What would you do with $125 million?

[goillini52]

American Republic had a big in house telemarketing operation there in Des Moines until about 10 years ago. They would call around and find people who would talk to them and just ride them until they bought. They would call them 20 times since the agents were on the clock mostly anyways. I would knock them out of 3 or 4 houses and while I was doing that they were on the phone stealing one of my customers. I can't remember the details of their fall but it had something to do with money problems.

It's been a LONG time since American Republic was competitive.

 

[DayTimer]

There are a gazillion funds that will give you that return.

No problem, can you link us to just one? I'd take a conservative 5% interest any day. I assumed you meant "interest" when you said "interest." There are many mutual funds that may or may not provide that return (past returns no guarantee of future results). But a fund offering 5% interest would be attractive. If you got one, spill the beans!

 

[Chazm]

You should be able to average 5% over your lifetime no problem.

 

[WolfpackAgent]

There are a gazillion funds that will give you that return.

Ask Dave Ramsey. No doubt he knows a ton of them.

 

[DayTimer]

You should be able to average 5% over your lifetime no problem.

Ok, so what was mentioned was a conservative fund paying 5% interest.

Imho, "interest" paying funds are conservative and zero risk to principle. So I have $200K I will need within the next 5 years. Yes, I could invest it in a mutual fund and average 5% over the long haul. But in the meantime, Trump could nuke Canada, and the stock market could drop 50%. Yes, eventually it will recover as it always does. But will it recover before I need to pay some tuition bills? No one knows, so if you the need the money soon, then keep it where the principle is safe. I am not getting 5% on my cash. It was mentioned that getting 5% interest is easy and there are apparently a billion funds offering it. I can't find even one of those funds, so if it exists, why not post the flippin' name of it so someone could benefit from it?

WTF

 

[Thedude]

Ok, so what was mentioned was a conservative fund paying 5% interest.

Imho, "interest" paying funds are conservative and zero risk to principle. So I have $200K I will need within the next 5 years. Yes, I could invest it in a mutual fund and average 5% over the long haul. But in the meantime, Trump could nuke Canada, and the stock market could drop 50%. Yes, eventually it will recover as it always does. But will it recover before I need to pay some tuition bills? No one knows, so if you the need the money soon, then keep it where the principle is safe. I am not getting 5% on my cash. It was mentioned that getting 5% interest is easy and there are apparently a billion funds offering it. I can't find even one of those funds, so if it exists, why not post the flippin' name of it so someone could benefit from it?

WTF

Just put your money with enron.

 

[DayTimer]

Just put your money with enron.

PaulieD told me World Com would be safer.

 

[KRobby]

Ok, so what was mentioned was a conservative fund paying 5% interest.

Imho, "interest" paying funds are conservative and zero risk to principle. So I have $200K I will need within the next 5 years. Yes, I could invest it in a mutual fund and average 5% over the long haul. But in the meantime, Trump could nuke Canada, and the stock market could drop 50%. Yes, eventually it will recover as it always does. But will it recover before I need to pay some tuition bills? No one knows, so if you the need the money soon, then keep it where the principle is safe. I am not getting 5% on my cash. It was mentioned that getting 5% interest is easy and there are apparently a billion funds offering it. I can't find even one of those funds, so if it exists, why not post the flippin' name of it so someone could benefit from it?

WTF

I agree that people are mistaking interest with return. Interest is a function of return. But I have no idea why you think interest paying funds are conservative and zero risk to principle. One reason yield buyers often prefer to avoid funds is their principle is at risk. There's no maturity date. And as far as conservative, look at the Oppenheimer Rochester High Yield Fund (ORNAX)
There's a whole spectrum of risk for yield buyers, just like there is for appreciation buyers.

 

[DayTimer]

I agree that people are mistaking interest with return. Interest is a function of return. But I have no idea why you think interest paying funds are conservative and zero risk to principle.

I understand interest strictly in terms of the "rental fee" paid to one for the use of one's capital, i.e. principle for a period of time. I was responding to the post below and figured that maybe he knows something I don't.

So 125 million invested conservatively at 5% interest would yield

If an investment is conservative, I assume, little to no risk to loss of principle, and I assume 5% interest is, well, interest. I do suspect, given the silence, that he meant a 5% return, and not 5% interest. But is you are getting a 5% return over time based on appreciation or cash flows, e.g. a natural gas limited partnership (though 5% would be pretty weak for an LP), then likely there is principle risk, and that return is not guaranteed, even over the long run, and certainly not the short run.

 

[KRobby]

I understand interest strictly in terms of the "rental fee" paid to one for the use of one's capital, i.e. principle for a period of time. I was responding to the post below and figured that maybe he knows something I don't.

What tripped me up is when you said 'funds' in that sentence, in which case your principle is at market risk, even the yield funds. And actually plenty of individual interest paying investments like bonds that don't have market risk, will have straight up default risk.

If an investment is conservative, I assume, little to no risk to loss of principle, and I assume 5% interest is, well, interest. I do suspect, given the silence, that he meant a 5% return, and not 5% interest. But is you are getting a 5% return over time based on appreciation or cash flows, e.g. a natural gas limited partnership (though 5% would be pretty weak for an LP), then likely there is principle risk, and that return is not guaranteed, even over the long run, and certainly not the short run.

Exactly, 30 year Treasuries are about 3%. .