What financial vehicle was this??

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Creditcardguy
Posts: 31
Joined: Fri May 25, 2018 7:23 am

What financial vehicle was this??

Post by Creditcardguy » Wed Jun 13, 2018 7:58 pm

A few months back (before I found bogleheads.org), Edward Jones set my mother up with something for $35k that was just sitting in her checking account. It was a 1% load, she has to leave it there for at least 3 years, and when she takes it out there is no tax due on the growth, supposedly 4-5% per year. She's 69yo currently and in excellent health, I have one grandma that's 97 and the other is 101. :shock:

I guess I could call my EJ guy, but he's already miffed as I'm thinking about transferring my IRA's... :)

MotoTrojan
Posts: 2272
Joined: Wed Feb 01, 2017 8:39 pm

Re: What financial vehicle was this??

Post by MotoTrojan » Wed Jun 13, 2018 8:03 pm

Creditcardguy wrote:
Wed Jun 13, 2018 7:58 pm
A few months back (before I found bogleheads.org), Edward Jones set my mother up with something for $35k that was just sitting in her checking account. It was a 1% load, she has to leave it there for at least 3 years, and when she takes it out there is no tax due on the growth, supposedly 4-5% per year. She's 69yo currently and in excellent health, I have one grandma that's 97 and the other is 101. :shock:

I guess I could call my EJ guy, but he's already miffed as I'm thinking about transferring my IRA's... :)
Doesn't add up to me. Curious to hear more.

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Pajamas
Posts: 6015
Joined: Sun Jun 03, 2012 6:32 pm

Re: What financial vehicle was this??

Post by Pajamas » Wed Jun 13, 2018 8:11 pm

Sounds like some kind of federal tax-free bonds or bond fund. They are advertising those rates.

https://www.edwardjones.com/investments ... index.html

MotoTrojan
Posts: 2272
Joined: Wed Feb 01, 2017 8:39 pm

Re: What financial vehicle was this??

Post by MotoTrojan » Wed Jun 13, 2018 8:26 pm

Pajamas wrote:
Wed Jun 13, 2018 8:11 pm
Sounds like some kind of federal tax-free bonds or bond fund. They are advertising those rates.

https://www.edwardjones.com/investments ... index.html
Interesting. These must be government bonds then? AA/AAA with these return sizes and a 3-year duration still doesn't add up.

Creditcardguy
Posts: 31
Joined: Fri May 25, 2018 7:23 am

Re: What financial vehicle was this??

Post by Creditcardguy » Wed Jun 13, 2018 8:34 pm

Ok, I'll call him tomorrow and find out. Will report back. I thought this would be easy for you fellers!! :moneybag

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CABob
Posts: 4595
Joined: Sun Feb 25, 2007 8:55 pm
Location: Southern California

Re: What financial vehicle was this??

Post by CABob » Wed Jun 13, 2018 10:53 pm

That 4-5% tax free sounds good to me but don't like the 1% coming off the top. Since this is EJ I doubt it is as good as it sounds initially. Let us know what it is after talking to the rep.
Bob

Valuethinker
Posts: 35969
Joined: Fri May 11, 2007 11:07 am

Re: What financial vehicle was this??

Post by Valuethinker » Thu Jun 14, 2018 3:08 am

Creditcardguy wrote:
Wed Jun 13, 2018 7:58 pm
A few months back (before I found bogleheads.org), Edward Jones set my mother up with something for $35k that was just sitting in her checking account. It was a 1% load, she has to leave it there for at least 3 years, and when she takes it out there is no tax due on the growth, supposedly 4-5% per year. She's 69yo currently and in excellent health, I have one grandma that's 97 and the other is 101. :shock:

I guess I could call my EJ guy, but he's already miffed as I'm thinking about transferring my IRA's... :)
Some kind of structured product?

I wonder if the returns are partly capital distribution?

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