300k in savings account

[james428]

i am coming into about 300k soon which was left to me from a relative. As of now i am thinking of putting it into high yeild savings accounts (hsbc/wamu around 3.5% each). Can anybody suggest any other SAFE places for it? any bonds or cd's paying more then that? I am 60 y/o, i wouldnt mind locking some of it up (200k) for some time if the return is better. I am not looking to going into the stock market or investing in real estate, etc, just something simple to get a simple garunteed return. Thanks so much

edit- i am aware fdic only insures up to 100k, i will probably open 3 different acounts and seperate it

[aida2003]

If you look at CD's, you might get a better rate. If I were you I'd ladder them, too. This blog is great for searching for best rates, IMO. Bank Deals - Best Rates and Deals

As a side note, FDIC insurance covers principal + interest, so you'd need more than 3 different banks. In case you have a spouse, FDIC insurance would cover you and your spouse up to $200K at the same bank.

[gamecock43]

I agree with your thinking. Who knows when this stock market might start earning money again, it could be years and years from now. I would do a CD, bond, money market, whatever will earn the highest intrest rate guarenteed.

[zetta]

Once you make it to age 60, you have a good probability of living to age 80, so I would recommend that you reconsider investing a portion of the money in the stock market to protect against the risk of inflation outstripping your earning power. Playing it too safe has its own risks. Perhaps 100k of the money into a balanced fund (which invests in both stocks and bonds.)

[maat55]

You might consider an variable annuity for your circumstance. If you are in good health.

[jIM_Ohio]

Look at CDs with a 5%+ apr fixed for 3 years+

[Slug]

You could also try some municipal bonds.

[noppenbd]

You could also consider buying TIPS (Treasury Inflation-Protected Securities). They offer a small amount of interest plus an inflation adjustment to the principal. I believe the shortest duration you can buy is 5 years, so you could ladder with them but you would have to do it over a period of years.

[Ima saver]

I have all my cash in c.d.'s paying 4% or better, right now.

[sweeps]

Please, for the love of God, do not open a variable annuity.

[Aleta]

I agree with Sweeps about NO annuities. I'd go with CD's laddered as someone has already mentioned. You didn't mention when you would retire. I'd keep enough in a high-yielding savings or money market account to have as an emergency fund.

As for Washington Mutual, I would look elsewhere. Bankrate has them rated as a 5. Especially any money that you would want to get your hands on if you needed it.

[Broken Arrow]

I would still look into putting perhaps a third of the money into some kind of stock mutual fund.

A down market is, in my opinion, the best time to buy for money you don't need right away.

[YoungBuck]

John Hancock has an annuity that has some nice guarantees if you dont withdrawl for a certaim amount of time. If you're 60 and dont withdrawl for 10 years. They guarantee your principal will double. if you do the math, thats about 7% for 10 years. Maybe you can put a portion of your money in annuity, CD, EF, and bank. How much money do you need monthly to live comfortably?

[noppenbd]

John Hancock has an annuity that has some nice guarantees if you dont withdrawl for a certaim amount of time. If you're 60 and dont withdrawl for 10 years. They guarantee your principal will double. if you do the math, thats about 7% for 10 years. Maybe you can put a portion of your money in annuity, CD, EF, and bank. How much money do you need monthly to live comfortably?

I would love to see the details on a product which guarantees a 7% return.

[Terin]

Open a swiss bank account last i checked they were 12% returns. 50k needed to open though.