BoA / ML investments

[_ptatohed]

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@Aim_High wrote:

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@C6 wrote:

I'd suggest Alliant 2.5% flat and the FNBO Business Evergreen for 3% on the first 10,000 spend. I'd never park $100,000+ in a BOA checking or savings account to get the higher rate. Earning .04% on savings is laughable from a "Too Big To Fail Bank". BOA is not well capitalized and I have no faith in the FDIC. 

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I don't know of anyone who would park $100K in a "big bank" checking or savings account @C6.  The deposit requirements for Bank of America Preferred Rewards are total deposits including not only those low-yielding bank deposit accounts but also investments with Merrill Lynch.  Merrill offers Merrill Edge Self-Directed, Merrill Guided Investing, or Merrill Lynch Wealth Managment options.  Merrill Edge Self-Directed offers Unlimited $0 online stock, ETF and option trades with no trade or balance minimums.  Many of our forum members who pursuded Preferred Rewards status moved invested assets including IRAs over while maintaining minimal banking deposits.  

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A_H, do you know if there is any 100% risk-free investment opportunities with BoA / ML while maintaining the $100k minimum total deposits?  i.e. CDs?  Or does the money need to be in stocks and ETFs?

[coldfusion]

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@_ptatohed wrote:

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A_H, do you know if there is any 100% risk-free investment opportunities with BoA / ML while maintaining the $100k minimum total deposits?  i.e. CDs?  Or does the money need to be in stocks and ETFs?

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You can get CDs through BoA but the rates they pay on their CDs <insert derogatory naught word here> even with a 6 figure investment.   If you wanted to buy either govt or corporate bonds that's also an option through ML.

[Aim_High]

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@coldfusion wrote:

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@_ptatohed wrote:

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A_H, do you know if there is any 100% risk-free investment opportunities with BoA / ML while maintaining the $100k minimum total deposits?  i.e. CDs?  Or does the money need to be in stocks and ETFs?

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You can get CDs through BoA but the rates they pay on their CDs <insert derogatory naught word here> even with a 6 figure investment.   If you wanted to buy either govt or corporate bonds that's also an option through ML.

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Exactly.  Risk-free would be parking the money in deposit accounts (or those CDs) at less-than-desirable market rates, so probably a poor "investment" while it would be "safe."  Yes, bonds would be more stable and reliable than stocks so perhaps a good compromise if safety is more of a priority for those funds than maximizing return.  

[longtimelurker]

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@coldfusion wrote:

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@_ptatohed wrote:

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A_H, do you know if there is any 100% risk-free investment opportunities with BoA / ML while maintaining the $100k minimum total deposits?  i.e. CDs?  Or does the money need to be in stocks and ETFs?

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You can get CDs through BoA but the rates they pay on their CDs <insert derogatory naught word here> even with a 6 figure investment.   If you wanted to buy either govt or corporate bonds that's also an option through ML.

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Does ML offer brokered CDs?   The Fidelity ones are a pretty good rate (e.g. as of today 2.3% APR for 1 month, 3.3% for 12 months)

[wasCB14]

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@Aim_High wrote:

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@coldfusion wrote:

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@_ptatohed wrote:

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A_H, do you know if there is any 100% risk-free investment opportunities with BoA / ML while maintaining the $100k minimum total deposits?  i.e. CDs?  Or does the money need to be in stocks and ETFs?

---

You can get CDs through BoA but the rates they pay on their CDs <insert derogatory naught word here> even with a 6 figure investment.   If you wanted to buy either govt or corporate bonds that's also an option through ML.

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Exactly.  Risk-free would be parking the money in deposit accounts (or those CDs) at less-than-desirable market rates, so probably a poor "investment" while it would be "safe."  Yes, bonds would be more stable and reliable than stocks so perhaps a good compromise if safety is more of a priority for those funds than maximizing return.  

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Depends on the bonds and stocks. Long-term bonds and junk bonds can be extremely volatile if long-term interest rates change a lot or the borrower falters.

