Question for all you financial guru's-what to do about my grandmothers large bank account
Posted July 1st, 2008 by tamtamfreedom
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I need some advice--my 93 year old grandmother has a huge chunk of money just sitting in her bank account. I am concerned as to the safety of this. She also has one annuity. BTW-The amount is $70k, which is a huge chunk to me to just have sitting in the bank.
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Depends on what your attitude and objectives are. Is your
most important objective to preserve her current wealth? If that's your #1 concern, then I would consider opening another bank account (it can be done online) that will allow you to keep some of that wealth denominated in a more stable currency. (Euros, Swiss Francs, etc.) You can still write checks, when necessary - be sure to check into transfer/conversion fees - that are denominated and paid in U.S. dollars. You know best what her individual situation is so you're going to be the one who is best-suited to make those judgements. I've got a 90 y/o mother-in-law and I face the same situation.
Best regards.
Thank you everyone for your comments and suggestions.
As she is not well right now...just got out of the hospital from a bout of pneumonia, I probably won't be discussing anything with her for a while but this gives me a chance to start researching and looking into some options.
I wish I could talk to her.
At her age, I'd put most of it in the bank in a 30 day CD. Put $10,000 in a savings account for easy access. If she understands the risk, I might suggest moving about $7,000 to 1 oz. gold Maple Leafs, but that's a rather risky position at her age, Again, without talking to her, it's hard to make a recommendation. Not all investments are right for all people. She may have it in the bank for a very specific reason or purpose. Being able to sleep is important.
93?
I'd keep it right where it is, especially if she will need this for home health care or other costs not covered by insurance in the next few years. That money will go quickly.
If you are worried about a rapidly declining (or crashing) dollar, consider putting a fraction in a bank CD from Everbank, who leads as a US bank that offers certificates of deposit in foreign currencies:
http://www.everbank.com/0...
I would not buy their Euro CD, but the Commodity or World Index CD, which are better diversified.
Make sure no account
Make sure no account contains over $100,000 - the FDIC limit - consider www.garynorth.com - he can answer questions based on her circumstance. He is an Austrian economist / Mises Institute fellow and friend of Dr Paul's - he is not advising gold at this time
TE
The FDIC is a sham
It is a private insurance firm funded by the member banks and contains hardly a drop in the bucket of the deposits it supposedly insures. It will be absolutely insolvent if a run developes (which it will).
**“The man who does not read good books has no advantage over the man who cannot read them.” ~ Mark Twain **
FDIC
Let's say that the FDIC became insolvent: the government would simply print the money to bail out the FDIC. I don't think there's any question about that.
If one is worried about a particular bank and the FDIC failing, it may be useful to split the account into two or three different banks.
Any bank that offers unusually high rates of return on savings accounts should be viewed as more suspect than those in the middle of the pack. Chasing bank returns often means you are chasing the riskiest and least capitalized banks. If they didn't need your deposit, they wouldn't be providing such an incentive for you to bring it over.
It's getting late to do much of anything
because you have to study up first in order to be confident in your decisions. Taking advice from people on internet forums is a dicey proposition. I'm not going to give you advice, I'm going to tell you what I did. I converted all of my cash, except for what I might need for six months of living expenses, and bought gold. I took physical possession of my gold and plan to hold it until we emerge through the other side of the economic black hole we're going to pass through. Gold is about to make a huge move because the dollar is about to take a precipitous drop in the very near future. Visit http://www.jsmineset.com/ and read, read, read. Time is of the essence.
I 2nd this approach
Removing the money as cash will take a while but I'd certainly place half in gold and silver immediately and remove the cash to a fire-safe box or safe. I'd certainly get it all out of the bank ASAP and re-deposit only what you need to cover your checks. This is exactly what I have done. The only thing I have left in the possession of the financial institutions is my trading account from which I sweep 80% of my profits each and every month.
**“The man who does not read good books has no advantage over the man who cannot read them.” ~ Mark Twain **
E-mail me and I'll tell ya what to do with Gramma's cash :-P
Just kidding, I don't know... Precious metals / Commodities / foreign $$, Good luck...
Check out at least twice a day
www.jsmineset.com
Here's the latest today
Posted On: Tuesday, July 01, 2008, 11:43:00 AM EST
It Is Now!
Author: Jim Sinclair
Dear Friends,
There are two subjects of extreme importance today.
I sent you an email months ago saying, “This Is It.”
1. I am now telling you, “It Is Now.”
Gold is preparing for an assault not on $1000, but for a brief penetration of $1200.
Violent chopping will occur, then off it goes to $1650.
This violent chop we have been living in here and now will resolve itself very soon and the take will be seen by history as having occurred in this last formation HERE AND NOW.
2. Where your juniors are concerned please give equal attention to the fundamentals before you make any decision. When beaten down, as they have been, think about gold at $1200 and $1650 coming sooner than anyone expected.
Call the company and respectfully demand to speak to management, not an IR officer. If management is in the country but will not speak to you, put that in the debit column. Allow time for a call back as many other investor may be doing the same thing.
The questions are simple. Property, finances and costs are the subjects you approach.
As an example, a high cost mining company in Ghana just experienced an increased production cost per ounce of gold as a byproduct of increased electrical costs in the country. Before you push the panic button the question to the company is “What are your total costs per ounce, not cash cost?” Once you have that answer think about gold at $1650.
I will discuss the “why” of all this on www.JSMineset.com this evening.
Respectfully yours,
Jim
Ask her if she
remembers the depression. That may be a good start. Find out if the money is in a bank or credit union. If the bank is a Canadian or American bank. Find out if she is willing to diversify a bit so that if something bad happens not all her eggs or in one basket so to speak. Be careful where you get help and don't tell to many people. Don't have her sign anything until it is looked very carefully, ask questions, and don't trust answers unless they are willing to put it in writing. Peace
Have her do ANYTHING but
Have her do ANYTHING but leaving it in the bank to lose 10-12% a year due to inflation! You must stress to her that she is currently losing THOUSANDS of dollars per year due to inflation!
Peter Schiff
Move it to EuroPacific Capital. Go to www.europac.net Listen to his live weekly broadcast their tommorrow night at 8pm EST. His group will protect your money and make your Grandmother some good dividends.