FReeper Advice Needed, Dealing with Banks

Self | 4/09/08 | Self

[Little Bill]

Since I have retired I have discovered that I have a fair amount of money. I also have a fair amount of assets in property but that is outside of the issue I need advice about.

I am dealing with a small bank and I would like to crank up the interest rate on the IRA's, now and near future say 6/1/08. What arguement am I going to use to twist the Board of Directors collective arms to get an acceptable return.

[Little Bill]

I am already one of the largest depositors out side of the IRA's, what do I do?

[stuartcr]

Ask a professional financial advisor.

[Little Bill]

That is for my other money, I have an appointment after June 1st with those people. I have directed my own investments all of my life and done quite well. I am beyond the market.

[kingu]

Go in and talk to them would be my advice - tell them you’re not impressed with present rate of return, and desire more; if they’re not willing to help you, there are likely other financial institutions that are.

The higher the rate of return, the greater the risk, generally, so you’ll want to pay close attention to that and I echo the other responder - talk to a professional financial advisor.

[DieHard the Hunter]

> I am dealing with a small bank and I would like to crank up the interest rate on the IRA’s, now and near future say 6/1/08. What arguement am I going to use to twist the Board of Directors collective arms to get an acceptable return.

How safe is your bank? Your rate of return will be a direct reflection of the safety of your investment. You know that.

What is your risk appetite? A higher rate automatically means you are at greater risk of loss. You know that, too.

If the Board isn’t going to raise the rates without you twisting their arm, they will have their reasons that will probably be related to safety/risk per above. Your best bet in that case would be to seek competent professional advice AND FOLLOW IT.

[AmericaUnited]

So how is the weather in Nigeria?

[ozzymandus]

Ask a few other banks what they're willing to pay on your total deposit. And be sure to get supplemental deposit insurance for everything over $100k.

[Always Right]

Giving the situation in banking system today, I would not keep more than $100K at one bank. There are rules which increase that limit, but banks are not the safest place to have money right now. Perhaps look into money markets.

[JZelle]

Send it in to the government, they’re gonna get it one way or the other.

[mojo114]

Just don’t put more than $100,000 in any one financial institution. $100,000 is the maximum the FDIC will reimburse if the financial institution goes under.

[Little Bill]

I did a risk search, they are Conservative, one of the arguements I plan to use is risk.

Back in the early 70's I used professional advice It sucked on a small scale, after that I kept my own council and did quite well, as I pointed out earlier I do plan to seek advice from a pro on other issues, right now I need a cash flow.

[Lijahsbubbe]

Since I have retired I have discovered that I have a fair amount of money.

Are you married? - JUST KIDDING!!!!

[org.whodat]

Go to bank and tell them you want a cashiers check for your money. When they ask why tell them the bank down the street offered you more money on your CD’s. If you have lots of money do the deal in 100,000 units.

[Little Bill]

Don't, I was divorced in 1996 and discovered that I did have more money than I thought, I WAS AMAZED.

[Little Bill]

I can do that, that was another thought.

[B4Ranch]

First things first. Many people tend to make the most foolish errors when shuffling their own money around. You need a tax advisor to review every change suggested to you. Most of these are simply a phone call asking him/her the question, “Is there any tax consequences by doing this?”

You should also hire a financial advisor AFTER you do some research on your own to learn the different options that are available to you.

Banks are not known as the place to keep large quantities of money simply because their interest rates are almost always below inflation rates.

Under the current bouncing economy I wouldn’t invest in anything for a term of longer than one year.

[HangThemHigh]

Threaten to withdraw the money and put into mutual funds. And then do it - if you won’t need the money for a few years. The stock market always does way better than CD’s in the long run.

[elkfersupper]

Navel-gaze a little and ask yourself why you have IRA money in a bank.

[Little Bill]

I have a CPA on call, as I mentioned earlier, I am seeing a financial adviser on 6/1 +/-, to discuss different options, she is coming with me.

I agree on the one year thing, but I have to generate a cash flow to supplement my Socialist Security when I start collecting. I was going to collect at 62 but my CPA said, "You Can't Afford It, the taxes will kill you wait."

I have two types of money, stuff for cash flow and cash for investing in cash instruments, short and long term. I got out of the market last Feb except for some utility stocks.