I have a big share of my net worth in Berkshire Hathaway and don't lose sleep over it.

[MarkintheHV]

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@longtimelurker wrote:

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@coldfusion wrote:

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@_ptatohed wrote:

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A_H, do you know if there is any 100% risk-free investment opportunities with BoA / ML while maintaining the $100k minimum total deposits?  i.e. CDs?  Or does the money need to be in stocks and ETFs?

---

You can get CDs through BoA but the rates they pay on their CDs <insert derogatory naught word here> even with a 6 figure investment.   If you wanted to buy either govt or corporate bonds that's also an option through ML.

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Does ML offer brokered CDs?   The Fidelity ones are a pretty good rate (e.g. as of today 2.3% APR for 1 month, 3.3% for 12 months)

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ML does have brokered CDs.   https://www.merrilledge.com/article/broker-ed-and-bank-cd-solutions-ose

[iced]

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@_ptatohed wrote:

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@Aim_High wrote:

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@C6 wrote:

I'd suggest Alliant 2.5% flat and the FNBO Business Evergreen for 3% on the first 10,000 spend. I'd never park $100,000+ in a BOA checking or savings account to get the higher rate. Earning .04% on savings is laughable from a "Too Big To Fail Bank". BOA is not well capitalized and I have no faith in the FDIC. 

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I don't know of anyone who would park $100K in a "big bank" checking or savings account @C6.  The deposit requirements for Bank of America Preferred Rewards are total deposits including not only those low-yielding bank deposit accounts but also investments with Merrill Lynch.  Merrill offers Merrill Edge Self-Directed, Merrill Guided Investing, or Merrill Lynch Wealth Managment options.  Merrill Edge Self-Directed offers Unlimited $0 online stock, ETF and option trades with no trade or balance minimums.  Many of our forum members who pursuded Preferred Rewards status moved invested assets including IRAs over while maintaining minimal banking deposits.  

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A_H, do you know if there is any 100% risk-free investment opportunities with BoA / ML while maintaining the $100k minimum total deposits?  i.e. CDs?  Or does the money need to be in stocks and ETFs?

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The only investment opportunities that are 100% risk-free are those which are FDIC insured. And, as has been established, those don't exactly have great returns on investment right now.

[AndySoCal]

@_ptatohed 

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@_ptatohed wrote:

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@Aim_High wrote:

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@C6 wrote:

I'd suggest Alliant 2.5% flat and the FNBO Business Evergreen for 3% on the first 10,000 spend. I'd never park $100,000+ in a BOA checking or savings account to get the higher rate. Earning .04% on savings is laughable from a "Too Big To Fail Bank". BOA is not well capitalized and I have no faith in the FDIC. 

---

I don't know of anyone who would park $100K in a "big bank" checking or savings account @C6.  The deposit requirements for Bank of America Preferred Rewards are total deposits including not only those low-yielding bank deposit accounts but also investments with Merrill Lynch.  Merrill offers Merrill Edge Self-Directed, Merrill Guided Investing, or Merrill Lynch Wealth Managment options.  Merrill Edge Self-Directed offers Unlimited $0 online stock, ETF and option trades with no trade or balance minimums.  Many of our forum members who pursuded Preferred Rewards status moved invested assets including IRAs over while maintaining minimal banking deposits.  

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A_H, do you know if there is any 100% risk-free investment opportunities with BoA / ML while maintaining the $100k minimum total deposits?  i.e. CDs?  Or does the money need to be in stocks and ETFs?

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There is no such thing as risk free investment anywhere. All investments have risks stock bonds cash etc.  CD's and other cash investments currently you are losing money because the money you earn is not keeping up with inflation. Your money  by not keeping pace with inflation is worth less when you factor inflation . For example, if you earn 2.5% on CD or high yield savings account. currently inflation is around 8% you have lost 5.5% on the investment due to inflation.  Stocks and bonds you have risk of the lost of principal.