CD and ask for a 10% return if I agree to keep this money in their CD for at least 1 year.

That's not going to happen. A bank or broker needs to be able to earn a higher return on your money than it's paying you. No reasonable company is going to count on earning more than 10%. And even if it could count on it, it could offer cheaper 7% CDs and get all the inflows it needs.

Is this million dollars your entire nest egg, or is it just a drop in the bucket for you. Assuming it's the prior, you really shouldn't have all your money in CDs -- they just can't produce the long-term growth.

If you're completely risk-averse and must be in CDs, considering CD laddering. That helps strike a balance between risk, return and liquidity.

[Broken Arrow]

Uh oh. Sweeps hath uttered "nay", so it can't be good.

To be sure, it IS possible to get 10% return, but of course, it would not be guaranteed. Risk and gain are almost always directly proportional. I mean, if there is a legitimate way to guarantee a high return that's guaranteed risk-free, we'd all be doing it, wouldn't we?

[yellow heel]

What is your current asset allocation? and when willl you need this money?

[aleish]

No. $1 million is nothing to a bank.

You can play it safer in a stable value mutual fund, where you'll do better than a CD, but you'll never get 10%.

[Duchesse]

10% is not being offered anywhere in this universe without the stock market. You should seek competent professional advice. Read and stay informed. Good Luck

[disneysteve]

Originally Posted by saniyer

I have about a 1 million dollars invested in various asset class. Mutual fund, stocks, CDs etc. which gave me an average of 4-5% returns last year.

I agree that you won't find a guaranteed 10%, though some lower rated corporate bonds might pay better than CDs (though they aren't without risk).

I'm more concerned with the fact that you have a $1 million portfolio and only earned 4-5% last year. That's lousy. My portfolio is only about 1/3 that size, but my best funds are up over 20%. My lowest yielding investment earned (money market account) about 5%.

Depending on your ultimate goal for that money, I'd suggest getting a little more aggressive.

[aleish]

With $1M, you'll be able to get a better rate on a CD, but no where near 10%. Also, only $100k of that would be FDIC insured anyways, so it wouldn't be guaranteed if the bank went under. Also, you might want to look into an index fund like the S&P 500. They've averaged about 10~11% per year for any 10 year rolling period since forever.

[scfr]

With the amount of investable assets that you have, you could go to a mutual fund company like Vanguard or T.Rowe Price (and I'm sure there are probably others that I don't know of) and get a comprehensive financial plan (with recommendations about where to put your assets to best meet your specific goals) for FREE. If you go with Vanguard, the plan will be prepared and discussed with you by a CFP (certified financial planner).