"rick++" <rick303[at]hotmail.com> wrote in message
news:1163604163.554785.321140[at]b28g2000cwb.googlegroups.com...
- quote -

You can purchase principal protected notes at many big brokerages without
the insurance wrapper. (Like any uninsured bond, the issuing company
promises to pay a certain amount at maturity, typically not less than the
original principal.) See, e.g.
http://fixedincome.fidelity.com/fi/F...splay?name=PPN

However, PPNs limit upside gains
- They are usually based on an index price and exclude dividends
- The participation rate (% of gain in index) is sometimes under 100%
- The maximum % gain is often capped (even if the index goes up more)

Here's an article talking about the plusses and minuses of these notes:
http://finance.sympatico.msn.ca/cont...nds/P44095.asp

As the article quotes a financial planner: "PPNs can be an 'ideal product
fora niche client' ... [W]hen you do the math ... statistically speaking
you're better off to actually have direct investment in the market. ...
[However] if somebody is extremely risk-averse" [these can serve a role].

Mark Freeland
BnetOnewsX[at]sbcglobal.net

plasticrules[at]gmail.com wrote:


- quote -

How long do you want to do this? If it is more than a few years, inflation is a
big enemy. Twenty years of 3% inflation will roughly halve the value of your
money. -- Doug

There are some insurance products that guarantee never losing principal
in exchange for limiting the amount of upside growth.
One these is called equity-indexed annuities, which has both a floor
and ceiling.

I am currently suspicious of them because the big brokers dont offer
them
yet. They are mainly sold through high-commission, high-penalty
agents.
They seem to be the rage at free-steak-dinner investment seminars.

- quote -

Interesting strategy ideas. So, you mean if someone had $1 million in
cash and wanted to retain the principle, and live off the interest only
then CD's is the *best* option?..... are there methods superior to
laddering money across CD's, with the sole purpose of generating a
permanent monthly positive cash flow to live on, and never touch the
principle? To me, CD laddering sounds like a pretty sure thing and
safe thing..... but my bigger question is, does $1 million or more buy
you any real leverage at a traditional bank beyond a free safe deposit
box? I mean, if you walked into some bank with a big deposit, would
they be unable to do more than standard rate....i.e. tell you to take a
hike if you demand 7% or 8% interest on a large principle?

plasticrules[at]gmail.com wrote:
- quote -

For a CD, yes. However if you bring $1 million to the bank they will
surely try to interest you in other types of investments which involve
more risk/reward for you and more profit for them than just CD's.

In fact, investing $1 million cash all in CD's wouldn't make much sense
to me either, except in a limited set of circumstances, such as you
needed all the money for something else in a very short time period.

-Mark Bole

Ah, great info. guys. So, it's true that $100,000 brought to a bank
vs. $1MM will have little if no sway beyond maybe a quarter point + for
a CD?

joetaxpayer wrote:
- quote -

For loyal customers, you can often ask for and get maybe a quarter point
higher interest on a CD than the advertised rate, especially if you can
show some other institution advertising higher.

At higher levels of saving, you can get more "free" perks such as safe
deposit boxes, investment newsletters and personal consultations,
discounted brokerage fees, notary, wire transfer services, and so on.

- quote -

Unless, of course, it were a 50% "immediate return on investment" such
as bozzle money from your employer. ;-)

-Mark Bole

plasticrules[at]gmail.com wrote:

- quote -

Nope. You can get slightly higher rates for more money, but nothing like
what you are asking.

Risk follows return, that why there's the expression "risk-free rate of
return" which is approx. the rate of a 1 year t-bill.

Bank CDs are now 5.2% give or take. You may find higher for long term CD
(5 yrs or more), but 10% is higher than what banks get for 30 year
mortgages. Even junk bonds aren't quite that high right now.

If I were offered 10% for my money, I'd run the other way, it would
likely be a scam, not a legitimate offer.

JOE

In article <1163355474.259722.170830[at]f16g2000cwb.googlegroups.com> ,
plasticrules[at]gmail.com wrote:

- quote -

Yes, larger amounts can command higher interest rates. But you
are talking fractions of a percentage point, maybe a 1/4 point
or so at most.

- quote -

Not at all. 5% maybe in this market.

- quote -

Check bankrate.com or check with your stock broker to find
brokered CD's.

-john-

--
================================================== ====================
John A. Weeks III 952-432-2708 john[at]johnweeks.com
Newave Communications http://www.johnweeks.com
================================================== ====================

do substantially larger amounts of money placed with one bank yield
substantially higher yields of interest? Does that logic work?

Ideals

1) 10% or more reasonable, relistic and possible?
2) Actual bank suggestions?

If possible and you can completely answer this question with an
approximate level of certanty, please quantify at different financial
scales, like $1000, $10,000, $100K, $1M.... what money ought to
command.

thx!